Top Question to Ask So Not to Get a Bad Mortgage Broker

Mortgage brokers can be an invaluable part of your home buying team. These professionals can help you clearly define your short and long-term goals, prepare your financial profile for exhaustive loan application reviews and locate the right lenders, loan terms and features. In order to choose the best broker for these efforts, however, there are a few key questions that you should make sure to ask. To find that perfect Mortgage Broker for Greenville SC visit:

1. How are you paid?

There are two ways in which mortgage brokers are paid for their services. Typically, these professionals represent the interests of a handful of lenders who they promote to borrowers. After having successfully brokered a deal between a borrower and lender, the broker will then receive a commission from the Yield Spread Premium on the loan or the YSP. This is known as back-end compensation. With front-end compensation, mortgage brokers are paid outright by borrowers through direct fees or points. In either case, the broker will ideally be representing the best interests of the borrower at all times, whether recommending lenders or funding products. Paying for these services outright, however, eliminates the fear that a broker may be driven to recommend specific funding offers, based on the commissions that these might produce.

2. Why aren’t these rates available in other places?

Brokers often lure people in with promises of below average interest rates. While access to these rights might be due to strong relationships with some of the top-performing lending institutions, it can also be indicative of hidden fees. Take some time to find out whether or not these fees exist and what they are. This could help you to sidestep substantial loan origination fees.

3. How long have you been in business?

There is currently a very vast array of mortgage products available. You want to hire a broker who has a comprehensive understanding of each one of these. A seasoned professional will not only be able to match you up with funding products that are best-suited to your financial abilities, needs and goals, but this person will also have the ability to offer tips on how to qualify for these products. Experienced brokers recognize the value of creating lasting relationships with their clients and of remaining viable and helpful parts of their purchasing teams. Whether you intend to pay for these services out of pocket or want to work with brokers who are willing to accept back-end payments, it is vital to ensure that you are getting the level of service and support that you deserve.

4. What resources do you have available?

This is an especially important question for first-time buyers. The goal of every good broker is to educate consumers on their options, make knowledgeable recommendations and help people make informed decisions on their own. They do not pressure their clients into pursuing funding offers, even if they believe these options to be best. With a wealth of informational resources available, a broker’s clients can get a full understanding of their forthcoming ownership costs, their available loan options and more. Access to these resources is a sign that brokers are committed to guiding people through this process rather than attempting to force their hands.

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