There is a marked difference between a great mortgage broker and a good one.
By: Phoenix Lee/
The home buying process – from application, liaising with lawyers, compiling the documentation, and finally disbursement – can be a tedious, time consuming process. Good mortgage brokers understand the range of products which are available in the market, but great mortgage brokers use this knowledge to guide you through this process and teach you how to buy so that you don’t stress yourself out.
While many prospective home buyers shop for a mortgage, a professional and conscientious mortgage broker can make all the difference, with their wealth of knowledge and experience in the property market.
However, with several mortgage brokers to choose from in the market, it can be difficult to gauge whether your mortgage broker is offering you top quality service. Here are five telling signs that can show you whether you are working with a truly great mortgage or not:
Great mortgage brokers ask questions
Even with their extensive knowledge on the various products in the industry, a great mortgage broker will ask you several questions to ensure that you receive the best mortgage quote suited to you.
A great mortgage broker will ask you about your credit rating, how long you expect to own the home, your plans for the home, and the property type you expect to purchase.
A great broker will take the information you have provided to offer multiple mortgage options that are uniquely suited to you and your needs. A great broker will also take time out to explain what each of these options mean for you.
This is in contrast to a bad broker who will try to offer you limited loan programmes that they understand, without much input from you. Sometimes, a bad broker may even offer you a rock-bottom advertised rate only to inform you that you don’t qualify for that rate once it is too late.
Great mortgage brokers communicate
It can be overwhelming for a layperson to try to make sense of the housing market, given that it is chock full of technical terms and jargon. A great mortgage broker will not only know the industry and the products within the industry well – he will be able to explain it to you in an accurate way that is easy to understand.
A great mortgage broker understands that their reputation is their biggest asset and so, they want you to understand what you are signing up for, taking the extra effort to make you, the customer, happy. This is unlike a poor mortgage broker who uses jargon to hide gaps in their knowledge of the best products for you.
Great mortgage brokers solves problems and closes on time
A great mortgage broker understands that failing to close a loan on time can be costly for his customers. Failing to secure a loan on time can cause a borrower to lose their mortgage rate lock or even lose out on the property they had their eye on, and often, unexpected glitches are what causes such unfavourable outcomes.
A great mortgage broker knows to expect the unexpected and will have experience in dealing with such glitches. A conscientious broker will work around the clock to solve problems and offer quick alternatives. He will move mountains to deliver what he promised you.
A bad mortgage broker, on the other hand, may stop communicating with you altogether if a problem crops up, leaving you in the lurch.
Great mortgage brokers keep in touch
Great mortgage brokers will not only always be there to answer your questions and calls promptly, he will also make the effort to keep in touch with you and regularly update you throughout the mortgage process. In contrast to bad mortgage brokers who concentrate on chasing new clients over serving you as well as possible, a great mortgage broker will make you the priority and communicate according to your preference.
Great mortgage brokers work in your comfort zone
You and your needs will always be a top priority for a great mortgage broker. Unlike a bad broker who will push you to take a higher loan amount with little regard to your comfort level, a great mortgage broker understands the long-term value of a satisfied client and will work to ensure that you are comfortable with the loan amount.
A great mortgage broker understands that just because you get approved for a specific loan amount doesn’t mean you should take it if it makes you uncomfortable.
Such a broker will either find a way to make you comfortable with the loan amount or find alternatives, such as a smaller loan size or a different mortgage program altogether, to ensure that you are confident with the payment and that you, the borrower, are satisfied.
In short, great mortgage brokers distinguish themselves from the competition. And the best thing about engaging a great mortgage broker is – the services of the mortgage brokers are usually free. That is, unless you have a complex situation or if you are only borrowing a small amount.
In case you are wondering why it is free to the borrower, it is because the lenders will pay the mortgage broker a distribution fee upon successful disbursement of loan.
A great mortgage broker has tools such as the home loan comparison system, which compiles all the available loans that meet your search query, when you input the loan quantum, duration, housing type and whether the property is completed or under construction.