Mortgage brokers help people find the best mortgage loan possible. They work with a number of different mortgage lenders so you only need to work with one person rather than call all the different mortgage companies yourself for quotes. Brokers can also help explain what the different mortgage options and terms mean for those who aren't familiar with them. However, some mortgage brokers are better than others.

Broker's Experience

Look for a broker who has been in business long enough to have worked during the housing market recession. Brokers who've only worked while the housing market was doing well may not be as good as more experienced brokers at finding the best possible options. Contact people who have used the broker in the past to see whether they would use the broker again and whether he or she was good at explaining the various options and offered a variety of different choices rather than just steering the person toward one particular company or type of mortgage.

Payment Methods

Ask how the broker is paid. Brokers that are paid a fee are typically a better deal for the homeowner than those who are paid by point spreads. Basically, those paid through point spreads get the bank to pay them in exchange for the homeowner having a higher interest percentage throughout the life of the loan. One situation in which point spreads may be a good idea is when the buyers don't have money to pay the closing costs and fees and the lender allows these to be rolled into the mortgage. Broker fees are usually a set percentage of the total loan amount, typically between 1 and 2.5 percent.

Broker Versus Lender

A mortgage broker is a middleman, which is why some people choose to go to the mortgage lenders directly. However, a broker can save a homeowner a lot of time and effort, as they are familiar with the offerings of multiple lenders and can tell you which lenders may be best given your financial situation. A broker can be particularly helpful for those who aren't very familiar with the whole mortgage process or have a less-than-ideal financial situation. The broker can also easily compare the offerings of different lenders, which can be more problematic for homeowners because they need to make sure they're comparing the same type of loan.

To find a mortgage broker who can help you, contact an establishment like McKinley Mortgage.