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The real estate market is HOT, HOT, HOT. It’s truly a seller’s market with the price of homes rising nearly 25% throughout the country. If you’re looking into buying a house in this busy housing market, then you’re going to need all of the help you can get. One of the best pieces of real estate advice you’ll receive right now is to find a mortgage broker to help you with your search.
Not familiar with mortgage brokers? Read on to learn all about them!
What Is a Mortgage Broker?
A mortgage broker is a person who helps home buyers connect with potential lenders. They perform all the tasks you would ordinarily do on your own, like comparing interest rates between lenders and presenting your options to you.
The best mortgage brokers work with a number of lenders on a regular basis. This means they have a lot of insight into how the mortgage industry works and can make it easier for you to qualify for a loan you can afford. Expect your broker to gather all of the necessary documents from you, pull your credit, and perform an income verification.
Mortgage brokers are fully licensed and regulated, giving potential buyers peace of mind.
How Do They Get Paid?
The best part of hiring a mortgage broker is that you don’t have to pay them to perform their services, but you do have that option.
Most mortgage brokers are paid by lenders, and their pay is regulated by the Dodd-Frank Act. This piece of legislation prevents brokers from charging customers any hidden fees or using the borrower’s interest rate as the basis of their compensation from the lender.
You can pay the lender yourself if you prefer. Fees are competitive, typically 1% to 2% of your home’s loan. Don’t be afraid to contact multiple brokers to ask how much they charge in fees.
How Do I Choose a Mortgage Broker?
There are many different ways to choose a mortgage broker, but the most reliable way is to ask trusted friends and relatives for recommendations. Ideally, the person recommending the broker has actually used their services and can tell you about their experiences with them.
You can also ask your real estate agent for recommendations. Many agencies have their own brokers in-house, but you can use any mortgage broker you want in order to secure financing. Plan on speaking to at least three or four potential mortgage brokers to learn if they’re a good fit for your needs.
Are You Looking for More Real Estate Advice?
Any time you start thinking about buying or selling a house, you’re bound to get a lot of real estate advice from friends and family alike. One consistent piece of advice you’ll hear is to hire a mortgage broker to help you secure financing for your new home. It’ll make you feel more confident when buying a house, and the process will be much easier!
Do you want more awesome advice about everything from real estate to business? You’ve landed in the right spot. Scroll through our blog to find all the information you’re looking for!