Mortgage Brokers: What Should I Know About Them?
A mortgage broker is a licensed financial professional who helps homebuyers apply for loans with different lenders, finds banks with reasonable interest rates, and arranges for better loan terms.
They act as the middle persons between the homebuyers and the lenders. They inquire on different banks on the buyers' behalf to find the one with the most reasonable and workable interest rates. Mostly they are connected with many lenders, so working with them would be your advantage.
Mortgage brokers are usually paid by the lenders, though in some cases their clients cover their service charges. Their competitiveness and the house prices in the area determine the service rate of the mortgage brokers. However, they are only limited to not more than 3% in points and fees.
The best way to find the most reliable broker is through friends’ referrals (make sure they already worked with the brokers). The other one is through your real estate agent’s referral. Your real estate agent surely works or connected with some trusted mortgage brokers.
Finding a good mortgage broker is the same way as finding a good mortgage lender. It’s wise to ask them whatever you needed know about the services they offer and the way they work on the process. You can also check your state’s professional licensing authority to ensure the good reputations of the brokers.
Mortgage brokers have a critical role in the process of buying a home. It is very important to know them personally, know about the services they offer, and their reputations.