A mortgage broker is someone that works with financial institutions to help you obtain financing for your home purchase. Though it is not mandatory that you utilize a mortgage broker, there are many benefits – as long as you have done your homework.
Why should you consider this option?
Mortgage brokers are privy to many things that those outside the financial industry are not. There are incentives and programs that you may be eligible for that you might not be aware of otherwise. A mortgage broker is able to help you navigate your financing options in exchange for a fee.
It is imperative, though, that you do some legwork on your end, as well. Here are some guidelines about selecting a mortgage broker, and making sure that they are acting in your best interest.
Get a Referral
While banks and lenders may be able to refer you to a mortgage broker, this certainly does not ensure you will have a good experience. When seeking referrals for a mortgage broker, it is best to ask friends and family that have had a successful experience (and have completed the mortgage process.) Additionally, your Realtor® will also be able to refer you to a competitive and trust worthy mortgage broker.
Demand Transparency
While using a mortgage broker can be a huge benefit, there are always the few who will use their position to fatten their pocket book. When initially shopping for your loan, your mortgage broker should be discussing with you in detail the best product for your situation, and then should be completely willing to outline every fee and term. If you have found yourself in a relationship with a mortgage broker who is unwilling to communicate with you openly or negotiate terms about YOUR loan, it is time to seek another broker.
The bottom line is that you should trust your instinct in addition to these suggestions. If you are not comfortable with the communication or any other element of this important relationship, it is probably a good idea to look elsewhere. With over thirty-eight years selling Kansas City real estate, we have established wonderful working relationships with reliable professionals.
