Using a Mortgage Broker

Shopping for a mortgage can be an intimidating process. If you think you’d like some help, you might consider going through a mortgage broker.

A mortgage broker New Jersey doesn’t actually make loans, but instead helps you find a lender who will offer you a loan on attractive terms. In that respect they function like an independent insurance agent, having contacts with a variety of companies and able to match you up with the one that best suits your needs.

May be useful for jumbo loans or weak credit

Mortgage brokers New Jersey can be particularly helpful if you have circumstances that might make it difficult to shop for a mortgage on your own. You may have a weak credit score, have limited funds for a down payment and closing costs, be in the market for a jumbo loan or simply lack the time to research various lenders on your own.

In those situations, a broker may be able to recommend one or more lenders who will lend to someone in your situation or will offer more attractive terms than other lenders might.

You do have to pay for this service, of course. In most cases, the broker’s fee is rolled into the loan itself, either in the form of a slightly higher interest rate or added to the closing costs. You can save money by finding a lender on your own, but that depends on whether you have the time or inclination to research various lenders to find the best deal.

Finding a broker

So how do you find a good mortgage broker New Jersey? The best way, of course, is by personal recommendations from family and friends. Failing that, look up several in your that seem to specialize in loans for borrowers in your circumstances and contact them by phone. Eliminate any that seem unprofessional, don’t give you straight answers to your questions, try to pressure you in any way or who you just feel uncomfortable with.

Of the others, pick a few and meet with them at their offices – don’t let them come to you. You can tell a lot about a broker’s operation by the way their office is run- does it seem professional, courteous and efficient? If a broker doesn’t even have an office on the other hand, that may be a sign they’re new and inexperience or simply haven’t been able to generate enough business to afford one.

It’s also a good idea to look for a broker who is a member of the National Association of Mortgage Brokers (NAMB), which certifies mortgage brokers and demands that they adhere to certain ethical standards. The NAMB has three levels of certification, being general mortgage associate (GMA), certified residential mortgage specialist (CRMS) and certified mortgage consultant (CMC), in ascending order.