Whether you have been searching for that perfect interest rate to refinance on your current home or investment property or you are a buyer in need of a loan to buy your dream house, a mortgage broker can be an asset to ensure the process runs smoothly. Obtaining a mortgage loan is an awesome responsibility and depending on your loan term, can be a life-long commitment. Don’t just pick any mortgage broker out of the phone book when shopping for a loan. Ask them questions and be sure that you both, as a team, are working toward the same goal. That goal being to match the perfect loan with your needs.
What are your fees?
Although a mortgage broker may not be able to give you an up-front exact amount to close the loan; he or she will be able to explain to you as to what type of fees to expect at the closing table.
A more precise amount will be disclosed to you once the loan process is underway.
What type of loans can you offer and/or specialize in?
There are an enormous amount of loans available for a prospective mortgagor to choose from. Some loan programs are, FHA (Federal Housing Administration), VA (Veterans Affairs), and RHS (Rural Housing Service). Some types of loans vary from ARM (Adjustable Rate Mortgage) to Fixed Rate Mortgages as well as Interest Only Mortgages. The type of loans and loan programs stated above are only a tip of the iceberg when it comes to the variety of options when trying to obtain a loan. Be sure your mortgage broker can provide you with whichever loan suits you best.
Do you use a specific title company?
This question can give you a satisfactory answer regardless of your intention. If your mortgage broker answer the question with a no, it gives you an opportunity to shop around for different prices on costs that title companies charge. Some fees are regulated such as the promulgated rate of title insurance, however, some fees such as the settlement fee and the title search fee can be expensive. If your mortgage broker answers yes to this question it is also a benefit to you. This means your mortgage broker has a connection with the title company who will most likely be performing the actual closing with you. Sometimes when numbers are crunched, mortgage brokers can get title agents to lower certain fees of theirs to help make the loan work with your budget.
Choosing the right mortgage broker will take the guess work out of the rest of the loan process once it is underway. Obtaining a loan can be stressful enough without having to worry about whether or not you can trust your mortgage broker to constantly keep your best interests in mind. If you get to know them, however, before the loan approval process begins, you will be confident in knowing they are working with you as well as for you.