If you’re looking to buy a house or refinance a loan on your current property, you’ll need to secure a mortgage. While this can be done on your own, it’s much easier if you go through a certified mortgage broker who knows the industry inside out. Certified Mortgage Brokers act as middlemen between you and mortgage lenders, which can add a layer of security when dealing with something as high-stakes as a home mortgage. But if you’ve never used a mortgage broker before, you’ll want to make sure you ask the right questions before hiring one.
What Is the Right Mortgage For Me and My Situation?
There are numerous types of mortgages available and a certified mortgage broker will be familiar with all of them. They will know which one is the best option for your current situation. For example, you might have the goal of paying off a mortgage as quickly as possible so you pay as little interest as possible. In this case, a 15-year mortgage might be the best way to go. But, if you intend to sell your property in a few years rather than living in it for the term of your loan, a longer term with lower payments might be a better option.
Your financial situation will also play a major role in the type of mortgage you get. If you have a lower credit rating or only enough money for a small down payment, a mortgage that’s designed for these risks could be a solution. In addition to understanding the types of mortgages available, a mortgage broker will know exactly what you need to qualify for one. They will be able to sift through those that you won’t qualify for so you don’t waste your time.
How Much Will the Mortgage Broker Charge Me?
Always get the fees that a mortgage broker charges up front, before making any decisions. These fees should be provided to you in writing when they provide you with an estimate of your closing costs and other loan fees. When you finalize your loan, you should not be charged more than what is stated on the estimate. You should also compare mortgage broker rates to ensure you are paying a fair rate, although most brokers are generally within a few dollars of each other.
You should also understand the services your mortgage broker provides for their fees. In most cases, your broker will find you the right loan at the right rate, manage the necessary documents to be approved for the loan, and deal with the underwriter throughout the entire process. Some brokers might provide other services for a higher fee, but just make sure you understand what you’re getting before you sign with a broker.
What Experience Do You Have?
If you’ve never secured a home mortgage before, it’s important that you use a mortgage broker who has significant experience. The lending process can be extremely complex, so you need someone on your side who understands it and can help you navigate the tricky parts of getting a home loan. Ask them how long they have been in business and obtain references from people who were in a similar position as you are to see how the broker was able to assist them.
Using a mortgage broker to facilitate your mortgage loan or refinance can make the entire process easier for you. Let them do the tedious work of dealing with the lenders while you concentrate on finding the home of your dreams.