Article provided by: Shannon Christenot
If you’re looking for a mortgage broker, there are several questions you’ll want to ask. Looking for the right mortgage broker is important; it’s important you find one that will help you get the best mortgage for your needs and budget. This article will discuss several things you should find out when looking for a mortgage broker in Los Angeles.
How does your application process work?
More lenders have online platforms so you can track your loan’s progress, so the there’s less ambiguity about the underwriting process. . There are a few important details you should find out about the process:
- How the average closing time is.
- Get an estimated fee sheet
- Cost and timeline to lock in a mortgage rate.
- Specific loan product requirements for your credit score, debt to income ratio, and down payment.
- If they have a website where you can upload documents and check the progress of your loan.
- The documents they need at each point in the loan process and when to submit them.
- Companies used for services like appraisal, title insurance, and escrow.
What kind of experience does your team have?
If this is your first time looking for a mortgage broker in Los Angeles, or if you’re refinancing, you’ll want to have someone who explain the process. The key things you need to know about the broker’s experience are:
- If you can get in touch with them easily, and how prompt they are
- If they have people helping them
- How long they’ve been in business. Ask for references.
- Are they comfortable using your preferred communication method
- Do they give clear and understandable answers?
Find out about the current rates
How you ask this question is important for getting accurate loan pricing. Instead of asking for the current mortgage rates, ask for specifics. Tell them what kind of credit score you have, what amount and type of mortgage you want, and if you have money for a down payment. Then ask for the current rates. Interest rates change daily, so be sure to get all your quotes on the same day to make an actual comparison. It helps to use a mortgage broker who can comparison shop for you with several different lenders, because they can find similar loan products.
Find out if you’ll qualify for a loan even with bad credit.
If you know your credit isn’t great, be honest with mortgage brokers. That will help them find the best home loans for you, especially if you’re a first time home buyer. FHA loans are great for home owners with a low credit score and no money saved up, but you have to have a credit score above 580 to qualify. If you decide to take an FHA or Department of Veteran’s Affairs loan, you’ll have to pay private mortgage insurance if you have a small down payment.
These are just some of the things you should find out when looking for a mortgage broker. Once you’ve found a mortgage broker you like, find out what the different steps are that you’ll need to go through to apply for a mortgage and what documents you’ll need to provide at each step. Then make sure you’re ready to provide the appropriate documents at the appropriate time.