So, you've found your dream home but you don't know what to do next. Hire some help. Find out here 5 things you need to know about using a mortgage broker.
There's a lot that goes into buying a home and although it's an exciting time, it's not all glamorous.
It can, in fact, be very stressful and that's why its important to surround yourself with the right people. Many homebuyers opt for using a mortgage broker but what exactly does that entail?
Read along to learn 5 important facts about using a mortgage broker to help you secure your new home.
Mortgage brokers act as a middleman between you and the banks. They're in place to help make the home buying process easier for you by finding the best loan for your financial situation. They work on your behalf to make your experience as seamless as possible from start to finish.
The cost of a mortgage broker varies and is going to be contingent upon the area that you're looking in. Brokers can either be paid by the banks or by the buyer and there are laws in place to limit how high they can charge. The Dodd-Frank Act was put in place to stop brokers from taking advantage of home buyers. This helps to ensure that people are given fair prices when shopping for their new place.
Their costs may differ from city to city, but they are fair and affordable.
The short answer is no. People often confuse the two but loan officers have job limitations whereas a mortgage broker does not. Loan officers are the point of contact for buyers when applying for loans. In other words, they are the bank representative that you work with when obtaining a loan. They face the limitation of working for their specific institution, while the mortgage broker works directly for you and can contact several loan officers for quotes.
There are plenty of ways to find a mortgage broker. You could start by simply searching “mortgage broker near me” online and looking at the top picks that show up. You could also ask your friends or colleagues for suggestions, this way you'll get reviews from people you trust. The most thorough approach would be to incorporate both of these tactics into your mortgage broker search. You'll want to take your time with this process because loans directly depend on and can affect your credit.
When you do decide on a mortgage broker, don't be hands-off during the process. This is the time to ask plenty of questions because you are the customer at the end of the day. When working with your broker you should be doing your own research and asking about which loan is best for you, what credit score you need to qualify, and if mortgage points are offered. Yes, mortgage brokers work on your behalf, but you should always be an informed shopper!
Buying a home is a huge accomplishment, and by using a mortgage broker you can open up your options and put yourself in a better financial situation. The next time you decide to house hunt or if you're looking to buy your first home, consider using a mortgage broker. You could do it on your own, but you don't have to!