5 Questions to Ask Your Mortgage Broker
According to The Wall Street Journal, a boom in the housing market led lenders to issue a staggering $1.61 trillion in mortgages in 2021. These lucky homeowners had the pleasure of working with mortgage lenders and mortgage brokers, and sometimes both.
Most people confuse them, but the two really have different roles to play in the home-buying process. Mortgage lenders are financial institutions, like banks, that can directly lend funds. You have to provide documents, fill out an application, show proof of income and debt information, and wait for their approval for financing.
Each lender may offer a different combo of annual percentage rates (APRs) and closing costs, so a borrower may want to shop around before committing to one lender. In that case a mortgage broker can act as an intermediary between the borrower and various lenders in the market. Unlike mortgage brokers, mortgage lenders decide whether you qualify for the loan.
If you want to minimize the hassle of going back and forth from one lender to another while determining which loan is the right one for you, contact a good mortgage broker to shop around and get the best deal. Ask your mortgage broker these five important questions to help them find the best deal for you.