WORKING WITH A MORTGAGE BROKER
There are many benefits to using a mortgage broker. Mortgage brokers provide options and information to guide consumers through the mortgage application process.
Mortgage brokers are licensed professionals who can identify a large number of lenders and options for you. They do not just work with one lender, which is why they can provide you with a variety of options. In fact, some lenders will only work through brokers. Mortgage brokers assess and compare the proposed mortgages and determine if you meet the lender’s criteria. Mortgage brokers gather whatever information and documents are needed, and make sure all the paperwork is complete and submitted for the lender to approve. They can also explain the application and approval process and answer any questions you may have, and review the rate, terms and conditions of the mortgage.
If your mortgage broker has a service agreement, be sure to read it and discuss the terms and conditions with him or her. It will help you understand the services the mortgage broker will provide and well as any fees, payments or possible reimbursements.
Before agreeing to work with a mortgage broker, you should ask these questions:
- Are you a licensed mortgage associate or broker?
Do you represent the borrower, the lender or both?
Do I need to sign a contract?
What services do you provide and how will you help me?
Do you charge a fee? How will you be compensated?
How many lenders do you work with? Was most of your business done through one lender last year?
