Low interest rates have enticed thousands of Americans to seek funding for a new home or to refinance an existing mortgage. This surge has created a demand for mortgage brokers, whose job it is to help borrower’s complete applications and secure loan rates. It is estimated that brokers process hundreds of billions of dollars in mortgages every year. If you are thinking of buying a home or refinancing your existing one, here are some tips for finding a qualified broker to help;
- Get good references. If you want the help of a mortgage broker, ask friends or a trusted professional at your bank for a recommendation.
- Get an upfront estimate. This won’t be a problem, because federal law requires mortgage broker to provide you with a written estimate of the total cost of your mortgage transaction no later than three days after you apply.
- Be careful about fees. Brokers receive most of their compensation from lenders, who pay them a small commission on the mortgage deal. If you’re asked to pay more than you expected, ask your broker for a detailed explanation of all costs. You may find that you do not need all the services your broker offers.