When you’re ready to purchase your first home, you may be wondering how to find an independent mortgage broker near me. Mortgage brokers provide valuable guidance throughout the mortgage process. You can think of them as a one-stop shop for all of your home financing needs. Here’s how to find the right one!
6 tips on finding the right independent mortgage broker
So, you’re ready to buy a home, but you don’t know where to start. First step: finding an independent mortgage broker near me. We’ve got six tips on how you can find a qualified mortgage broker that will help guide you through your home-buying process. If a local lender is what you need, here are some ways of finding one in your area and getting your credit for preapproval!
Before you start your search
Before you start shopping around for a mortgage broker, make sure you’re ready to buy a home. Have all your documents in order, save up enough money for a down payment, and get preapproved by a lender. Getting pre-approved will help with your search because it means you have fewer limits on what type of loan you can get. This process also will give you a better idea of how much home you can afford!
Shopping for your mortgage
First, decide what type of loan you want: fixed or adjustable. Then, start shopping around. An independent mortgage broker will help you find a lender and get a pre-approval letter so you can start looking for homes. But with more than 13,000 lenders nationwide, where do you begin? Start by finding a qualified independent mortgage broker near me who can guide you through your options.
Choosing between different types of mortgages
One of the first things you’ll need to do is decide which type of mortgage is right for you. Two primary kinds are fixed-rate mortgages and adjustable-rate mortgages (ARMs). A fixed-rate mortgage has a set interest rate throughout your loan term. While that means you won’t have to worry about rates increasing, it also means that if rates decrease after you lock in your loan, you might miss out on those savings.
When do I need to talk to my lender?
Finding a mortgage broker can seem daunting, especially if you don’t know what you’re looking for. The good news is, there are tons of different brokers and lenders out there that are ready to help – and it’s not your job to sort through them all. However, there is one thing you need to do before talking with anyone about getting a mortgage: Find out whether or not they work with independent mortgage brokers near me. Why?
What happens when I take out a loan?
You don’t have to find an independent mortgage broker near me for every aspect of home ownership. There are things you can handle on your own, like getting utilities set up and buying appliances. However, there are also some decisions you shouldn’t make without help from someone who has experience in home loans.
Understanding interest rates and points
Understanding how mortgage interest rates and points work will help you get a better rate on your loan, which saves you money in monthly payments. With points, you pay a one-time fee for each $1,000 borrowed—and it gets subtracted from your mortgage loan amount. So if you paid two points on a $100,000 loan at 3% interest over 30 years, it would cost $2,000 upfront.
Does my down payment matter?
When buying a home, your down payment matters. Some loan programs require you have more than 3.5% of a down payment to qualify for that loan program. You need to know what types of loans are available and which may be right for you and your situation. This will help you avoid high-interest rates and monthly mortgage payments that could cause financial strain on your household budget each month. We can help!
How do closing costs affect my final loan amount?
When you apply for a mortgage, you’ll likely hear about closing costs. These are non-refundable fees that are due when you close your home. Different lenders charge different amounts of closing costs, so shop around and make sure you know what fees to expect before choosing a lender. Check with your local government for incentives or tax breaks that could help lower these costs.
Will my bank use an appraiser?
Your bank should help you find a qualified appraiser for your mortgage. If it doesn’t, you can ask around for recommendations—most of them are listed on state and local real estate organizations’ websites. After choosing one, make sure he or she is registered with state regulatory agencies.
Getting pre-approved vs getting approved at the application
It’s important to be pre-approved for a mortgage before you start house hunting. Getting pre-approved means that a lender has looked at your financial situation and agreed on a specific loan amount with you, ahead of time. Getting approved at application means that a lender has analyzed your finances during their due diligence after having accepted your offer for financing—but it could result in higher interest rates or fees. When considering how to find an independent mortgage broker near me, make sure you’re getting pre-approved!
Working with your lender through closing day
If you’re working with a mortgage broker, they will help guide you through every step of buying a home. However, there are several steps in which lenders will not participate. Lenders have no control over conditions such as appraisals or property inspections. When these issues arise, your mortgage broker will likely notify you and figure out alternative solutions for getting your loan closed quickly.