Steps To Find The Best Mortage Broker For You

Increasing numbers of homeowners have turned to mortgage brokers instead of going to traditional banking institutions in an attempt to find the best mortgage for their needs. Mortgage brokers, who are also known as mortgage advisers, mediate between the lender and the home buyer. These brokers have a deep inside knowledge of the mortgage field, and they can access a large pool of lenders to obtain the best rates for you.

A mortgage broker can search on your behalf and make the process of getting a mortgage much more streamlined. This is different than a bank which will only offer you an assortment of their own product line. Mortgage brokers have access to exclusive deals because of their wide network of relationships with lenders, and they can obtain a mortgage for you at the lowest rate possible. They can be particularly useful for people who find themselves in difficult circumstances because of their poor credit rating. Mortgage brokers will also complete your documentation, making this an additional advantage over using a bank to obtain your mortgage.

You will find that buying a home is probably the biggest commitment and investment you will ever make. For this reason, it is necessary to find an excellent mortgage broker as using the wrong one can end up costing you many thousands of dollars. Here are tips to help you find an excellent mortgage broker.

Do Some Research In Advance

It is important and worth your time to research the mortgage broker you intend to use. Ask the person how much experience they have in the field and what their credentials are. Does the broker take additional courses to improve their knowledge of the field? Have they advanced in the industry due to their expertise in obtaining mortgages for homebuyers?

Check out reviews by the broker’s previous clients. Are they recommended highly? A good mortgage broker will ideally have a lot of positive reviews. You can use the Internet to check this information quite easily.

Now, take some time to research the mortgage rates for which you will qualify. When you look at a website that shows rate comparisons, you will be able to see whether the mortgage broker is offering you a good deal.

Meet The Broker In Person

If you are considering several different mortgage brokers, be sure to arrange a personal meeting with each of them. This will allow you to ask questions and to evaluate what type of service they will provide to you. Are they up to date on current developments in the industry? Are they knowledgeable and informative? Can they answer your questions with confidence?

Is the broker prompt and responsive when you need their service? Are they clear when they communicate with you? Mortgages can be very complicated, so it is important to have a broker who can explain things clearly to you, especially if you have never bought a home before. Are they well organized and professional? Are they attentive and patient with you? These are important qualities of a good mortgage broker.

Ask The Broker Some Important Questions

What lenders do the mortgage brokers deal with? Take the time to research these lending institutions on your own. Be sure that they use accredited, reputable lenders. Does the mortgage broker dealing with a wide variety of lenders? If they work with a small group of lenders, ask why they use these particular people.

Does The Broker Understand Your Needs?

You must clearly explain to the broker your financial needs and situation right from the beginning. Give the broker all the details of your salary and what you need in a mortgage. This will help the broker find the mortgage that suits your situation.

When your broker recommends a mortgage product to you, find out the reasons why this particular product is being recommended in your situation. If the broker can explain the reasons for the recommendation, it is a good sign. It means the broker is oriented to serving the customer and is willing to understand and serve your needs.

Can The Broker Sell Themselves?

A good broker should be able to sell themselves to you, the client. Can this particular mortgage broker offer you something the rest of them do not? Do you find the sales pitch believable?

Getting The Best Mortgage Rate For Your New Home

This may be your first time to enter the housing market, and you’re ready to take on your first mortgage. It could even be that you are already making mortgage payments, but want a better rate. Or, your mortgage may be up for renewal. No matter your situation, this checklist should help in your search for the Best Mortgage Rate.

First Step: Prep Work

You’ll need your current mortgage documents. It’s not unusual to find these stuck away in the bottom drawer of a filing cabinet or underneath a pile of discount flyers for pizza. You may have included them with other papers marked ‘important.’

Become reacquainted with the terms spelled out in your contract. You’ll need to know who the current lender is, the interest rate on loan, the type of mortgage, the penalty for breaking the existing agreement, and when you can refinance. The details of this information will help you determine your options.

If this is your first time to buy a home, get well acquainted with your budget so that you can figure out the amount you can afford to borrow. Make sure you don’t over-extend yourself by taking on more than you can handle. Develop a clear understanding of the overall costs of owning a home.

Second Step: Shop Around

Speak with your current mortgage holder to get the rate currently being charged to new customers. If you can prove that you have a good track record of timely payments and have been loyal to your lender, you will be in a position to ask for a reward in the form of that same introductory rate offered to new borrowers.

Contact the lender’s customer service department and give them a head’s up to the fact that you are shopping around for a better rate. Chances are, they will offer a brand new blended rate that combines a new mortgage product with your existing one that lowers your overall rate. Of course, this all depends on the terms of the original contract.

Third Step: Get Help From A Professional

Truthfully, not many people understand the ins and outs of different mortgage options along with their pros and cons. Do you want a fixed rate, or should it be variable? How about monthly or bi-weekly payments? Questions like this are seemingly endless, especially for the novice.

Mortgage brokers are trained to offer personalized advice about products that fit your needs. They can help you figure out if it makes sense to refinance at today’s rates and pay the penalty for breaking your existing agreement, or if you should wait. These professionals can also help you find the best mortgage rate available.

According to the Canadian Association of Accredited Mortgage Professionals, average Canadians renegotiating their mortgage through a broker were able to reduce their interest rates on average 125 points as compared to 114 among others who went directly through their credit union or bank.

Fourth Step: Lock in Low Rate

If you still have doubts about switching lenders, it will do no harm to get pre-approved by a new lender. That will lock in the new rate. With many worried about an increase in mortgage rates, now is the time to take advantage of the low rates available now. Typically, pre-approvals rates are locked in for as much as 120 days at no charge.

It even gives you more time to find your dream home if you haven’t already. A locked-in rate means there is no need to rush to find a new home because of fear about rising rates.

Fifth Step: Don’t Forget Your Renewal Date

The ideal time to start searching for a new, better mortgage rate is 120 days before your current contract comes up for renewal. Forgetting about the renewal date and giving yourself just a few days in which to compare the market and shop for a new deal, the pressure may force you to give up and, out of convenience, stay with your current mortgage holder.

Welcome to Prime Mortgage Group!

At Prime Mortgage Group, we provide local in-house underwriting and loan closing services. The Prime Mortgage Team creates a “PRIME” residential mortgage experience exceeding your expectations with a “can do, on time” attitude.

Prime Mortgage Group is a full-service lender operating in the Central Florida area. Prime Mortgage offers primary, secondary and investment financing solutions for 1-4 family residential homes. We offer most conventional, government, Jumbo, and construction to permanent mortgage products to fit your individual needs. Whether you are purchasing your 1st home or your 10th home, Prime Mortgage Group will get you to the closing table as quickly and efficiently as possible.

At Prime Mortgage Group , our ultimate goal is to create lasting relationships with each of our clients so that we may continue providing excellent service for many years to come.