Navigating the Mortgage Maze Choosing the Right Broker in New Jersey

By Francisco “Frank" Pinho Jr.
May 22, 2023
Navigating the mortgage maze
When it comes to buying a home in New Jersey, one of the most important decisions you will make is choosing a mortgage broker/lender. A mortgage broker is a professional who works with borrowers and lenders to help secure financing for the purchase of a home. But how do you choose the right mortgage broker in New Jersey? Firstly, a mortgage broker is different than a mortgage lender. A broker will gather your information and shop it around to different lenders he/she works with to get a kickback/referral fee. A direct lender is going straight to the source for your one stop shop. So how do you choose? Here are some questions to ask to help you make an informed decision.

What are your qualifications and experience?

You want to make sure that your mortgage broker/lender has the necessary qualifications and experience to help you find the best mortgage options. Ask about their experience they have and what types of mortgages they specialize in.

For us at PRMG, we’re the 13th leading private lender in the nation and my branch feels more like a mom-and-pop shop than working with a large corporation. We have the technology and support of the large corp. with the feel of working with family, because you are! My mother has been in this business for 30 years and is the lead processor at our branch. On top of that our branch manager has been her business partner for three decades and is my mentor. This makes for a seamless transition and communication when you’re in need of guidance through the homebuying process.

What lenders do you work with? (If you’re dealing with a Broker)

A mortgage broker works with many different lenders to find the best mortgage options for their clients. Ask your broker which lenders they work with and what types of loans they offer. This will give you an idea of the range of options available to you.

What are the fees associated with your services?

Mortgage brokers typically charge fees for their services. These fees can vary depending on the broker and the services provided. Ask your mortgage broker about their fees and what services are included. You want to make sure you understand all costs associated with the loan process before making any decisions.

What documentation do I need to provide?

To secure a mortgage, you will need to provide documentation to your broker/lender. Ask your broker what documentation is required and what the timeline is for submitting it. This will help you stay organized and ensure a smooth loan process.

That’s the benefit of working with us and our knowledgeable representatives. We know there is no cookie cutter mold for the home buying/lending process. So we talk you through what best option works for you. Only plan on being in this home for 1-2 years? Maybe a 2-1 buydown works for you! Not so great credit? Let’s see what you qualify for with an FHA loan or maybe we wait a couple months and formulate a detailed plan for improving your credit and rendering the factors that are hurting your purchasing power. Have a lot of liquid in the bank? Perhaps a Non-QM bank statement loan is right for you! Looking to invest in a property? Let’s look at our no income document needed DSCR )Debt Service Coverage Ratio) loan based on rental income possibilities!

What is the timeline for closing?
Closing on a home can take anywhere from 30 to 60 days, depending on various factors. Ask your broker what the timeline is for closing on your mortgage and what factors can impact the timeline. This will help you plan accordingly and avoid any surprises.

What is the interest rate and APR?

The interest rate and annual percentage rate (APR) will have a significant impact on your monthly mortgage payments. Ask your mortgage broker what the current interest rates are and what your estimated APR will be. This will help you compare loan options and make an informed decision.

What are the down payment requirements?

Different mortgage options have different down payment requirements. Ask your mortgage broker what the down payment requirements are for each option and what assistance programs are available. This will help you understand your options and plan accordingly.

We at PRMG have programs that offer 0 down payment options. But will take a look at your all encompassing financial standing and find the best option for you!

Choosing the right mortgage broker in New Jersey is crucial to securing the financing you need for your dream home. By asking the right questions, you can ensure that you make an informed decision and find the best mortgage options available. If you have any questions regarding these or other loan products mentioned, please contact me below!

Frank Pinho PRMG headshot
Francisco Pinho Jr.
PRMG, Inc.  
Cell: (908) 472-7076