Ravi Chandran
As the best home loans are obtained through brokers, all home hunters should know what are the best mortgage broker traits
By: Hitesh Khan/
A mortgage is the biggest investment most people will ever make. If you’re going to use a mortgage broker for such an important transaction, be sure that you’re working with those with best mortgage broker traits. Here are some distinctive traits of the top mortgage brokers.
When pursuing a new mortgage, many people use a broker to help them find and close a home loan. The good ones earn their pay, simplifying an oftentimes complicated and confusing process. It takes experience and intelligence on the part of the broker to help you find the right loan. Make sure that yours has these four characteristics before using her on your investment.
1. Your best interests at heart
Beware of the mortgage broker who’s desperate to close the loan. This will most likely be an individual who’s selling the loan to satisfy her own personal interests, not yours. Your professional should carefully help you evaluate a mortgage within the context of your financial situation. Steer clear of the broker who tries to get you to commit to a larger mortgage by insisting, “It’s only a little extra each month.”
2. Detail-oriented always delivers
Mortgages can be ridiculously complex financial transactions. Hundreds of details can easily fall through the cracks if your broker isn’t on top of his game. As you interview prospective brokers, give high scores to those who call you back quickly and are punctual for meetings. Ask for a list of references from vendors who they do business with, such as appraisers and title companies. These people depend on a detail-oriented brokers as much as you do.
3. Straightforwardness
Desperate mortgage brokers play the low-ball game when they’re hunting for loans. Look out for those who promise you the world. These individuals are generally playing a bait-and-switch game, hoping to lure you into their clutches. Either they’re going to try to pass through some hidden fees, or change your rate at the last minute. It’s the only way they can deliver on something that’s too good to be true.
4. Forthright about fees
Most brokers work hard for their money, and they deserve to be fairly compensated. If one is honest and brings value to the tables, he’ll have no problem disclosing her compensation. Be on guard against those who become skittish about fees or avoid discussing them.
Fortunately, you should never have to worry about finding a professional who displays these best mortgage broker traits.
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The best brokers never have to seek out new customers. They do such an effective, honest job that they generate referrals. They’re in it for the long-term, not just a quick buck, and they’re the professionals you want. The more referrals they have, the more they can be relied on to deliver an excellent mortgage.
Finding the best mortgage rate
To get the lowest mortgage rates, you need to shop around. Instead of shopping for a home and then applying for a mortgage, try reversing the order – get set up for a mortgage first. With a pre-approved mortgage in hand, you’ll be in a much stronger negotiating position with the seller compared to someone who has yet to arrange for financing.
Start off by checking your credit report and score. You want to check your credit report for any errors that might lower your credit score, while your credit score will be an important factor in determining the lowest mortgage rates you can get. Follow the highlighted link for information on ordering your report and correcting errors.
Next, talk with a couple of professionals with best mortgage broker traits for some advice on your qualifications and guidance on your mortgage options, including setting a budget for your loan. Find out what sort of mortgage loan rates they’re offering, but don’t make a commitment yet.
Then compare mortgage rates from a number of lenders. Check with a number of different types: banks, credit co-operatives, mortgage brokers, non-bank lenders, etc. See who’s offering the combination of the best mortgage rates and terms for a borrower with your credit profile, income and down payment in the loan amount you’re seeking.
Remember that home mortgage rates can change daily and sometimes even several times a day. So it’s important to get all your rate quotes the same day, or better yet within a few hours of each other, so you know you’re making a valid mortgage loan comparison among lenders.
The sort of home you’re buying will affect your mortgage rate as well. The lowest mortgage rates are given for properties that will be used as your primary residence. Lenders may charge a higher rate for a vacation home or second residence, and demand a larger down payment as well.
Investment property mortgage rates are higher than what you’d pay if you bought the property for use as a primary residence or second home, so bear that in mind if you plan to buy a rental property.
A professional with a best mortgage broker traits will also guide you through the refinance process
A mortgage refinance is basically trading in your old home loan for a new one. You take out a new mortgage, with a new mortgage rate and terms, and use it to pay off your old one. Refinancing can allow you to get a lower mortgage rate, pay off your home loan faster, change from an adjustable- to a fixed-rate loan or borrow against your home equity through a cash-out refinance. You can refinance through any mortgage lender – you don’t have to go through your current one. Qualification guidelines are similar to those of a home purchase mortgage.
