There are a lot of things to consider when working with an experienced mortgage broker. For one, youll want to find out whether they are licensed in your state and if they have any disciplinary actions. You also want to be sure that they are familiar with the lending process and can provide you with a loan that meets your needs.
Youll also want to check out their credentials and see if they have any professional associations or other certifications that might be relevant to your situation. This will help you determine if they are the right person to help you with your mortgage.
They should be able to provide you with a detailed and thorough explanation of how each step of the process works and what documents youll need to submit. This will make you feel more confident about your mortgage application and ensure that you are able to understand whats happening at every step of the way.
Good communication is key for any business relationship, but especially so for mortgage brokers. They should reply to your emails and phone calls as soon as possible. This will not only show that they are communicating but also reinforce that you are their number one priority.
A mortgage broker can save you a lot of time by researching loan options and negotiating on your behalf with lenders. They can also pull your credit reports, verify your income and expenses and coordinate all the loan paperwork.
The broker will then work to source loans from a variety of lenders, which can give you a wider selection of products than you would find if you went directly to a lender. However, its important to remember that mortgage brokers dont have access to all of the loans available, so you still need to shop around for a good deal.
Your mortgage broker should also be able to provide you with information about the fees associated with your loan. Typically, these costs are a percentage of your total loan amount, and they are rolled into the cost of the mortgage itself. This fee should not be a deterrent, but rather should be equal to or less than the money youll actually save on your loan by working with them.
You should ask the broker how much they charge and whether it is a flat rate or a per-hour rate. Regardless of what you choose, be sure that the fee is fair and transparent. Federal law prohibits mortgage brokers from charging hidden fees and from basing their compensation on your interest rate or any other financial metric.
Its also important to make sure that your broker can close your mortgage in a timely manner. If you are unsure about this, you should talk to the broker to find out what their experience is and how long it usually takes them to close a loan.
It is also important to check whether they have any bad-credit mortgages or special programs for those who may have a difficult time qualifying. These types of special programs are sometimes offered by some brokers and can be helpful for those with less-than-perfect credit. You should also check if they have any experience working with these types of borrowers and what their success rates have been.