The best mortgage brokers in Dallas can save you thousands of dollars when buying a home in the big city.
The concept of the middleman is not one most people warm up to, and you cannot blame them really. Whenever a middleman is involved in a transaction, expect the price of a product or service to go up.
But there is one area where a middleman can be beneficial, believe it or not. And apparently it has to do with the most important investment many people get to make in their lifetime: buying a home.
When you are shopping for a mortgage, a good mortgage broker on your side is essential. Reason is because they could end up saving you thousands of dollars in interest over the lifetime of your mortgage.
Surprisingly, the role of a broker in the home buying process is not one many homebuyers are familiar with – despite this being one of the most obvious steps of purchasing a home. In particular, what remains hazy is what a broker does and his/her role in the mortgage process.
If you are looking for the best mortgage brokers in Dallas, worry not, though. That’s why we are here: to provide the inside information that will help you make the right choice.
When looking for a home loan, it’s not a must to involve a mortgage broker.
There is not much they do that you can’t manage on your own, especially since the bulk of the work involves obtaining quotes and filling out mortgage applications.
But here are a few reasons why involving a mortgage broker could work in your favor:
The best mortgage brokers in Dallas have interacted with clients in a whole range of situations, financially-speaking.
They deal with the fundamentals of loan applications every day. If you are a first-time homebuyer who has never done this before, these guys could be extremely beneficial to your cause.
When considering how your life may transform over the course of your loan term, they will be able to present you with scenarios and options that probably never even occurred to you.
They can account for them, and potentially save you a fortune at the end of the day.
This is obviously one of the biggest advantages of seeking the services of a mortgage broker.
As alluded to earlier, even a small difference in the mortgage rate can literally save you thousands of dollars during the course of a mortgage.
The best mortgage brokers in Dallas could have hundreds of lender products in their books, including access to rates that may not be available in the public domain. Therefore, they are well placed to help you find a lender that suits you.
The best brokers are also well versed with the finer details of the industry. In the event your situation seems unusual – bad credit history, for example, a good broker could prove to be a volcano of ideas with regard to pointing you to a lender that is more likely to say yes.
A lot of homebuyers simply get one or two mortgage quotes from a lender and decide to sign up for the mortgage without exploring more options.
This is despite the fact that you are free to apply for as many mortgage quotes as you want without negatively impacting on your credit.
While it definitely pays to shop around, the issue with this is that it can be a tedious process.
But with a mortgage broker, all the dirty work has been done for you.
Buying a home can be an overwhelming process and overlooking the most basic thing could have far-reaching implications.
Realtors and lawyers are great resources to consult, but they will only tell you so much. Same case with a mortgage specialist at a bank who is mostly interested in selling you the product.
In truth, though, their mortgage product may not be the best for your situation.
By working with the best and most reputable brokers, you can trust them to give it to you straight as regards the different mortgage products out there.
Mortgage lenders who have been in the business for a while cannot only negotiate the best rates for you, but also get the lender to waive some fees.
These might include application, appraisal and origination fees.
In what is a pretty crowded marketplace, finding the right broker can be the hard part.
The first step in your quest to separate the grain from the chaff should be to check how long the broker has been in business.
The level of experience helps in establishing if the broker is a seasoned professional who has seen it all or a newbie who is just starting out.
Next, ask about the broker’s mode of compensation.
Mortgage brokers are compensated in either of two ways:
Obviously, you want a buyer who gets paid in fees. The latter approach is a bit controversial. But it can benefit a borrower who cannot afford to raise the loan upfront costs.
Yield spread premiums can be paid either upfront or you can make an arrangement with the broker to pay over time. Confirm this information before you sign anything.
Something else you need to inquire about is the rate lock. This refers to the guarantee given by lenders to advance a loan to borrowers at a fixed rate, at a certain price and for a set period of time.
Some borrowers speculate on the fluctuation of these interest rates, often at the expense of the borrower. It is good to know how your potential broker handles rate locks. However, it is best to get things in writing to prevent the broker from doing any kind of speculation.
The best mortgage brokers in Dallas also need to have a solid reference list. If they have satisfied clients, it would be prudent on your part to talk to these clients directly.
It is like asking a potential neighbor’s opinion about a neighborhood you are considering relocating to. That is as honest as it can get.
You can also do an online background check on the mortgage broker and see what kind of credentials they have. Are they licensed and listed? An online directory for registered brokers should exist.
Lastly, make sure you interview a few brokers from the list you have narrowed down to determine who the best match for you is. Consider at least three and weigh their pros and cons to decide whom you feel most comfortable with.
Choosing the best mortgage brokers in Dallas is not as easy as ABCD.
It can be a laborious process, but every bit worth it. The last thing you want is to rush the process only to find out later you went to bed with the wrong partner.
The best brokers are those who are not just in it for the money. They are those who also have your best interests at heart.
Here is a list to get you started.