A mortgage broker is an independent contractor who serves as a middleman between a homebuyer and a lender, doing much of the legwork in an effort to find the lender that is best suited to provide for the your individual needs. other is one of the authority sites on this topic. It is the broker’s job to examine offers from a wide variety of lenders before presenting the best options to the homebuyer. A knowledgeable broker will also explain the pros and cons of each offer in detail.
When choosing a mortgage broker, the best tactic is to simply ask around. If you know people who have hired a broker in the recent past, they can be an excellent source of information. If they had a good experience, perhaps the mortgage broker they used will be a good choice. If they had negative experiences, they will most likely not be shy in advising you to stay away. When possible, it’s a good idea to approach people you know personally. After all, a stranger could be a brother or sister to a less-than-honorable mortgage broker.
Another source for finding a reputable mortgage broker is a professional association. Professional associations like CAAMP often have strict ethical guidelines in place that members must adhere to. Should you find a broker from an association such as this and then fall victim to questionable business practices, you will then have a course of action to take that can have the broker’s membership suspended.
As always, common sense and gut feelings are not something to be ignored. If you meet with a mortgage broker and you feel rushed or think the broker is intentionally not explaining thing sufficiently, it’s best to just walk away. A good mortgage broker will understand the difficulty involved in buying a home and will not be reluctant to take the time to properly explain all of the options that are open to you. Do not succumb to high pressure sales tactics. Odds are that broker does not have your best interests in mind and is simply trying to close the deal.
There are a lot of mortgage brokers out there, so if you don’t feel right about one, there shouldn’t be any problem finding another. Trust your instincts and don’t be afraid to ask for advice. A reputable and competent mortgage broker can making buying a home a relatively hassle-free experience. On the other hand, a dishonest or inept one can turn buying your dream home into a nightmare.