Finding the Mortgage Agent that is Right for You
Posted by David Schneider | December 3, 2007

The mortgage and housing market is a tricky maze to navigate. When planning a move, there is so much information to learn about homes, mortgages, locations, potential problems with locations, property values, loans, credit scores and new neighbors.

With regard to finding a house, your best bet is to use a realtor. Mortgages, however, are a little bit more detailed and require the expertise of a good mortgage agent. Keeping certain things in mind and having a formulated understanding about your needs will help you come out unscathed, with the best mortgage for your particular situation.

Know Your Credit Situation and Find a Mortgage Agent That is Right for You

As in any situation regarding financing, your credit score plays a large part in whether or not you receive a line of credit and at what interest rate. If you do have some blemishes on your credit, are they easily fixable? If so, it’s worth your time to get them cleared up. Doing so will save you a substantial amount of money during the life of you mortgage loan. No matter how good a mortgage agent is, he or she can only do so much with the situation you bring to the table.

Know Your Mortgages

Mortgage agents are great at finding the best mortgage for your particular needs. However, your first visit with the mortgage agent is not the time to be educating yourself on the basic aspects of mortgages. In general, make sure you understand the difference between fixed rate and adjustable rate mortgages.

Questions to the Mortgage Agent

Be sure you are aware of the points a mortgage agent charges for his or her services. They are, after all, on your side and do not make money without your mortgage purchase. However, like any business, mortgage agents are salespeople. While the products they propose appear to meet your needs, ask what is in it for them.

Some smaller companies do not charge fees or points on a mortgage. Rather, they keep the mortgage and service it for the full term. They make money on the interest earned over the life of the loan. When smaller companies do this, they are able to move clients from one loan product to the next, as often as necessary. When this occurs, you as the mortgage holder do not have to pay any sort of fee.

Finally, determine where they are finding mortgage offers and information. Do they themselves us a broker? Are special financing arrangements set up through certain banks?

Knowing all of this information up front and then not being afraid to ask key questions during the interview process will help you arrive at the best decision for you needs. Remember, YOU are interviewing THEM.