Mortgage Basics: Information for First Time Home Buyers

How To Choose A Mortgage Broker or Banker

Okay, so nobody stays up at night dreaming of the perfect mortgage. You might, however, be dreaming of what that mortgage can get you, a new home, a way out of debt or more cash to spend. But your mortgage is much more than just a means to an end, and selecting the right broker to get the best deal for you is a very important first step. Often your best tool in choosing a good mortgage broker is your instinct. Here are a few guidelines about what qualities to look for in a mortgage broker: - is professional and courteous about answering your questions and returning your calls or emails. One of the advantages of using a mortgage broker is that they know more about the mortgage market than the average borrower and should be willing to share that knowledge with you. - is knowledgeable, able to offer suggestions and solutions to challenges that arise during your loan process. - is willing to explain differences in loan programs, advise you about the advantages and disadvantages of each in order to allow you to decide which available option is best for you. - provides a reasonable interest rate quote based on your needs and situation. They should be honest about the rate available to you, not provide you with a too good to be true rate quote which would change before closing. You will want to ask yourself if the rate quoted is in line with current mortgage rates, your credit situation, type of loan program specified, and the amount you want to borrow. Your mortgage broker should be able to explain how all of these factors effect your rate. - has many lending resources. Although this might be difficult to assess, you should feel free to ask your broker about it. The extent of different types of loan programs that they have available should also provide some clues. - does not charge any upfront fees before they have an answer on your loan, such as application fees or deposits. Your broker should also not have you pay for an appraisal until they have your conditional loan approval. Confidence and trust are important elements in the borrower/broker relationship. That trust should be earned by your broker through their professionalism, commitment, knowledge, honesty and willingness to discuss your options. That is why a referral is often a good source for finding a broker and why our company relies heavily on referrals from satisfied borrowers.