There comes a time when life circumstances change and the decision to take out a mortgage comes. But how to choose a bank out of more than 80 workings in the market? A mortgage broker is a specialist who will not only help you choose a financial institution but also advise you on how to save time and reduce the mortgage rate. But how to choose the right broker who knows where the best rates at the moment and will help determine the best offer for you?
Why do I need a broker?
Once you have a mortgage, you will have to pay a fairly large amount of money each month to pay off your debt. Not only will a broker’s services help you save a great deal on your monthly payments, but they will also help you with the search and approval process. So, what are the benefits of a broker?
First, a free consultation in which a specialist will tell you about the offers available today, popular and profitable banking products. And he will also get an idea of what kind of housing you need, make a general impression of the credit history. Will assess other parameters which can have a positive or negative effect on the credit score.
Second, preparing a package of documents for the bank. The specialist will check the credit history, make a dossier for the financial institution, provide samples of forms for filling out, write a list of references, make copies of documents, and make applications.
Third, help with the appraisal of the home to be purchased. In most cases, companies that do appraisals give mortgage brokers discounts on services.
Fourth, independently submit your documents to lending institutions, and after the approval of the mortgage will explain the conditions of which bank is more profitable and why. Then accompanies the borrower to the signing of the contract.
Imagine how much time you need to spend to go through all these stages without help from outside.
How do I choose a reliable broker?
There are many offers on the market, since you have a long and important path side by side with a mortgage broker, it is important to choose a reliable companion and focus on the following criteria.
– Check the register. Before you begin, speak with a mortgage broker, make sure they are properly qualified and registered. In the US, mortgage brokers are required by law to be registered by the Nationwide Mortgage Licensing System & Registry (NMLS), in order to be licensed to give mortgage advice. Look at the NMLS Register for their name.
– Look for a whole-of-market broker. If a broker is pushy about recommending a particular bank, think about it, he may have a vested interest in working with that financial institution. A whole-of-market broker will be able to assess every available mortgage and find the most suitable for you.
– Challenge an experience. A broker with years of experience knows what banks are offering faster. Thanks to ongoing cooperation with the lending institutions, has a partnership with most, which will allow getting reduced prime rates.
– See ratings and reviews. It is important to track reviews from people you know on social media and look at reviews on Google and Yelp.
No Guarantees. Be wary of brokers who guarantee a successful transaction even before or at the first consultation. A bona fide agent does not take responsibility for the banks’ decisions. He can only guarantee his own work until he gets a result.
– Trust your feelings. Trust your instincts, sometimes the broker with the best reviews may subconsciously cause distrust and discomfort, while with other ones – you will find understanding from the word go. Do not be afraid to choose, together with the broker you build your future!
LBC Mortgage is proud to serve clients with excellent sources of knowledge and offer fee-free mortgage advice. Give us a call!