When you are looking for a new home, you browse a number of properties to find that perfect match for you and your family. Once the excitement subsides, it’s time to secure your financing.
You have two options, you can contact your bank and hope they offer loans at the moment or you can contact a mortgage broker, a person who specializes in real estate financing and works with a range of leading banks, financial institutions and credit unions to secure you. The best deal available to meet your budget.
As you begin to look for someone to help you secure the financing you need, it is advised that you speak to family and friends who have recently purchased property in the area. They may be able to recommend an experienced broker they have dealt with, who has secured their financing. Word of mouth is usually the best way to find the best of the best.
Another option is to search online. You will be greeted by hundreds of mortgage brokers who all want to help you get the financing you need to secure your new home. If you choose online, there is some additional research you will have to do to ensure that you will be working with someone who has experience and knowledge in the industry and has a good reputation with their clients.
There are a number of different brokers out there, and some will be tied to specific real estate agencies, some will operate independently, and some will operate in large lending centers that work closely with a number of the major lenders in the country. Try to stay away from the first two and instead choose one who can work hand in hand with a large number of banks and financial institutions to find the funds you need in the shortest period of time.
The mortgage broker should focus on finding you the best possible deal. They may offer you a number of offers, allowing you to choose the one you feel meets your specific requirements.
One of the most important considerations is that they have extensive industry experience and an excellent reputation. You want your mortgage broker to work for you, they should provide you with all the information and advice you need and also provide you with outstanding customer service. This is very important as a first time buyer when you are unsure about the processes ahead.
Determine if they charge any upfront fees. Some mortgage brokers will charge a fee for their efforts. Make sure you are aware of the percentage they charge and how they are paid. Is it advance? Do you have to pay it immediately? This may reduce your down payment a bit, so keep that in mind.
Always do your own research as well, and don’t rely on what they tell you. Even if you choose to use a mortgage broker because they can secure the best deals, contact the banks and see what they are offering now. Don’t accept the first offer that comes to you, by doing some research you can be sure to find the best mortgage with the best interest and terms that fit your budget.
Never assume your loan is safe. Make sure everything is given to you in writing. This should be the offer from the lending institution, the mortgage broker’s fees, and anything else needed for your decision.
With everything in writing, you are ready to go ahead and make an offer on your new dream home with the confidence that your financing should be approved in the shortest amount of time.