Find A Good Mortgage Broker For Your Rental Purchases
Finding a good mortgage broker can be a daunting task to say the least. Running from lender to lender searching for the best terms for you mortgage loan can be both confusing and time-consuming. All of this can be remedied by using a mortgage broker.
A mortgage broker does not work for you but instead he is an independent contractor who provides you with a list of lenders you can choose from. He has access to far more lenders and mortgage products than you could ever have access to.
Do not rely entirely on your broker to dictate the terms of your loan. Know what your credit history is, your asset/debt profile is and have at least a good idea of what type of loans you may qualify for before ever contacting your broker.
There are three steps in finding a good mortgage broker:
1) Get Referrals – If you know of other landlords who use a mortgage broker, find out the name of the broker they use and all the necessary information on the broker. Using a referred mortgage broker from a bank or lending service may not always guarantee a good experience either.
While these referrals may be quite legitimate they sometimes result in a bad experience. Instead consult friends and other landlords about mortgage brokers they have used and have had a pleasant experience with.
2) Demand transparency – A good broker should ask lots of questions about you and your future plans in order to find the best deal for your needs. All fees and terms should be explained in terms that you understand so you can compare one lender to the next.
A broker who hides potential closing costs, fails to explain any upfront costs, makes you feel as though he is rushing your decision or unwilling to negotiate terms on your behalf should be passed over and a new mortgage broker selected.
3) Check the brokers’ credentials – The National Association for Mortgage Brokers is a non-profit organization for the industry that holds their members to a strict code of ethics. It also offers certification in specific areas of expertise.
Because a mortgage broker deals on a wholesale level, they can sometimes offer you loan programs that you won’t find if you deal directly with a lender. He acts as a liaison between you and the lender to offer you the best deals in the market. Brokers make their money by charging you a percentage of the total amount you borrow.
This is typically between .05% and 2% and most borrowers don’t mind this because the broker takes the hassle out of borrowing. So the more you borrow, the more the broker makes.
Caution should be taken when using a mortgage broker. The so called predatory lending practices sometime create a mortgage that you absolutely cannot afford. Your broker may urge you to take out a bigger loan than you need in order to make more on the deal himself. Make sure your loan is only for as much as you need and not an exuberant amount.
Brokers are not the only people vying for your business. The relationship between a mortgage broker and wholesale broker is critical. Wholesalers depend on mortgage brokers to bring in business and practice good sales ethics in their dealings with the public.
In the quest for a good mortgage broker, one must be diligent and efficient in their background checking along with being thorough. Once obtaining a broker, one should monitor the activities the broker enters into on the behalf of the client.
The vast offers that the market makes available with variations in terms and programs, sometimes tempts a broker into acting less than honest.
When considering a broker, references and all available public records. Perform a background check and do a credit analysis of the brokers business. These will tell you the type of company or person you are working with.
A mortgage broker does not work for you but instead he is an independent contractor who provides you with a list of lenders you can choose from. He has access to far more lenders and mortgage products than you could ever have access to.
Do not rely entirely on your broker to dictate the terms of your loan. Know what your credit history is, your asset/debt profile is and have at least a good idea of what type of loans you may qualify for before ever contacting your broker.
There are three steps in finding a good mortgage broker:
1) Get Referrals – If you know of other landlords who use a mortgage broker, find out the name of the broker they use and all the necessary information on the broker. Using a referred mortgage broker from a bank or lending service may not always guarantee a good experience either.
While these referrals may be quite legitimate they sometimes result in a bad experience. Instead consult friends and other landlords about mortgage brokers they have used and have had a pleasant experience with.
2) Demand transparency – A good broker should ask lots of questions about you and your future plans in order to find the best deal for your needs. All fees and terms should be explained in terms that you understand so you can compare one lender to the next.
A broker who hides potential closing costs, fails to explain any upfront costs, makes you feel as though he is rushing your decision or unwilling to negotiate terms on your behalf should be passed over and a new mortgage broker selected.
3) Check the brokers’ credentials – The National Association for Mortgage Brokers is a non-profit organization for the industry that holds their members to a strict code of ethics. It also offers certification in specific areas of expertise.
Because a mortgage broker deals on a wholesale level, they can sometimes offer you loan programs that you won’t find if you deal directly with a lender. He acts as a liaison between you and the lender to offer you the best deals in the market. Brokers make their money by charging you a percentage of the total amount you borrow.
This is typically between .05% and 2% and most borrowers don’t mind this because the broker takes the hassle out of borrowing. So the more you borrow, the more the broker makes.
Caution should be taken when using a mortgage broker. The so called predatory lending practices sometime create a mortgage that you absolutely cannot afford. Your broker may urge you to take out a bigger loan than you need in order to make more on the deal himself. Make sure your loan is only for as much as you need and not an exuberant amount.
Brokers are not the only people vying for your business. The relationship between a mortgage broker and wholesale broker is critical. Wholesalers depend on mortgage brokers to bring in business and practice good sales ethics in their dealings with the public.
In the quest for a good mortgage broker, one must be diligent and efficient in their background checking along with being thorough. Once obtaining a broker, one should monitor the activities the broker enters into on the behalf of the client.
The vast offers that the market makes available with variations in terms and programs, sometimes tempts a broker into acting less than honest.
When considering a broker, references and all available public records. Perform a background check and do a credit analysis of the brokers business. These will tell you the type of company or person you are working with.