How to Be Your Own Mortgage Broker
As a homeowner, you probably already understand how important it is to have a reliable and ethical mortgage broker who can give you accurate quotes and advice on how to pay for your mortgage. However, you need to keep in mind that finding the right broker for you means finding a mortgage that fits your budget and lifestyle. It’s also important to be aware of the different types of mortgage brokers so that you can find the one who best suits your needs.
When looking for a mortgage, it is essential to use a broker who has experience with all types of mortgage lenders. A good broker can save you valuable legwork because they have regular contact with many different lenders. This makes it easier for them to negotiate a reasonable rate with each lender. In addition to helping you find the lowest rates, a broker can also steer you away from lenders who have onerous mortgage terms hidden deep inside their terms.
It’s also important for the broker you hire to keep a close eye on your finances. Some brokers will charge you an annual fee to perform this job, but the fees are nominal compared to the benefits you will reap as a result of using the service of a professional. Using a mortgage broker to check your credit score, monthly income, and credit report can prevent you from falling into debt when you apply for a mortgage. The best mortgage brokers also help to maintain your credit rating so you can better qualify for a loan once you’ve found a lender.
Finally, you want to make sure the broker you work with can help you with closing costs. Sometimes, you will receive a “loan origination fee”post-closing costs” if you use a bank to close your mortgage. These fees can be substantial and can significantly raise the amount you owe at closing. In many cases, the bank may charge you more than what you owed on your mortgage by not requiring you to put down a down payment.
To avoid having to pay these costs, find out what type of “fee” the mortgage broker is charging. Be sure to ask them for all of the expenses they charge you. The more you are able to negotiate, the less you will end up paying on your mortgage.
Before hiring your first mortgage broker, talk to them to see if they include a “leverage fee” in the mortgage “fee.” This is a fee that’s often added to your mortgage. By paying a little extra upfront, the broker can be sure to make more money in the future.
Also ask what other fees they charge, such as appraisal fees or appraisal commission. The mortgage broker’s fees can be higher than the rates you are quoted. The reason for this is that brokers are getting a percentage of the price you pay in exchange for negotiating lower rates. So if you are able to get them to accept a lower rate, they will also be able to charge you a lower commission.
Before you start negotiating with a mortgage broker, make sure you have all your questions answered. Make sure they are able to answer your questions and explain all of your options to you. Asking these types of questions ensures that you’ll have a clear understanding of what you are getting into and why you are agreeing to the quote they are offering.
After you get the quotes from several mortgage brokers, it’s time to compare. Compare the various rates you are being quoted and make sure they are the same for the mortgage you will be closing.
If you don’t have any questions, don’t go with the first mortgage broker you interview. This will just increase the amount of time it takes you to get through their doors and waste time on a mortgage that may never get closed. Take the time to look at mortgage brokers in your area to see what makes sense for you and your family.
Keep in mind when you are comparing mortgage brokers, not all brokers are created equal. If you feel as though you’ve found the right one, don’t hesitate to ask questions.