A mortgage broker can help you navigate the home-buying process without getting lost in the jargon. To find the right one for you, ask your friends and family for recommendations. You can also search online or look for a license.
A good mortgage broker should have access to many lenders and a variety of loan products. Before hiring one, meet with a few to compare their experience and fees.
Ask for Recommendations
A mortgage broker can help you find a home loan with better terms than you could get on your own. That’s because they have regular contact with a wide variety of lenders, including some that don’t typically work with the public. Ask a potential broker about their experience, the precise help they’ll provide and how they’re paid (by the lender or borrower).
The best way to find a trustworthy mortgage broker is to ask for recommendations from people you trust. Your family and friends may have bought homes recently, so they can recommend a broker that helped them get a great deal on their mortgage.
Ask about their experience with the broker’s fees, whether they communicated well throughout the process and how often they closed on time. You can also check online reviews, but keep in mind that grievances are more common than compliments.
Ultimately, you should feel comfortable with your potential broker’s professionalism, responsive communication and overall personality.
Search Online
Ask your friends and neighbors who they worked with to find their mortgage loans. If multiple people mention the same broker, this is a good indicator that they are satisfied with the process and service. Ask if they would hire them again and whether or not they recommend the broker to others.
A good mortgage broker works to match you with lenders that are most likely to approve your loan application, based on your goals and financial profile. They can also help collect and organize the necessary financial documents, submit your application to the lender and provide insights into local market trends.
It’s important to learn more about a mortgage broker before hiring them, so be sure to read online reviews. You can also contact your state’s regulator to learn more about their licensing status and disciplinary history.
It is also important to ask a mortgage broker how many clients they typically work with at one time, as this can impact how quickly they are able to start looking for loans on your behalf.
Look for a License
When you’re preparing to work with a mortgage broker, you need to be clear about your expectations. This includes knowing how much they will charge for their services. This is typically a percentage of the loan amount, though it may vary.
Most states require mortgage brokers to have a license before they can offer their services. This process varies by state, but can include paying a fee to register your brokerage, choosing a business name and filing paperwork. You might also be required to have a net worth to qualify for a license.
When researching mortgage brokers, look at reviews on Google, Yelp and the Better Business Bureau. This will give you a good idea of what other home buyers have experienced working with the mortgage broker.
Depending on what you find, this may influence your decision to work with them or not. You can also plug their name into the Nationwide Multistate Licensing System to see if they have an active license.
Schedule a Meeting
Once you’ve found a mortgage broker to work with, make an appointment for your first meeting. During this time, your broker should go over the process of home buying and the mortgage process in general.
They will also discuss what documentation they’ll need from you to complete the process. Some of this documentation may include payslips, bank statements and a driver’s licence.
During your initial meeting, you’ll also want to find out how your mortgage broker charges for their services. This will help you determine if they are worth hiring. They may charge a flat fee or an hourly rate.
In addition to discussing your home-buying goals, you should also ask your broker how long they’ve been in the industry and which lenders they usually deal with. This is because loan officers typically only work with one lender, while brokers can give you access to a broad selection of loans. This could be important if you’re on a tight deadline.
