Looking for a mortgage professional can be a very daunting process, especially for first time homebuyers. There can be many unfamiliar terms and questions regarding the processes and the proper steps to take.
Who can provide the answers to your questions?
Searching the Internet may get you some of the answers, however, you may have more questions after reading different websites.
Should you work with a retail bank or a broker?
The first thing you should pinpoint when looking for mortgage professionals is what you want and what’s perfect for you.
Brokers work with many wholesale lenders and can shop programs and rates depending on each persons financial situation and needs. Many wholesale lenders tend to compete for a brokers business which often results to better pricing.
The brokers only receive compensation after a transaction is closed.
The mortgage professionals at the retail banks offer mortgage products and the rates that will be only offered by the retail bank. If you would like to compare products and rates, you will have to stop at a different retail bank and speak to a different person.
One of the most important steps of finding a proper mortgage professional is to talk on the phone, or have a face-to-face communication, and find out if this person will be available to you when you have questions before, during, and after the process.
All mortgage professionals are required to obtain an NMLS number since 2010. You can look them up by going to (http://nmlsconsumeraccess.org/). It will show the history of this individual as well as the associated company.
Prior to 2010, all the mortgage professionals in CA required a real estate license. You can go to Department of Real Estate (http://www.bre.ca.gov/) to verify how long this person has been in the business.
Experience can be crucial since the mortgage market rules and regulations can be very confusing. Having someone who has had a longtime positive history and experience in this business can really work in your favor.
Once you have a couple of professionals in mind, present your situation in all honesty and evaluate the options offered by them, such as rates, fees and terms.
Obtain a Loan Estimate detailing the loan amount, terms, rates and fees to compare apple to apple.
Keep in mind that the interest rates are always on the move depending on market fluctuation until the interest rate is locked in. If you were to receive the estimate on Monday, the second estimate sent over from Wednesday it may show different numbers.
It is highly recommended to ask questions after reviewing the numbers.
That’s again, why it is imperative to find a mortgage professional who can answer your questions immediately. Use this to set a basis for the lenders you compare.
When you finally decide on one trusted advisor, your search should be over. There are some rare occasions, when a situation arises making you uncomfortable. Should you have concerns after discussing with your chosen advisor, it may be time to start your research again.
Hope these tips give you a successful experience looking for the right person to work with you.