Mortgage brokers are experienced professionals in finding the best interest rates and lowest fees, and closing the loan on time. For first-time home buyers, navigating through the numerous processes (such as finding a fixed rate mortgage home loan) can be a daunting task, which is why partnering with a mortgage broker can be a wise decision.
Mortgage Broker Explained
A mortgage broker is an intermediary party to match borrowers and lenders. For refinancing or buying a new home, a broker can help you find the best mortgage rates after assessing your particular needs and situation. These professionals will not just offer you competitive pricing and rates, but they will also help you partner with the most suitable lender. These experienced mortgage experts can quickly determine the best lender for any type of borrower.
For those seeking a VA loan or an FHA zero down mortgage solution, finding a mortgage broker having relevant experience in this particular field will help simplify the process for you. They will make all the calculations and tell you about the options for which you qualify.
One thing to note here is that a mortgage broker is not specifically a lender of mortgage funds; they will originate the loans and place the order with the lenders. Upon closing of the deal, the funds would get disbursed. Mortgage lenders have access to a wide variety of lenders and mortgage products, unlike bank loan officers, who are only confined to the mortgage solutions provided by the bank.
What Mortgage Brokers Do?
From real estate agents to closing agents and underwriters, mortgage brokers work with everyone who participate in the lending process. It ensures the borrower gets the best loan and the loan is closed on or before time.
A broker can work with a brokerage firm or work as an independent entity. They are highly skilled at researching loan options and negotiating with lenders for their clients. To make the loan paperwork a seamless process, they will study the buyer credit reports and verify the information (income and expenses). You may also find mortgage brokers who have access to a powerful loan-pricing system, which can furthermore speed up the process.
The lender would usually pay the mortgage broker a fee or a commission once the loan has been closed. Some mortgage brokers also charge fees from the borrower directly and not relying on the lender. For such cases, it is usually a flat fee that can be paid at closing or financed along with the mortgage.
Questions to Ask a Mortgage Broker
Before you get too much into the process with your selected mortgage broker, you should ask these questions to verify if the chosen broker is the right fit for you:
- How much do they charge and who pays for the fees?
- Who are their partner lenders?
- What are the total years of experience they have?
- Are they licensed to operate in your state/region?
- Can they show references?
- How do they take care of lock rates?
Choosing a Mortgage Lender
You must do your homework to find the most suitable mortgage broker. You may start by asking for referrals from trusted people. You can also read online reviews and check with BBB (Better Business Bureau) for complaints. Once you start exploring your options, you need to broaden your horizon and look beyond the basic services offered by the broker. For example, if you are looking for a home affordable refinance program, you need to interview the broker and see if they can particularly assist you on that. Consider their communication style and how they manage their client requirements to gauge how they will work with you. For instances when you are not comfortable with the way how they manage their business, you always have other options to look forward to.
About Miller Home Lending
Miller Mortgage, LLC is a licensed mortgage broker operating in Massachusetts and New Hampshire. Our only mission is to offer the best customer service and secure the lowest mortgage interest rates by partnering with credible lending agencies. Our volume allows us to procure very low mortgage rates and flexible programs in the market. We can help you with great service and low rates whether you are planning to buy a home to refinance one.