The mortgage market is large with banks, lending institutions and investor groups competing for your business. Add mortgage brokers to the mix and it might feel like finding a mortgage is a baffling process. However, a good mortgage broker should be someone that helps you navigate the market, not complicate your perspective. If you’re looking for more tips, North Perth Mortgage Broker Association has it for you. Here are seven tips on finding a good broker.
1. Shop around. You are entering into a business relationship. Just as you would research other professional services, don’t hesitate to talk to several mortgage brokers. This is the best way to get to know them and the packages they offer. Simply tell them that you are doing research so it is clear that you are not yet committed.
2. Access your own credit records. Before embarking on a meeting with various brokers, pull your own credit report. This means that your credit score will not be accessed several times by different brokers. Accessing your credit report multiple times can actually weaken your credit history.
3. Be sure they are certified. Mortgage brokers need to write qualifying exams that, in turn, certify them as a broker. Certification varies across countries and provinces. Do your research to ensure that any broker you take the time to meet has met the legal requirements to call him/herself a mortgage broker.
4. Know both the broker and their company. Mortgage brokers can work independently, or they represent a company. Sometimes, brokers may even represent a bank. Investigate their background so that you can be sure you are offered a package that is right for you versus a product that their company or bank is trying to sell.
5. Find out how the broker earns their money. Up front, ask the broker to show you how they are paid. This way, you have an understanding of all the transactions that they help you with. Be wary of brokers who require you to provide money upfront.
6. Debate their method. Do not be afraid to discuss the method that the broker uses in order to make a recommendation. Mortgage brokers will make commission on certain products and may encourage you in this direction. Understanding their formula will help you uncover a broker who is working in your best interest.
7. Seek out those who want to learn more about you. Just as a doctor would not make a diagnosis until he or she understood your condition and all your symptoms, mortgage brokers should have a clear idea about your situation. Be wary of a broker who is keen to offer you loan packages right away. Ideally, they should be fully apprised of your goals and circumstances before seeking out a mortgage that best suits you.
8. Put them on the spot. When you are interviewing brokers, do not be afraid to ask them what sorts of packages are currently available or will be in the future. A good broker should be up-to-date on current packages and rates. They should also have a finger on the pulse of what institutions might be offering in the future.