The last blog ended talking about making sure you find the right broker, but that leaves the question, how do you know who is the right one? You may not believe this (or want to believe this) but most of that responsibility is on you. Truth be told, you’re likely headed for trouble if you enter into the mortgage hunting jungle thinking the broker is your guide. He’s not. He is there to make money, and if you are not going to help him, he is not going to help you. It’s really simple.
Check your credit score and credit report, and get things cleaned up before starting the broker discovery process
The reason for this is pretty obvious: it saves them time and they will know that they won’t have to babysit you throughout the process. If you want to find the worst broker and increase the chances of having the highest rates and impossible terms, go into the process with the mentality that they will do everything for you. The worst ones will – and it will cost you scads of money in the long run.
Take the time to learn the terminology
You don’t have to become an expert, but knowing the difference between the interest rate and APR. It usually is small, but over the course of a 30 year mortgage small will add up quickly. Besides, when you go in to talk to a broker and you sound reasonable intelligent about things, they won’t have to explain every little detail to you. Make their lives easier and it is likely the best brokers will appreciate it and work hard to find you the best deal.
The logical continuation from #3 is to keep looking
Shop around. Though you may be itching to move into a new house, don’t treat it as a race to the finish. That is a sure way to finding yourself paying more, and that “more” will last as long as 30 years.
Be aware of current market conditions
Sometimes the interest rate on a mortgage will differ based on location, but you can use the Internet to find out what the national average is for your general situation. If the offer you’re getting is too high, then you know you need to keep looking for a quality broker.
Use the “preapproved approach” and get a specific number to compare with other mortgage brokers
Don’t just look at the numbers but the total package of fees, terms, and conditions being offered. Getting the best deal is usually a situation which is give and take. You may not get everything you want, but by getting preapproved offers you will better know what you are signing at the end.
The short version of these tips is that the more you come off looking like you have a reasonable knowledge of what you are getting into, and not being too dependent on your potential mortgage broker, the better your chances are of finding the best broker. And again, take things slowly.