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How to Find the Right Mortgage Broker for You

How to Find the Right Mortgage Broker for You

Keyword(s): mortgage broker

The real estate market is on fire and now is the perfect time to buy. Mortgage rates have been at record lows for 47 consecutive days. It has never been cheaper to borrow money for your home purchase.

Investors, first-time homebuyers, and thrift mortgage holders are all looking to take advantage. To get the most bang for your buck, you need to hire a mortgage broker that you can trust.

Read on to learn how to find the best broker for you. Explore how to shop for a mortgage lender and get pre-approved for a mortgage today.

Shop Around

In most cases, it is a mistake to move forward with the first broker that you talk to. Instead, you should shop around to find the most competitive one.

You may be wondering what to ask each broker for. The federal government created a standardized loan estimate form for consumers. In the past, this form was referred to as a Good Faith Estimate.

Here, the mortgage lender is going to break out the various fees and expenses that you are responsible for. In addition, the broker provides a mortgage payment estimate including property taxes and homeowner’s insurance.

With this information, you can shop around to find the best terms. Obviously, a low-interest rate is a critical factor.

However, it is wise to factor in lender fees and credits into your comparison. In some cases, a broker can provide generous credits to offset closing costs.

This is done in exchange for a slightly higher interest rate. The end result is a nominally higher mortgage payment with substantial savings to the borrower at closing.

Ensure the Mortgage Broker Meets Your Needs

Finding the right broker means identifying a professional with relevant experience and a great reputation. We recommend performing extensive research before committing to a broker.

For example, investment property owners have different financial needs than a residential borrower. It is important to ensure that the broker you hire has experience on the investment side.

Furthermore, rental property owners are likely looking at different loan types than residential borrowers. The right broker will have loan products that are personally suited to your needs.

Lastly, a professional handling a sizable investment like a mortgage needs a sterling reputation. Search the company and broker online to collect relevant feedback. Read customer testimonials and look for any complaints levied against the brokerage.

One way to hire a great broker is by relying on referrals from friends or family. Consider sending out a message on social media asking for recommendations. Your network is likely to point you in the right direction.

A Recap of How to Hire the Best Broker

Buying a residential or commercial property is certain to be one of the biggest investments you have ever made. The last thing you want is to pay more in interest or fees than necessary.

Taking steps like shopping around or performing online research is certain to help. If you enjoyed this article about how to hire the best mortgage broker, check out our blog for more great housing articles.