A mortgage broker is someone who assists potential homebuyers obtain the best possible interest rate when securing a mortgage loan to purchase a house. Rather than going directly to every bank for an individual rate quote, a mortgage broker Adelaide performs the legwork for you by providing several different rates. The first time you meet with a mortgage broker, be prepared for him to ask some questions about your financial situation and about your specific goals for purchasing a house. Because mortgage brokers receive more requests for their services than any other professional, they tend to have a fairly comprehensive understanding of what people in your position are looking for. Here are some helpful tips on how to choose a mortgage broker:
Meet with several lenders. Once you have narrowed down the field of offers you are interested in, you should meet with several mortgage bankers to discuss the different loans they offer and the terms of the different loans. Mortgage bankers can offer you the most competitive rate on the loans that they offer. In addition to comparing interest rates, mortgage bankers will look at the cost of the loans they are offering you and the term of the mortgage, the closing costs associated with the loans, and the ease of the application process or approval of the loans.
Make sure you know the difference between a conventional lender and a mortgage broker Adelaide. While you can usually work directly with either of these types of lenders, you should make sure that the broker you choose has been licensed with the state’s banking department. Because a mortgage broker is not considered a traditional lender, he cannot file his paperwork with the state. As a result, he cannot offer you the same advantages offered to regular lenders. When choosing a broker, make sure that he has experience working with lenders in your state.
Compare lender fees. All mortgage brokers receive fee waivers for the initial application, title, and inspection processes. While these fees are almost always lower than if you went to an individual lender, you should still inquire about them. Often, these fees serve as a penalty for going with another lender and can have you paying hundreds of dollars more over the life of the loan.
Find out if the mortgage broker Adelaide you are considering will offer you options. Some brokers will only work with one type of lender, making it difficult if you have several loans. On the other hand, you may be able to find a mortgage broker who will work with several different kinds of lenders to provide you with the best loan options.
Find out if the mortgage broker will help you get pre-approval for your loan. This pre-approval allows you to work with a larger loan amount before you close the deal. If a mortgage broker doesn’t offer this service, the lender is not giving you their expert advice regarding the appropriate closing costs and loan amount for your particular circumstances. Be sure to ask if they do not offer pre-approvals.