You should have your first conversation with a mortgage lender six months before you plan to buy a home. Based on their knowledge of the mortgage market and on established relationships with lenders, brokers work to ensure the terms and rates that are most beneficial and profitable for you. You'll need a reliable map (or, in this case, a mortgage broker) to guide you through uncharted territory and get you to your destination without problems. Sometimes, instead of the borrower, it's the lender who has to pay the mortgage broker, and this will certainly be included in your loan offer in some way.
Both mortgage advisors and mortgage brokers help borrowers navigate the mortgage process, keeping their loan up to date from loan estimation to pre-approval, through underwriting and conditional approval, and finally to closing the loan. Mortgage brokers are financial brokers, linking you to the right mortgage product from a variety of lenders. Therefore, it's important to get a private quote from at least one lender before starting the search, so you can compare how much you'll have to pay without a mortgage broker and how much you'll have to pay if you sign an offer with the help of an advisor. You can also use this as an indicator to know if you've hired a good mortgage broker or if you should start looking for another one. A good runner will help you get things going and set you up for success, no matter what stage you're at.
A broker evaluates your financial situation, your creditworthiness and your long-term objectives to find the right mortgage options, whether fixed or variable rate, and makes sure to negotiate conditions that meet your specific requirements. Enlisting the participation of a mortgage broker at this stage will help to move the process forward, as they will take care of the documentation and important details. Well, it's not too late (in fact, it's a good time) to get in touch with a mortgage broker, as they can find a good mortgage loan for you before you start raising your hand at an auction. Since the ordeal of the global financial crisis, mortgage brokers still haven't completely lost the bad reputation they earned with the subprime mortgage disaster. Homebuyers who are in a unique financial situation (they are self-employed, have inconsistent or non-W2 incomes, or have poor credit) are often the best people to see a mortgage broker.
A mortgage broker is like that travel agent who finds the perfect getaway that fits your budget and your tastes. As you search the Internet and try to read everything you can about mortgages, you won't stop finding jobs that include mortgage advisor, mortgage broker or even mortgage consultant. You can go directly to your bank or credit union and use a specialized mortgage company or online lender, or you can ask a mortgage broker to do everything for you.
