Best Tips To Choosing A Mortgage Broker

Peter Trent 2017-03-13

Buying a property is a major point in anybody's life. If you're a first-time buyer, it can be both exciting yet intimidating at the same time. You could definitely use all the help and advice you can get. After all, even though the saying about learning from mistakes may be true, this is not something that you want to make a mistake in. You hope everything goes smoothly. Consider using the services of a mortgage broker. By getting to know you, they can match you with a home loan from a choice of lenders. Here are some helpful tips on choosing a mortgage broker.

1. Recommendation

Get recommendations by asking around. Ask friends, neighbours, co-workers, homeowners or even your real estate agent, assuming you're using one. These agents will have a network of many people in various aspects of the housing industry, such as inspectors or insurance. They will definitely be able to offer some help. Whoever you ask for help, try to find out if these brokers have solid reputations and if they were satisfied with the broker. By collecting all this information, you'll be in a good position to make an informed decision.

2. Research Using The Internet

The Internet is a valuable resource as well. After all, you're just looking for information which is what the Internet is all about. You're not looking to buy anything, so search good sites which have reviews as well. Research brokers to see if they have a good reputation. Find out if they work alone or if they're part of a larger organization. Learn as much from their profiles and take notes or bookmark a site you're impressed with so that you can come back and dig a little deeper.

3. The Interview Process

By now, you've surely amassed a number of mortgage brokers by asking around and using the Internet. You've probably dwindled down this number to a select few that you want to look at closely. Start calling them and see if you can set up an interview with them. Let's just assume you have three or four brokers you'd like to meet with; try to set up meetings with them as close as possible, perhaps in the same week or so. Ask them some questions and there's no harm in asking each person the same questions. This gives you a simple method of comparing their answers. Ask them for references of previous clients, how long they've been in this industry and the lenders they work with and closing times. Also, ask about rates, points, fees and bad credit scores. Remember to be as transparent as possible because the more information they have, the better advice and service you will receive.

As you're interviewing them, you can weed out anyone trying to pressure you into a decision and offering just one or two options. The more options you have, the better. If the broker asks you lots of questions, this is a good thing. Remember, the broker needs this information for discussion with the lenders. Only then will you receive the proper rates and services that is just right for you.

4. Making The Choice

It's time to choose your broker. Compare your notes. Who were you most impressed with? Who took the most time to ask you about yourself, your goals and was professional and courteous? Did they explain all the details and listened intently as well, so that you completely understood the entire process? Did they appear to be knowledgeable and trustworthy and give you confidence? If all these boxes are ticked, this will be your mortgage broker.

Also remember that a lot of the time, you're not the one to pay the broker. You don't actually get a bill from them. They will earn a one-time commission from the lender. Brokers have to be certified and they're also regulated. They will try to get you the best rates that meet with your requirements. They also have to do this, because if they suggest that you choose something that you can't afford, they can be prosecuted. You're protected and you'll be in good hands.

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