What You Need to Know About Mortgage Brokers Before Choosing One

It’s no secret that first-time buyers, as well as seasoned vets, choose to go with a mortgage broker to purchase a home because the broker will navigate the minefield that is mortgage options. The broker will act on your behalf and shop around with different lenders to see who can offer the best deal, given your financial situation.

How can you find a good broker?

To start, you could ask around for recommendations, like from your real estate agent or other homeowners. Maybe aim for someone that is experienced with customers like yourself, like if you are a first-time buyer. Once you have a couple ideas, you can check for online reviews on sites like Zillow or Yelp. For example, if you live in Chicago you could search for Lombard Mortgage and see who has the best feedback.

So what exactly does the broker help with?

How do brokers make money?

The majority of brokers generate profits by marking up the price of the loan from the wholesale lender. They may disguise this by giving it a different name like a processing fee. At the end of the day, the profit of a broker is typically coming from your pocket, so you should always attempt to negotiate the pricing. The caveat is that the broker should be able to find a much greater deal than you are able to, and save you much more money than the broker would charge in fees.