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There are many different places where a buyer can secure a mortgage to purchase a home. Deciding on where to secure financing and the type of financing to use to purchase a house is one of the most important steps to buying a house.
Since deciding on where to secure financing and the type of financing to use to purchase a house is so important, it’s critical buyers know what tips to follow when doing so.
“How can I successfully find and choose a mortgage broker or lender to buy a home” is a frequently asked question regarding mortgages and home loans. There are tons of mortgage brokers and lenders out there, so as you can imagine, there are some great companies, some average companies, and some terrible companies.
Below, learn about the differences between a mortgage broker and a mortgage lender as well as find out what the top 5 tips are for finding and choosing one. Buyers who follow these tips greatly improve their chances that they select the right place to secure financing and also select the proper type of home loan.
As a buyer is preparing to get a mortgage, one of the first decisions they’ll have to make is whether to use a mortgage broker or a mortgage lender. Many buyers don’t realize there is a difference between a mortgage broker and a mortgage lender.
A mortgage broker is basically a middleman between a potential borrower and mortgage lenders. Mortgage brokers help potential borrowers secure the best type of mortgage and rates. Mortgage brokers make their money by charging origination and/or broker fees, which are paid once closing occurs.
A mortgage lender is the actual organization who provides the funding for the purchase of real estate. An example of a mortgage lender includes credit unions or banks. Mortgage lenders will portfolio a loan and borrowers will pay them directly. While many lenders decide to keep their mortgages in house, it’s still possible some mortgage lenders can sell a mortgage, similar to a mortgage broker.
One of the most popular tips for choosing a Realtor is asking family, friends, colleagues, or others who’ve recently purchased or sold a home. The same can be said for finding and choosing a mortgage broker or lender!
In addition to asking family, friends, and colleagues for recommendations, asking a real estate agent is also highly recommended. An experienced buyers agent will have access to several brokers or lenders they’ve worked with in the past and had positive experiences dealing with.
One of the top reasons to hire a buyers agent when buying a home is because of their knowledge of top professionals and companies that’ll be needed throughout a real estate transaction!
While asking for referrals and recommendations is a very popular tip for finding and choosing a mortgage broker or lender, buyers should not only follow this tip exclusively. Just because an acquaintance or real estate agent recommends a specific mortgage broker or lender doesn’t mean they are the right fit for you.
The internet has changed the real estate and mortgage industry significantly, both in positive and negative ways. There are many common internet mistakes made by home buyers, one of which is believing that online mortgage calculators are 100% accurate.
The internet has made a positive impact though for home buyers who’re searching for mortgage brokers or lenders. A great tip for finding and choosing a mortgage broker or lender is to research potential companies online.
There are dozens of review based websites available for consumers who’re researching mortgage brokers or lenders. A simple search on Google of a mortgage broker or lender can often provide some helpful insight into a company from others who’ve used their services in the past.
Popular websites to visit to research potential mortgage brokers or lenders include Facebook, Google Business, Yelp, Better Business Bureau, Trust Pilot, and Zillow. These websites provide reviews from previous customers which can be very helpful to a potential buyer.
If you’ve purchased a home or you’re thinking about possibly purchasing a home, undoubtedly, you’ve asked yourself this question!
One of the top tips for finding and choosing a mortgage broker or lender is to learn about the products they offer. Each and every mortgage broker or lender will offer different types of mortgage products.
For example, some lenders will not offer FHA home loans. The same lender may also offer a first time home buyer program that a mortgage broker does not.
Since every home buyers circumstances are different, it’s vital they find the best mortgage product. This may require shopping around and talking with several mortgage brokers or lenders.
Before completing a mortgage application with a mortgage broker or lender, it’s critical to find out exactly what fees are charged. There are many different costs of buying a home, many of which are directly associated with the mortgage broker or lender that a buyer chooses.
Being aware of “common” mortgage fees can be very helpful. Below are some of the most common mortgage fees to be on the look out for.
Asking the right questions when talking with prospective real estate agents is always highly recommended. Home buyers who know the right questions to ask real estate agents when buying a home will generally have a better experience than those who don’t.
Since asking the right questions when talking with agents is highly recommended, shouldn’t asking the right questions when talking with mortgage brokers or lenders be highly recommended as well? The answer is a resounding, YES!
Below are 10 of the most important questions to ask mortgage brokers or lenders. By asking these questions, buyers can save themselves money, time, and frustration!
If a mortgage broker or lender struggle to answer these questions easily, you may want to shop around and talk with a couple other brokers or lenders. Buyers should never feel awkward about asking these questions since they’re very important.
Finding and choosing the right mortgage broker or lender is very important! Buying a home is one of the largest purchases most people make in their lives so working with a top company makes sense. The above tips for finding and choosing a mortgage broker or lender should be absolutely be followed.
Are you trying to choose a mortgage broker or mortgage lender in Rochester NY? The above 5 tips should be extremely helpful! If you haven’t hired a top Realtor in Rochester, contact me so we can discuss your home search. I have several different mortgage brokers and mortgage lenders in the Rochester area who provide top notch service.
About the authors: The above article “5 Tips For Finding And Choosing A Mortgage Broker Or Lender” was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
© 2017, Kyle Hiscock. All rights reserved.
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