A mortgage broker is usually a freelance agent that goes between the homeowner/borrower and the mortgage company/lender. They find people looking to buy a new home and analyze their credit to determine which lender is a good fit for them. Then the mortgage broker pitches the new home buyers to the lender of their choosing. The mortgage broker earns a fee for their work.
Advantages of Working with a Mortgage Broker
When looking to buy a new home many people choose to use mortgage brokers in Burlington. Using a mortgage broker takes the work out of the process for you; they have contact with numerous lenders. If you had to do the work yourself it could take forever, you would have to call several lenders and try to figure out which terms and rates meet your needs. A broker does all of that for you, they take all the stress out of it. Some lenders may choose to only work with mortgage brokers this means you would not be able to call and get a quote from them. There are lenders that also give special rates to brokers because of the amount of business they bring them. So you may get a lower quote with a broker than you would on your own. Working with a broker could save you thousands of dollars in application or appraisal fees. A mortgage broker has the skill and knowledge to handle your mortgage needs efficiently.
Cost of a Mortgage Broker
Since mortgage brokers are freelance agents they can be paid by the homeowner/borrower or the mortgage company/lender. They usually charge a small fee of 1% to 4% of the amount borrowed, this can be paid up front or added to the loan. A good mortgage broker will disclose their fees upfront. They will be able to itemize their fees and tell you exactly what you are paying for.
Finding a Good Mortgage Broker
When looking for a good mortgage broker there are certain qualities they need to have, they need to be straight forward and honest, experienced and knowledgeable, and they need to be able to play hardball with the mortgage companies to get you the best deal possible. If they ask for any type of money upfront or if the broker has a deal that sounds too good to be true, do not hesitate to question them. Try to avoid shady mortgage brokers by keeping your eyes open throughout the entire process. A few things to look for when you find a broker you think you want to work with are: are they a member of any professional associations, what do other consumers have to say about their experience with the broker, and do they have a license in the state they are operating in. Feeling confident in your mortgage broker is very important; they will be handling your finances and helping you to purchase your dream home.