E-mailWhat is a Mortgage Broker?
What is a Mortgage Broker?
A Mortgage Broker works for you – not the banks and not the real estate companies.
A Mortgage Broker, like an Insurance Broker, is an independent intermediary that matches the right lenders (individual investors and/or lending institutions such as banks and credit unions) with the ideal borrowers. His or her job is basically to find you a mortgage loan with the lowest possible interest rate. A knowledgeable, experienced broker with a proven track record:
- Shops your mortgage aggressively to get the best possible deal for you
- Has access to a wide variety of lenders and knows the kinds of investments they prefer
- Knows the intricacies of virtually every mortgage product available on the market
- Keeps up-to-date on the latest products, trends and strategies
- Is familiar with the laws and procedures that apply to mortgage transactions
- Knows how credit scores,
downpayments
and other factors affect interest rates
A Mortgage Broker can save you literally thousands of dollars in interest payments and at the same time take the worry and stress out of transactions. He or she should be your trusted consultant – someone you can depend on to give you the best advice possible.
When mere fractions of percentage points can mean the difference between saving or losing thousands of dollars in interest over time, it’s good to have the experience and objectivity of a professional Mortgage Broker on YOUR side.
Three questions to ask your Mortgage Broker about a Mortgage Company
Mortgage Company Query #1: Are there similar products that are better?
The reason you want to ask your Mortgage Broker this question about a mortgage company is because you want to know if you are getting the best product for your particular situation.
Mortgage Brokers are usually paid on commission. So, they are courted heavily by mortgage companies to promote certain products over others. For this reason, while a mortgage company can be great for a Mortgage Broker (because it may mean a bigger commission), it may not be the best option for you.
Ask your Mortgage Broker for one or two other options similar to the one that the mortgage company is presenting to you. This way, you can make the best decision for your financial situation.
Mortgage Company Query #2: How long has this product been available?
New mortgage products come out all the time. Sometimes they become mainstream products but many times, they disappear from the market altogether.
If a mortgage company presents a fairly new product to you, ask questions about it. You’ll want to find out
- Why it came into existence
- How widely it’s being used
- Who uses it
- What are its advantages and disadvantages
- If a similar, more trusted product is available
Finding out the most you can about a mortgage company product being offered to you is the only way to make the best decision about it. As a mortgage is probably the longest financial relationship you will ever foster, don’t be afraid to ask your Mortgage Broker some hard questions about it.
Mortgage Company Query #3: Who originated this product?
One of the first questions you should ask about any mortgage company recommended to you is who is behind the product. Is if from a major bank, the government, a new financial institution, etc. This is important because you should know about the financial solvency of the company behind the mortgage.
As mortgages are an evergreen industry – and one with the possibility of great financial gain – many companies enter the market every year. So make certain you deal with a company who knows the industry and has a proven track record.
Advice on avoiding a mortgage company
Reference Check
To avoid getting a mortgage company that may not be best for you, check with your Mortgage Broker. Ask for a few references from satisfied customers and check them also.
One of the main questions you want to ask previous customers is if they felt pressured to choose one mortgage product over another – and if they were 100% happy with the mortgage they finally got.
