Not everybody has the financial capacity to purchase a home with his own savings. Normally, you need to take some additional finance from an outside agency. Such loans are funded by various organizations such as banks, mortgage brokers and lenders, and others. Almost near everyone, there are situated a number of home loan lenders. But it is not that all lenders are trustworthy. There are numerous stories about fraudsters who have duped innocent borrowers to the tune of billions of dollars. But don’t fret, we have outlined in this post some tips to help you to locate the best and most trustworthy mortgage broker.
Who is a mortgage broker?
A mortgage broker is one who finds out what a customer needs and then liaises with banks and other lending institutions to search for the best source for the loan. A mortgage broker is regulated and licensed to act as an intermediary between the borrower and the lender. Usually, mortgage brokers get paid their broker fees at the close of the deal.
Why you need to work with a mortgage broker
It is advisable to work with a mortgage broker since the broker does all the homework of shopping for the best loan thus saving you time and even money. Instead of you spending your time and money browsing through dozens of proposals, the mortgage broker does this leg work on your behalf and shortlists two to three best proposals which suit your needs. You may find one who has got good contact with a local institution who markets a bouquet of financial products.
The work needed to be done by a mortgage broker
Let your mortgage broker read and explain the loan documents to you. A professional broker will know how to read between the lines. He will apprise you of the fine print and its consequences on your loan. He will inform you of the amount you need to pay upfront, the pre-closure amounts, if any. The details of the costs involved, hidden or otherwise, the property inspection clause, what other clauses or contingencies are included in the loan agreement. Such other clauses should be explained to you by your professional mortgage broker.
High level of transparency needed from your mortgage broker
Normally, the questions you ask when you apply for a loan relate to what are the rate of interests, what are their fees, and such. If you enquire for loans on phones, you may receive ambiguous answers just to lure you for a personal visit. It is not enough to analyze different loans by their upfront charges but your main aim is to find some lender who can command your trust. In any long lasting relationship, trust is the main bulwark. You need to find out who is the most trusted mortgage broker and for that you need to ask around and judge by the referrals you get from your friends and relatives. You need to know of the level of transparency exhibited by these mortgage brokers during initial visits. Did these mortgage brokers share all knowledge about all the loans offered in layman’s language?
Trust depends upon answers received from your mortgage broker
Did the mortgage broker keep his promise regarding the rate offered by the lender? Were all hidden costs or unhidden charges disclosed during initial discussions? No additional charges or fees were charged at the time of closing of the deal? Were all your questions answered promptly and to your satisfaction? You should enquire from your mortgage broker regarding the fees he will get from the deal; whether he will be paid in cash or in kind. Also, you should ask him to name a few of his top lending institutions. Frank and true answers to these will be the basis of a long lasting trustworthy relationship with your mortgage broker.