Best Mortgage Brokers

Figuring out the mortgage process can be one of the most confusing and daunting aspects of buying a home. To help you find a mortgage that best fits your needs, there are independent contractors, called mortgage brokers, whose job it is to scour available loans to find what best fits your needs. A good mortgage broker can help you save a lot of money.

Where Do You Find a Mortgage Broker?

Going to people you respect for referrals and recommendations are one way to go about finding the best mortgage lender. For example, real estate professionals and tax advisers have a reputation to uphold because they do a lot of business in your area. But, do not blindly accept someone's recommendation without finding out why. This is because in the real estate trade there are many "you scratch my back and I'll scratch yours" arrangements to watch out for.

You can find mortgage brokers in your area who have agreed to a strict code of ethics by going to the National Association of Mortgage Brokers (NAMB). Also, be wary of mortgage brokers that reach out to you and are incredibly pushy. There is usually a good reason why they are so desperate to have you as a client. You do not want to find out.

How Do You Know a Broker Is Right for You?

You should always do a little vetting before going with a specific broker. Check to see if they are registered with the Better Business Bureau in your area. Find out if there have been any complaints lodged against the broker. Have these complaints been addressed? Also, find out if the broker is with NAMB and see what accreditations they have. Finally, you should also ask the broker some questions. Some questions you should raise:

"Are Federal Housing Administration (FHA) loans among your offerings?" - FHA loans are government loans designed to help people buy their first home. You want to be sure a broker meets the requirements to offer these.

"Which real estate agents do you work with?" - This will tell you if the broker is trusted by a wide range of local agents.

"How many lenders do you work with?" - In order to find the best mortgage, you want to find a broker who represents a broad range of lenders.

"How long have you been in the business?" - This will tell you if they have the experience to get you great deals.

Also keep in mind that the best mortgage brokers out there also function as financial planners for you. They want to match you to a mortgage that takes your goals and total financial situation into account, so your new home will be a blessing and not a curse. You can tell if a broker has the financial planning mindset if he is reluctant to give blanket answers to your questions. Instead, he will answer questions about your situation using numbers and figures. In conclusion, you want to be sure the mortgage broker communicates with you every step of the way. Follow these tips, and you will save tens of thousands of dollars on your home.

The single biggest mistake new home owners make is not picking the correct lender for their mortgage loan. Because your loan is typically for 15-30 years, a small misunderstanding in your loan terms can lead to a financial pit fall. It pays to spend some time and find the best mortgage lender. Be sure to ask for references from friends and family and always read the fine print before signing. This is a decision you will need to spend some quality time on in order to get it right.