Home mortgage refinancing – choosing a broker
Even if you have a friend or brother-in-law who is a mortgage broker, they may not be the best choice for your mortgage refinance package. The true test of a good broker is one who works with you throughout the process and one who isn’t willing to push you into a loan that isn’t right for you just to earn a commission on the deal. Still, it’s hard to know how a broker will perform until it’s too late. Here are some tips to help you decide which loan broker you want to represent your interests in your mortgage financing package.
When looking for a broker to handle a home mortgage refinance package, one of the first things you should review is the broker’s reputation for honesty, integrity, professional standards and fair dealing with clients. Make sure you understand who the broker is working for. These are usually the lenders. The broker receives a commission for granting loans. His or her income depends on the loan sale. Some brokers will try to get you into a specific mortgage loan or refinance package, even though it may not be the best fit for your financial situation.
If you are looking for a broker to prepare your home mortgage refinance package, a referral from a trusted friend, neighbor, colleague or family member is a good broker recommendation. You can also check online sites like the Better Business Bureau and forums where complaints can be filed against businesses or individuals. In this case, the lack of news is good news. The due diligence you do before selecting the broker to represent your interests can mean the difference between a positive experience and financial disaster.
A number of elements are included in the total cost of a home mortgage refinance package. Your broker should be prepared to list and explain each of these costs, including those related to the broker. Be aware of charges that appear to have different names for the same type of service. Ask those you are unsure about for clarification. Some of the costs included in the loan documents may be negotiable, so ask if you’re so inclined. If something seems strange, you always have the option to choose another broker and start over.
Experience in the local market
When putting together a home mortgage refinance application, be sure to look into local experience when choosing your broker. Although realtors in big cities may be very good at what they do and may have extensive experience in structuring residential mortgages, they may not be at all equipped to handle a refinance package for a rural farm located on 140 acres of land. Even if the advertising and interest rates sound great, it may be better to approach a local loan broker who is familiar with the specifics of the local geography, economy and growth patterns.
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