How To Find The Right Mortgage Broker For You
If you’re unsure of how to find a good mortgage broker, here are a few tips: Rate-shop with several lenders, ask questions of potential brokers, and get referrals from your real estate agent. Remember, mortgage brokers may charge additional fees, so you should get a good deal from your mortgage broker in Fremantle. It’s also important to consider whether the broker offers a high level of service, or simply charges too much.
Rate-shop with different lenders
Many people want a simple mortgage. Shopping around for rates can save them hundreds of dollars over the life of the loan. The more quotes you obtain, the better. Freddie Mac has published a study that found that borrowers who did not shop around paid more for their mortgage. Those who obtained five or more quotes saved the most money over the life of the loan. When choosing a mortgage broker, it is crucial to compare rates from several lenders.
The interest rate is the most obvious factor when comparing lenders. Mortgage brokers work with several different lenders and often have many programs to choose from. Banks and other institutions process mortgages in-house and have their own processors and underwriters. Borrowers who choose a direct lender usually receive referrals from friends or family. Because they have established relationships with their lender, they may be eligible for a better rate than those who choose a mortgage broker.
Ask questions of brokers
Before signing on the dotted line, ask questions of mortgage brokers. Generally, mortgage brokers get paid by the mortgage lender or pass on the fee to you. However, some lenders do not work with brokers. In either case, it is important to ask how much the mortgage broker will charge you. Generally, it takes 30 to 45 days to close a loan, but in a competitive market, this time can be reduced or extended.
Most people confuse a mortgage broker and a mortgage lender. Both are financial entities, and mortgage brokers help home buyers navigate the loan process. While a mortgage lender is responsible for approval, a mortgage broker helps you choose the right loan for your needs. To get the right loan, you must submit documents to the lender. Then, you must wait for approval. During the waiting period, you should ask your mortgage broker three basic questions:
Get referrals from your real estate agent
When it comes to mortgage brokers, word-of-mouth referrals are the most powerful form of marketing. Referrals are a key component of word-of-mouth marketing for many professions, from real estate to finance. The benefits of word-of-mouth marketing are especially significant for those professions that rely on consumer confidence and trust. The truth is, 91% of customers are willing to provide a referral, but only 11% of businesses actually ask for referrals. Getting referrals is not only a way to build a reputation as a great mortgage broker, but it is a powerful business strategy for a whole company.
Realtors have a natural rapport with mortgage lenders. Agents have a vested interest in helping their clients find the best mortgage for their needs. Depending on the experience of the real estate agent, targeting newer agents is easier than approaching seasoned agents. A happy client will refer a mortgage broker with a high level of trust and reliability. The key to getting referrals is to focus on customer service and proving your expertise in your niche.
Determine if broker provides good service
How do you determine whether a broker provides good service? First, look for a registration number. Then, check with FINRA. This independent, not-for-profit organization is mandated by Congress to protect the interests of investors and brokers. Some states refer visitors to this website for information. You may want to check with FINRA for additional details, if you feel the need. In addition to FINRA’s website, look for a brokerage firm’s name and location.
Ask if the broker offers consultations and employee support. Some brokerage firms offer extensive benefits and HR support. Others offer virtually no support. Consider whether the broker offers concierge and advisory services. These are just a few of the services available from a broker. Make sure you understand the scope of each option before signing a contract. After all, your broker may be working for your company for years! If they don’t, it’s better to find someone else.