August 10, 2007, Newsletter Issue #76: Mortgage Brokers Do the Shopping for You

Tip of the Week

If you want convenience when seeking a home purchase loan, go to a mortgage broker who will do the shopping for you. Mortgage brokers act as middlemen and find the best lender for homebuyers and oftentimes, mortgage brokers make the work of getting mortgages easier. Typically, they have better access to more lenders and can find the right terms on home purchase loans.

The convenience of using a mortgage broker may be especially helpful to first-time homebuyers who are unfamiliar with the requirements and paperwork. But choose your mortgage broker carefully; your home purchase is likely to be the single biggest purchase you will make.

* Contact several brokers and fill out applications. Brokers will then contact lenders to see what kind of deals they can get for you. But they are not required to find the best prices for you on home purchase loans until you sign with them.
* Learn the costs of using a broker. Brokers typically get a separate fee for their assistance in finding home loans.
* Ask a mortgage broker how payment is made. There are different methods. The fee may be described as "points," which home buyers pay at closing. Or the fee may be added on to mortgage rates.
* Don't be afraid to negotiate costs and mortgage rates with your broker when shopping for home purchase loans.

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