A mortgage broker is the go-between between a prospective lender and borrower whose property you are hoping to mortgage. They must be knowledgeable in regards to the conditions and terms of the laws of financing to better aid their clients. In some areas, the mortgage broker must also be licensed before beginning a career. Apart from the licensing and laws, there are also other specific characteristics that make for a good mortgage broker.
Hold Your Best Interests at Heart
If you’ve found the home of your dreams, and it passed the home inspection process, you may be in search of a new mortgage. A broker is there to help you look for and secure the loan on the home. Through their knowledge and expertise, a good mortgage broker can often simplify the process and make it less confusing and complicated. But be leery of the broker who desperately needs to close the loan. Instead of holding your best interests at heart, they only want to satiate their own business interests with a quick close.
Attention to Detail
The mortgage process can be complex, especially when dealing with the various programs and financial transactions. Unfortunately, important details can fall through the cracks if you’re working with a broker who is not on top of things. When interviewing candidates, you want to find a broker with an eye for detail and can close a loan quickly. They should also get high scores for being friendly and easily accessible through calls and emails. A list of references from past clients and vendors can provide insight into what others think of them and if they would do business in the future together.
Market and Industry Savvy
The market is constantly changing. A good mortgage broker should be on top of the local market in your area. They should also stay current with the latest industry trends. Finding someone who is market savvy can prevent deals from falling through or loan cancellations at the last minute.
Straightforward and Honest
A desperate broker may try to over promise and under deliver. Fortunately, you don’t need to work with a broker who pulls a bait-and-switch just to bring in business. The only way this type of person can secure a loan is by hiding fees or changing the rate at the end just before you’re ready to close. Look for someone who is straightforward and honest. If you don’t have good credit or your debt is too high, a good mortgage broker will be upfront about your qualifications.
Interest rates are still seeing all-time lows at present. If you’re securing a loan with a mortgage broker, don’t be afraid to ask your lender to compete with other professionals who are offering low rates. At worst, your request will be denied. At best, your broker will be competitive and get you the figures that you desire.
Upfront with Broker Fees
There are a large number of brokers who work hard for the money that they receive. If your broker is trustworthy and honest, they’ll be to be upfront about the compensatory fees that they will garner from your transaction. Individuals who are skittish and avoid disclosing them may be hiding something. It’s best to discuss this at the initial start of your interviewing process.
Securing a mortgage is one of the largest investments you’ll ever make. A good mortgage broker can help you through the process smoothly and without any difficulties. But you have to ensure that you’re working with only the best. The above tips can help you match the good characteristics and weed out the bad.