When you first decide that you are going to buy a home, you will likely have many questions. One of them will likely be “How do I choose a mortgage broker?” Finding a good mortgage broker can be difficult, so we want to answer this question for you.
Mortgage Brokers vs. Mortgage Lenders
Mortgage lenders loan money to buyers so they can purchase a home. Lenders are also the ones that homeowners pay their monthly mortgage to. Mortgage brokers, on the other hand, are individuals that you can hire to help you find a mortgage lender. They can help find you the best mortgage rate based on your personal information, and they can do a lot of the work on your behalf.
Why Work with a Licensed Mortgage Broker
Mortgage brokers are not required during the homebuying process. However, they can add a lot of value throughout the process of choosing a mortgage. Mortgage brokers can help you understand how much you can afford given your debt-to-income ratio and what interest rate you qualify for given your credit history.
You also won’t have to worry about paying a mortgage broker because they are paid by the lender you end up choosing. Working with a mortgage broker can help you find the best mortgage lender and rate for you.
Choosing a Licensed Mortgage Broker
Having a respectable mortgage broker can make all the difference when buying a home. You’ll want to understand the requirements of becoming a mortgage broker before hiring someone. Most states require brokers to get Nationwide Mortgage Licensing System Certified and complete a certain number of training hours before earning these credentials. You should always ensure someone is a licensed mortgage broker before proceeding with them.
Questions to Ask Your Mortgage Broker
We encourage homebuyers to ask their potential mortgage broker plenty of questions. Here are examples of what we would recommend asking:
- How long have you been in the business? Experience is important in the real estate industry. Asking how long they have been in the business is a good way to judge their expertise. You can also ask how long they have worked in your city or area, because it will indicate how familiar they are with local mortgage lenders and realtors.
- Do you have any references or testimonials? Reviewing a mortgage broker’s testimonials will tell you how satisfied others were with their work. If they can’t provide any references or testimonials, this is a good sign to find someone else.
- How do you communicate with your clients? Asking this question will ensure you know how to get in contact with them when you need to. You can also tell them your preferred communication method. An appropriate follow up question would be to ask how available and flexible they are.
- What documents will I need to have? This is good information for you, but the mortgage broker will also need to review your documents, so they can understand your financial situation and what you can afford.
If you are on the hunt for the best mortgage lenders in Kansas City, First Fidelis, LLC is here to help. Our mortgage brokers help homebuyers in Kansas and Missouri find the best mortgage for them. Call us today at (913) 205-9978 to schedule an appointment with one of our licensed mortgage brokers.