If you're planning to buy a house, the thought of applying for a mortgage is probably never far from your mind. After all, for most of us, securing a mortgage is what stands between us and achieving our homeownership goals.
While you can go directly to a bank or other financial institution to get a mortgage, a broker can be a great source of expert support and advice during the nerve-wracking application process. They can help you find the best mortgage rates and terms for your particular situation. If the benefits of working with a broker sound appealing, you now have the task of finding the right one for you. But with so many different options out there, it can be difficult to make a choice. In this article we lay out some places to find information and points to consider when refining your search.?
Where to find information
You’ll want to have as many sources of information as possible to help you find the right broker for you. Here are a few places to help you get started:?
The broker’s website: You should be able to find details about their location, credentials and process. Some brokers even have a mortgage calculator on their website to give you a general idea of what you could afford to borrow. Make sure that the website is secure and legitimate too.
Friends and family:? Recommendations from the people you know best can be invaluable in this situation. Find out if your loved ones have used a mortgage broker recently and ask them to share their experiences to help you on your own search.?
Reviews: People often share their experiences of working with mortgage brokers on Trustpilot to help other people have a positive experience. Check out mortgage lender reviews to see the positive and negative points people share. This is where Trustpilot comes in, with a wealth of reviews shared by other aspiring homeowners like you. Type in the name of a specific broker in the search bar or view all mortgage brokers here.?
Choosing a broker: Things to consider?
How much experience does the broker have?
It's important to work with a broker who has experience in the industry and a proven track record of success. You may want to ask the broker how long they've been in business, how many mortgages they've helped clients obtain, and what their success rate is.
What are the fees associated with working with a mortgage broker?
Brokers may charge different types of fees, including application fees, origination fees, and broker fees. Some brokers are paid by the lender when you take out a mortgage while others take a percentage of the mortgage amount. You'll want to ask the broker about their fee structure and make sure you understand what you'll be paying and when.
What type of mortgage products do they offer?
There are a range of different mortgage products out there such as fixed-rate or adjustable-rate mortgages, government-backed loans, or jumbo loans, and brokers may have access to all different types. If you already have an idea of the best mortgage for you then that’s great, but otherwise a broker should be able to explain the types of loans they offer and which one might be best for your needs.
How do they communicate with clients?
Communication is key when working with a mortgage broker, so it's important to ask how they will keep you informed throughout the process. You may want to ask about their preferred method of communication, how often they will provide updates, and how quickly they will respond to your questions. If you have a preferred method of communication, like in person or entirely online, then find out if a broker can accommodate that.
How will they help you qualify for a mortgage?
A good mortgage broker should be able to help you navigate the mortgage application process and qualify for a loan that fits your financial situation. They may be able to advise you on improving your credit score, reduce debt-to-income ratio, or find ways to increase your down payment.
Are there references or testimonials from past clients?
It's always a good idea to see how past clients found working with a broker. This can give you an idea of the kind of experience you might have and how successful they've been in helping other clients obtain mortgages. Reviewers on Trustpilot often share their experiences to help people like you, so be sure to read through as many as you can so you can be confident that other people have had a positive experience with the broker you have in mind.?
Working with a mortgage broker can be a smart choice if you're looking to finance a home purchase. By asking yourself these questions and doing your research, you can find a broker who will help you navigate the process, find the best mortgage rates and terms, and ultimately help you on your way towards your dream home.
Trustpilot is a review platform that is open to all. The companies and profile pages referenced in this article are provided for informational purposes only and are not recommended, endorsed by, or representative of the views of Trustpilot. The Trustpilot companies linked in this post are expected to abide by Trustpilot’s Guidelines, but have not been reviewed for compliance.
