A real estate attorney in Sonoma County will tell you it’s a good idea to talk to a mortgage broker when you need a mortgage. Mortgage brokers have many contacts within the financial system, as well as a detailed knowledge of the rules, regulations, and overall bureaucracy. A home-buyer can avoid a lot of potential legal problems by making use of their expertise.
That being said, there are still some disadvantages as well as advantages to working with a mortgage broker. These are some things you should consider before agreeing to work with one.
Four Things You Should Know Before Hiring A Mortgage Broker
- Do plenty of research beforehand
A good mortgage broker can make your life much easier, by finding better deals and helping you navigate the bureaucracy. However, a mortgage broker also has considerable power – and that includes the power to sign you up for services you don’t need, or potentially even put you in a mortgage you can’t afford. Do plenty of research on the brokers you might work with and seek testimonials whenever possible.
- Do some homework
Finding an honest mortgage broker is a bit like finding an honest car mechanic – you’re going to have better luck if you don’t rely entirely on them for knowledge about the topic. Do some research online into mortgages, or even try contacting a couple banks to get an idea of what rates you’re likely to be offered. That will make it easier for you to recognize if a broker is behaving improperly.
- Explore plenty of options
Different mortgage brokers have contacts with different financial institutions, so it’s worth contacting several to see what they can offer. Also, be willing to work with banks directly. While brokers can often offer better rates, it’s no guarantee – some banks prefer to avoid brokers and give their best rates to the public directly.
- Be prepared to pay a fee
Mortgage brokers add a commission to your charges, generally 1% of the loan’s value. Remember to factor this into your calculations! It could affect whether you’re truly getting a better deal.
Having Trouble with a Mortgage Broker? Johnston |Thomas Can Help!
If you need a real estate attorney in Sonoma County, Johnston | Thomas has extensive experience with mortgage mitigation and litigation – including disputes with mortgage brokers. Contact us today to consult on your situation.