How to Choose a Good Mortgage Broker with 6 Ways Key Takeaways
The mortgage broker market share reaches an all-time high in the year 2022 with a mark of 69.5%. The current annual weekly average mortgage rate is 6.56%. Data shows that $2.75 trillion in mortgages originated in 2022, compared with $4.51 trillion in 2021. A home finance intermediary operates as a mortgage professional specializing in optimizing mortgage terms for clients. Rather than physically approaching multiple lenders and requesting rate quotations, you can engage the services of a mortgage intermediary to handle the groundwork on your behalf.
They act akin to relationship facilitators, identifying the ideal lender offering competitive interest rates and cost-saving policies to match your specific financial needs.
Recommendations From Friends and Family If you happen to know individuals within your social network who own homes, there’s a significant probability that they’ve had interactions with a mortgage broker in the past. You can engage in conversations with them regarding their experiences and inquire if they would endorse the services they received.
Usually, people who are close will offer candid feedback. They may also give details about the personality and professionalism of a broker, which can play a big part in the decision.
When asking for recommendations, always ask if a broker puts the needs of the client first. The last thing one wants is to hire a broker who will push certain loan options or lenders, even if they feel a different option serves the best.
DID YOU KNOW? These statistics are from MFAA’s quarterly survey of leading mortgage brokers and aggregators in different periods. This infographic shows the mortgage broker market share reaches an all-time high in the year 2022 with a mark of 69.5%,
Get Referrals From Real Estate Professionals A professional in the world of real estate can offer valuable assistance in your quest for a mortgage broker. Their insights likely encompass your specific loan prerequisites and the type of property that piques your interest.
It is conceivable that a real estate agent
Real estate agents will always recommend the brokers for their own interest. The faster a broker can close a loan, the faster a real estate agent can close the sale, meaning they get their commission faster.
Go Whole-of-Market You have a range of options when choosing a mortgage broker. Ideally, you want to find a broker who is described as whole-of-market. Whole-of-market brokers like Tassie Home Loans often have access to all mortgages available on the market at any given time.
Other brokers, on the other hand, can only offer mortgages from a select panel when others are linked with certain banks or financial institutions. A whole-of-market mortgage broker offers you more options making it easier to find the best deal.
Compare Rates An extra expenditure is involved in conjunction with a mortgage when enlisting the services of a mortgage broker. The primary objective is to secure the most favorable arrangement, ultimately leading to cost savings. Nevertheless, it remains noteworthy to assess and contrast the fees levied by various brokers to optimize savings when ensuring the maintenance of service quality.
Look at how a mortgage broker prefers to be compensated. Some expect an upfront payment whereas others get paid once you agree on a mortgage deal. Some brokers use a combination of the two. Make sure to find one that offers a payment option that is preferred and comfortable with. If a broker gets paid by the mortgage lender
Annual weekly average Annual high Annual low 2012 3.66% 4.08% 3.31% 2013 3.98% 4.58% 3.34% 2014 4.17% 4.53% 3.80% 2015 3.85% 4.09% 3.59% 2016 3.65% 4.32% 3.41% 2017 3.99% 4.30% 3.78% 2018 4.54% 4.94% 3.95% 2019 3.94% 4.51% 3.49% 2020 3.11% 3.72% 2.66% 2021 2.96% 3.18% 2.65% 2022 5.34% 7.08% 3.22% 2023 6.56% 7.23% 6.09%
This table shows the history of mortgage rates from the year of 2012 to the year of 2023.
DID YOU KNOW? Data shows that $2.75 trillion in mortgages originated in 2022, compared with $4.51 trillion in 2021.
Compare Services The fees may be significant, but there is no benefit to saving money if you get poor services. Some mortgage brokers run their business online and will conduct the whole mortgage process and offer recommendations completely online.
There are also those who prefer doing things the traditional way and will arrange face-to-face meetings and phone calls to discuss different aspects of your mortgage. Think about what is best for you before hiring one.
Availability The timetable you maintain will influence your choice when seeking a mortgage broker. Before committing, ascertain the promptness with which they can initiate the case. Ensure this aligns with your specific timeframe for application completion.
Inquire about their availability hours for consulting, establishing a broker’s willingness to accommodate a schedule. A proficient mortgage broker should readily adapt to availability. If the weekdays are hectic, seek a broker who can rendezvous during the weekend, a period with fewer commitments.
Endnote A mortgage broker facilitates the discovery of optimal terms for your new home purchase, offering access to a multitude of lenders. Prudent assessment of any prospective broker is imperative before cementing your hiring decision. Follow the aforementioned suggestions to ascertain the right fit tailored to your requirements.
