Working with a mortgage broker is a good idea if you want help sifting through loan options, selecting the best interest rates, and solving complex borrowing problems. But, before you hire a mortgage broker in Raleigh, NC or anywhere else, you must know a few things about them so that you can ensure their hiring is worth it. After all, the goal of working with one is to save money, right?
Being aware of certain things will help you pick the right broker that will find the best mortgage deal for your needs and budget. Once you understand the process of choosing a mortgage broker and working with them, you can take a look at some of the best mortgage brokers in Raleigh, Charlotte, Cary, and Durham in North Carolina.
Let’s start by explaining what they do and when to consider hiring one.
Mortgage Brokers and What They Do
Mortgage brokers have the knowledge and expertise to guide people through the entire application process and manage the approval process which saves them time and effort.
Mortgage brokers are intermediaries between people that want to buy real estate, but need to get a loan to do so, and a financial institution or bank that offers loans secured with real estate. They act as a bridge between lenders and borrowers.
But, they are not just middlemen who ensure people get the loan. They are qualified professionals, who need to pass a difficult NMLS test (with a 54% first-time pass rate), with access to a wider range of deals that people won’t be able to find if they are looking on their own. This means borrowers can get more favorable interest rates, thus saving money in the long run, Forbes explains.
Is a Mortgage Broker the Same as a Mortgage Advisor?
Yes, it actually is. Mortgage brokers are sometimes called mortgage advisors, but these experts do the same thing – look for the best mortgage deal for you based on your financial situation and applying on your behalf, explains Which.co.uk.
Can Mortgage Brokers Get You a Bigger Mortgage?
Mortgage brokers are professionals who have the necessary knowledge and expertise across a range of financial products on the market which allows them to help with the loan application details. This, in turn, can help them get you a bigger mortgage, Property Update explains.
When Should You See a Mortgage Broker in Raleigh?
Investopedia suggests the following reasons to consider seeing a mortgage broker:
To find out about loans that aren’t available to you
To get access to lenders you’re not familiar with
To find a loan if you don’t see mortgages that work for you
To get a beneficial loan even if you don’t have great credit or you own your own business
To qualify for a lower interest rate than the already available commercial loans
Questions Should You Ask a Mortgage Broker?
Feel free to ask your potential broker the questions listed by Greedy Rates, Forbes, and Bankrate so you can ensure they will get you the top mortgage deal for you.
What do you charge and are fees paid by the lender or the borrower?
Is there a fee for your mortgage broker services?
Can I get pre-approved for a mortgage?
What is the right type of mortgage for me?
How does the mortgage approval process work?
Should I go with a variable or fixed-rate mortgage?
How can I save on interest?
How much will my mortgage cost?
What prepayment privileges does a particular mortgage offer?
What is the mortgage penalty if I break my mortgage early?
What closing costs should I budget for?
Which lenders do you work with?
What Are the Things You Shouldn’t Say to a Mortgage Lender?
What you say to a mortgage lender affects their decision regarding your loan application. If you say the wrong things, they may deny it, so The Mortgage Reports recommends avoiding the following:
Lying or providing misleading information on your loan application
Asking them how much you can borrow
Saying you have forgotten to pay a few bills
Telling them that you have applied for or opened up several new credit cards
Saying that changing jobs every year is your specialty
Telling them that you are considering leaving your salary job
Bragging about your cash gift from your parents for the down payment
Asking them what happens during the foreclosure process
Asking them what a credit score is
Can You Work with Two or More Mortgage Brokers at the Same Time?
Talking to multiple mortgage brokers at the same time is fine, and even recommended, as that gives you a chance to pick the best broker. However, choose one before starting to submit preapprovals.
Some may even get you to sign an agreement that you won’t go to the bank or work with another broker after they get you a deal.
If you work with several multiple brokers, they will probably send your loan application to the same lenders. This, in turn, will result in frustrated lenders and brokers as preparing and reviewing the application takes their valuable time.
What Is the Average Fee for a Mortgage Broker in Raleigh, NC?
Mortgage brokers are compensated either through commissions paid by mortgage lenders, or fees paid by mortgage borrowers, the first being more common.
The precise amounts of these commissions and fees vary, but in general, they can earn up to 2.75% of the total cost of the mortgage loan. This, however, depends on who’s paying, Forbes explains.
Lender commissions – these are paid by the lender after closing and can be as low as 0.50% or as high as 2.75% of the total amount of the mortgage loan.
Borrower fees – these usually range from 1% to 2% of the total amount of the loan and are paid by the mortgage borrower. Borrower fees are often paid as a lump sum at closing, but they can also be rolled into their loan.
Are Mortgage Brokers Free?
Even though some mortgage brokers charge borrowers a flat fee after closing the deal, most of them are paid by the lender without affecting the closing costs of the borrower. That’s why mortgage brokers are usually free for borrowers, but not for the lenders.
Can a Broker Rip You Off?
Dishonest brokers that can rip you off do exist, but generally, these experts work in the borrower’s best interest. Ways they can rip you off include offering you more expensive loans so they can earn more by charging the lender a higher fee or recommending only those mortgage loans that are beneficial for them.
Is It Worth Getting a Mortgage Broker?
Mortgage brokers know all the hidden costs of getting a mortgage, so they will ensure you get the best deal for your budget. If you go on your own, you risk making a mistake that can cost you hundreds or even thousands of dollars, which is a lot more than hiring one. That’s why working with a mortgage broker makes a lot of sense, according to The Guardian.
Mortgage Rates Today and the Lowest Ever in History
According to Value Penguin, the lowest average mortgage rate ever in history was in November 2012 – 3.31%. The average 30-year fixed rate today is 3.017% and the average rate on the ARM or adjustable-rate mortgage is 3.227%, Nerd Wallet reports.
What Are Raleigh Mortgage Rates Today?
Current 30-year fixed loan rates in Raleigh, NC are 3.07%, 15-year fixed loan rates are 2.37%, and 5/1 ARM rates are 2.80%, Realtor reports.
Can You Negotiate Mortgage Interest Rate?
Yes, you can provided that you are a credit-worthy borrower and have a lower quote from another lender. The Mortgage Reports suggests the following strategies to get a lower rate for your mortgage:
Shop around – this allows you to compare rates, as well as points, and closing costs so that you can see which lender is the “cheapest”.
Bring a lower rate offer – Show your lender a lower rate offer and ask if they can match it
Buy discount points – in this way, you can pay a little more upfront that lowers the overall mortgage rate.
Strengthen your loan application – the stronger your application, the more lenders are willing to negotiate.
How to Get the Lowest Mortgage Rate
Bankrate recommends taking the following steps to get the lowest rate on your mortgage:
Boost your credit score – lenders estimate your ability to repay the debt based on your credit score.
Prepare a record of employment – showing at least 2 years of steady salary job makes you more attractive to mortgage lenders.
Build down payment – saving up for a down payment can help you get a lower rate for your mortgage.
Consider a 15-year loan – this will help you pay off your mortgage sooner, especially if you have good cash flow and your loan is for a long-term home.
Compare loan offers – shop around to ensure you get the best fit for your needs and budget.
Lock in your rate – rates can quickly fluctuate, so make sure your lender locks in your rate after signing the home purchase agreement and securing your loan.
What Credit Score Is Needed to Buy a House?
Banks usually give free advice when it comes to mortgages, but they only speak about their own mortgages. Keep in mind that by going straight to a particular bank, you’re limiting yourself to one lender.
Does It Matter Which Bank You Get a Mortgage From?
It matters for your budget. Going directly to your regular bank without considering other mortgage lenders can be an expensive mistake. That’s why shopping around and comparing mortgage rates from a variety of lenders before applying for a mortgage is a smart move.
Mortgage Broker or Bank – What’s the Better Option?
In general, mortgage brokers are a better option if your loan application involves challenges, as they know the flexible lenders that can help. A bank, on the other hand, can save you time and money if your income, credit, and assets are strong and your loan is a straightforward transaction, The Mortgage Reports explains.
Mortgage Broker Near Me – Raleigh, Charlotte, Cary, and Durham, NC
Now that you know what mortgage brokers are, how they can help you, and what questions to ask to ensure they get you the best possible mortgage deal, it’s time to find the best mortgage broker in your area.
We did some research for you to help you choose the best broker or lender in a few North Carolina cities.
Best Mortgage Brokers in Raleigh NC
Here are some of the best mortgage brokers to consider in Raleigh, North Carolina, according to Yelp:
Devon Mortgage
Tammi Rowe – Movement Mortgage
Raleigh Mortgage Group
Miller Lending Group
Amy Bonis Mortgage Team
Raleigh Mortgage Gals
Karyl Smith – Alcova Mortgage
Mortgage Choice
Carolina Home Mortgage
Carolina Ventures Mortgage
Best Mortgage Lenders in Charlotte NC + Best Mortgage Brokers
Nerd Wallet shares some great options to choose from if you’re looking for a mortgage lender in the city of Charlotte, North Carolina:
Quicken Loans
Fairway Independent Mortgage
Bank of America
BB&T Home Mortgage
SunTrust
IoanDepot
Flagstar Bank
Navy Federal
Caliber Home Loans
Carrington
When it comes to mortgage brokers in Charlotte, NC, Expertise recommends the following:
A-List Realty & Mortgage Services Inc.
Admiral Home Mortgage
Bridgewater Capital
Carolina Mortgage Services
Direct Home Loans Mortgage
East Coast Mortgage Lending
Ed Butler
Fairway Independent Mortgage
Gateway Financial Group
Ideal Lending Solutions
Best Mortgage Brokers Cary NC
Here are ten of the best mortgage brokers in this area, listed by Yelp:
Miller Lending Group
Mortgage Choice
Mortgage Partners
Tammi Rowe – Movement Mortgage
Raleigh Mortgage Group
Carly Asher – First National Bank
Carolina Equity Services
Austin Herbert – Lighthouse Lending
Carolina Mortgage Authority
The Sherry Riano Team
Best Mortgage Brokers Durham NC
Yelp once again shares the best mortgage brokers, this time in Durham, North Carolina:
Devon Mortgage
Carolina Ventures Mortgage
Miller Lending Group
Marcus Bowman – Bowman Mortgage Group of Movement Mortgage
Carolina Home Mortgage
Austin Herbert – Lighthouse Lending
Bryan Parker
Triangle Mortgage Solutions
Pinnnacle Funding
Mortgage Choice
A great local resource if you’d like to learn more about mortgage lending is Austin Herbert at Lighthouse Lending. He is a mortgage broker with your best interest in mind. Don’t hesitate to contact him here for all your mortgage questions and needs.