HOW TO CHOOSE A MORTGAGE BROKER
- Written by Melanie Toye, April 22, 2013
Interest rates aid in the decision process when it comes to applying for a mortgage. A few decades ago, loyalty to your lender was generally considered a life time relationship. Now days, the smarter approach is to continually review your mortgage and choose the best option for you. This may or may not include sticking with the same lender. But is service now not as fulfilling as wallets filled with extra cash saved from your mortgage? Well possibly not, but service and kindness also mount up when choosing where to do business in handling your mortgage now and in the future.
How do you choose a great mortgage broker/lender?
Feel that connection – you need to have confidence and trust in your mortgage manager. Although they are delivering you a service, if you don't feel a connection with them, the best approach would be to find someone else. Sometimes your gut feeling is something to listen to.
Seek out referrals - if someone you know recently acquired a mortgage, ask them who they went with and how good the lender or broker was. People will generally give you an honest opinion of their experiences. If you don't know anyone going through that process recently then ask the broker directly for a list of referrers.
Find out their background - how long have they been in the position? Are they working with any real estate agents or have contacts at the banks you are suggesting to sign up with? This helps you recognise close alliances they may have and extra commission for them if they sign you up to a particular deal.
Make the time - allow at least an hour or two to go through your options and brainstorm other options that may work with you. They know a lot of situations that have worked with some of their clients, so taking a different route may work for you that you hadn't thought of before.
Ask them the process - what happens now? Once you agree to go a certain direction, have them tell you what is required from you (i.e. further documentation etc.) and what is required of them and time frames for when each task will need to be completed. Don't be afraid to contact your lender after the meeting if you have further questions that you forgot to ask during the initial meeting.
The important point to remember when choosing a lender, is to meet with a couple and find what they are offering, compare the best deals with your finances, take time to ponder about which direction to go and then move full steam ahead in applying for your mortgage.
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