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Educational Consumer Tips

Mortgages - Broker

Author: Rachel Willard
Published:
Category: Finance

Once you have found your dream home, you’ll need the right mortgage to make it your own.  Shopping for mortgages at big banks can be overwhelming and intimidating. A mortgage broker can assist you with the process and provide an option of loans from multiple sources. Refer to these tips when choosing a mortgage broker.

Tips for Choosing a Mortgage Broker:

Shop Around.  Start your search by getting suggestions from friends, family members, and your real estate agent. While you are researching brokers you should also find out the going interest rate from large banks. Look for a broker who is a member of the National Association of Mortgage Brokers.  Members are required to have experience, adhere to the code of ethics, pass a difficult exam, and participate in continuing education programs. Check the broker’s reputation at bbb.org. Be sure to read the broker’s reviews and complaints. Make sure the broker you choose is licensed with the state.

Look for a Broker Who is Well Connected.  Since it’s the broker’s job to find you the best loan terms, the broker should be well connected with various lenders and banks. A reputable broker usually has at least six connections. When the broker has multiple connections they have the option to find the best mortgage length, interest rate, and specific requirements for your loan. The broker should be able to beat the going interest rate because of their access to banks and lenders.

Interview the Candidates.  Ask how long the mortgage broker has been doing business. The broker should be able to help you set individual goals and listen to your specific needs to find the best loan terms for your situation. Ask how many mortgages like yours they have brokered in the past. Beware of brokers that quote you an interest rate without asking detailed questions. Do not choose a broker that asks for money upfront or rushes you into applying for a loan. Remember if a broker tells you everything you want to hear, it’s probably too good to be true.

Check References.  The broker should provide a list of references you may contact. Speak to the references and ask if the broker was able to act in their best interest. Ask if the references were satisfied with the loan they received and if the broker was able to assist in achieving their personal goals. Ask if the broker responded to questions and concerns quickly and efficiently.

Get a Written Contract.  Make sure the broker puts all the details of the agreement in writing.  Be sure the contract includes the services the broker will provide and the cost of the services.  Avoid brokers who refuse a written contract, they are most likely untrustworthy.

About the Author: Rachel Willard is Communications and Marketing Manager for BBB serving Eastern Massachusetts, Maine, Rhode Island and Vermont. Find Rachel on Google +.

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