What to Expect from a Mortgage Broker

What to expect

A broker New Jersey should interview you about your mortgage needs and present you with a variety of options, which he or she should be able to explain in detail. Avoid brokers who give incomplete answers or try to push you toward one particular option without exploring alternatives. Also, don’t sign anything committing yourself to working with just that broker – you’re entitled to work with as many different brokers as you wish, and don’t have to commit to any until it’s time to actually submit a mortgage application.

Be aware that some lenders are reluctant to work with mortgage brokers New Jersey these days, because some brokers had a tendency to steer risky clients to them and hide their shortcomings. That’s another reason it’s important to find a reputable, professional broker – the good ones will still have their relationships with lenders intact.

You should also be aware that a broker is not necessarily obliged to look out for your best interest. In some cases, brokers have been known to steer borrowers to loans that were more profitable for them, rather than beneficial to the borrower. That’s why you have to stay on top of things by asking the right questions and preferably obtaining mortgage offers from several different brokers.

Ask about compensation

In particular, you should ask a broker how they get paid and what their compensation is for a particular loan – and does it differ from other loan offers you might consider. Other questions to ask include what is the APR (annual percentage rate) on a loan, what are the closing costs and any other fees that might be included.

If you’ve got a credit rating of 780 and can put 30 percent down on your home purchase, you probably won’t need a mortgage broker New Jersey – you can likely find a lender who’ll offer good terms on your own. But if you don’t fit the ideal borrower mold or are looking for a jumbo loan or have other special requirements, going through a mortgage broker may be the sensible thing to do.