A mortgage broker is a professional who works to connect borrowers with lenders. They offer assistance with the home loan process and can help borrowers save time and money. They also act as a mediator between clients and lenders, which can help ensure that borrowers receive the best possible terms.
Typically, they have relationships with several lenders and provide a wide variety of loans to their clients. Some brokers have access to every lender in the country, while others may focus on particular types of mortgages, like VA or FHA loans.
They can save borrowers time and hassle by researching their options, collecting documents that a borrower needs to complete a loan application and preapproving them for a mortgage. They can also provide insight into the local market, which can help borrowers make informed decisions about their housing goals and loan options.
The mortgage broker’s job is to find a loan that fits the client’s goals and budget. They do this by comparing different mortgage products from multiple lenders and recommending the best fit.
Some brokers charge a fee for their services, while others do not. It’s important to ask about fees upfront, so you know what you’re getting into before you sign any paperwork.
Broker fees are usually paid by the borrower, but they can also be a part of the overall cost of the loan. The fees can include an application fee, a rate lock fee and other transactional fees. Some brokers are willing to work with borrowers to get the fees waived or reduced, so check their contracts carefully before you decide to use them.
Choosing the right mortgage broker for you can be challenging. You need to find someone with experience, industry knowledge, good communication skills and a strong understanding of your unique financial situation.
You should also find a mortgage broker that offers the type of customer service and personal attention that you expect from a professional who is handling your home financing. You should be able to speak with a broker by phone or email after hours and get prompt responses when you have questions.
If you’re in a hurry to buy a house or refinance, find a broker who can start looking for mortgages as soon as you’re ready. Often, you’ll need to be patient with them as they get their schedule organized and ready to start working with new clients.
Finding a mortgage broker that you can trust and feel comfortable with is the key to making the best decision possible for your home financing. You can do this by asking these questions:
Are you licensed?
A mortgage broker must be licensed by a state regulator. They take a 20-hour course before taking the licensing exam, and they must take continuing education classes to keep their license current. You can also check with the Nationwide Mortgage Licensing System & Registry to see if they are licensed in your area.
Do you have a reputation for providing excellent customer service?