As you contemplate the awesome responsibility of becoming a homeowner, there are certain issues that you cannot afford to take for granted. Chief amongst them is finding a local mortgage agent to help you with your home buying process.
Here are the tips to guide you finding a dependable and professional local mortgage agent.
Mortgage Broker vs. Mortgage Lender
It is imperative that you understand exactly what you have and what you need for you to become a homeowner. When you have determined your current standing, the next step is to determine whether you are going to work with a mortgage lender or mortgage agent. What’s the difference between the two? A mortgage broker is more of a middleman between the mortgage lender and potential borrower. The primary objective of the broker is to help potential borrowers gain access to the right mortgages at the best possible rates. Brokers earn from charging broker fees or origination fees; payable at the closure of the deal.
On the other hand, a mortgage lender refers to the actual organization providing the funds for buying the home. Banks or credit unions are good examples of mortgage lenders. When you have decided whom you want to run with, move to step number two.
Ask Around for Recommendations
Ask families, colleagues and friends whom they have sold or purchased with in the recent past. The same also goes for finding local financial advisors, agents and brokers. Working with a local mortgage agent is that they already have the necessary connections and access to lenders and brokers you need to complete the purchase. Local mortgage agents also have extensive knowledge of the real estate sector and thus your deal will be closed twice faster than with a newbie agent.
Understand the Various Fees Levied
Completing a mortgage application should not be a thing that you rush into without gaining a deeper understanding of the fees charged. There are many costs associated with home buying. Majority of these costs directly arise out of the mortgage lender or broker. Ask your mortgage lender or broker to give you a proper breakdown of appraisal fees, rate lock fee, application fee, originating fee and underwriting fees.
Don’t Forget to Ask These Questions
It is important that you ask the prospective real estate the right questions that will give you a lead during the home buying process. Furthermore, asking the right questions gives you an upper hand and thus ensures that you have the best experience.
Here are the questions that you should not forget to ask:
- What are the current interest rates?
- Which mortgage product works best for my case?
- Can I have a breakdown of all the costs?
- What’s the nature of the documentation process involved?
- How do you process your loans; third party or in-house?
- How long do I have to wait before the loan is processed?
- How many loan products do you offer?
Buying a house is fun and quite fulfilling. However, the success of this process is independent on the type of local mortgage agent or the local financial advisor you contract to help you. Use the above check list to hire the right agent.