If you are planning to buy a house, the first thing you need to find out is whether you can afford a mortgage or not. For this, you will have to approach a mortgage broker. Think of this person as a matchmaker who will assist you in getting a loan that meets your financial needs. It often happens that first-time homebuyers are led astray by amateur brokers who give them a package they cannot afford later. Hence, you need to find an experienced broker as your partner.
The mortgage broker in Coral Springs should be able to offer you all the information about the loan, from the interest rate to loan terms, grace periods, and more. The broker’s know-how about current mortgage terms and industry practices will tell you the level of the broker’s experience.
Since getting a mortgage is a huge financial decision, it can be a little tricky to navigate the process. Mortgage companies offer different types of loans, all of which might sound appealing. Hence, trust is extremely important when choosing a mortgage broker. You should be able to say with 100% belief that the broker is offering you the right option.
Before we talk about the tips on how to find a mortgage broker, let’s take a look at their job description:
What Does a Mortgage Broker Do?
As a licensed professional, a mortgage broker is a middle man who works with lenders to find the best loan deal for their clients. In comparison, a loan officer works with just one lender, like a bank, and only recommends the products the bank offers. Here, a mortgage bank is an entity funding the loan, and a mortgage broker only connects the buyer to a lender.
Why Should I Approach a Mortgage Broker?
Often people ask this question since they can directly approach a lender themselves. Look for a loan with help from a mortgage broker because they can find you the least expensive lender. For example, if you have a low credit score, they will connect you with a lender who will be able to work around this and offer you a loan that comes with an affordable interest rate.
Before you start searching for a mortgage broker in Coral Springs, take a look at your credit score. You can easily access your credit report through Experian, TransUnion, and Equifax. If your credit score is in the “Good” range, between 659 and 750, you will get a better deal with an ideal interest rate and loan term.
Now that you know why a mortgage broker is vital to the mortgage process, let’s move on to the steps of hiring one:
Hiring a Mortgage Broker
Step #1
Do Your Research
If anyone in your friends and family has bought a house, ask them for referrals. Find out if they were satisfied with the broker or not. If the broker was knowledgeable? Would they hire them again? You can even ask your real estate agent for a referral. Since they are committed to helping you find a house, they will find you a reliable broker because they will get a commission on the purchase.
Don’t forget to check out the broker online. Reviews paint the true story about their service and tell you about their communication, problem-solving and organizational skills. Visit the Better Business Bureau (BBB) website to find out if any complaints have been made about the broker.
Step #2
Compare Brokers
Once you have made a list of the potential brokers, it’s time to compare their rates and what they offer. Narrow down the list to three candidates and ask them the following questions:
- Have you ever worked with borrowers in difficult situations?
If you have a low credit score or debts, the broker must be able to find you a lender who doesn’t charge you a hefty fee.
- What types of mortgages do you offer?
Sometimes, a mortgage broker themselves might not have what you want. However, they should be able to connect you with lenders who have what you want.
- What is your fee?
The law states that a mortgage broker must disclose how much they will charge. Usually, the fee is 1% to 2% of the loan amount and can go as high as 3%.
Step #3
Compare Services
Will the mortgage broker work for you over the phone or face to face? Since getting a mortgage is a delicate matter, the broker should be able to fulfill your wishes.
Step #4
Availability
When a buyer delays placing an offer on the house, the seller starts considering other buyers. Make sure that the mortgage broker is not too backed up to work on your case. The sooner your application gets processed, the sooner you can move forward in the home buying process.
And this is how you choose a reliable mortgage broker! Ace Mortgage Loan Corp. is one of the best mortgage companies in Coral Springs that offers multiple home financing services. Have a chat with them today to make your dream of becoming a homeowner too. To get in touch with them, call at (954) 866-7302