Mortgage brokers have been on the real estate scene for a relatively short
period of time. In this short period of time some have managed to make a bad
name for themselves but it is important to remember that not all mortgage brokers
are bad. A mortgage broker can be an invaluable partner in your home-buying
process, so finding a good one is important. It shouldn't be that hard, either,
if you know what to look for. Here are some things to note when
for a mortgage broker.
- Look for a mortgage broker who does not charge you any fees upfront, but
instead takes his commission at closing. Mortgage brokers get paid when you
do, not before.
- Look for a mortgage broker who explains financial terms and jargon to you
in a clear manner as many times as you need. If they don't, they may be trying
to use your ignorance to their advantage.
- Look for a mortgage broker who will redo your financial number crunching
as many times as you ask. It is important for both you and your broker to
have a firm grasp on your financial status as doing so gives you an advantage
in seeking the right loan. Don't be afraid to ask for explanation until you
Understanding the numbers can mean saving
hundreds or thousands of dollars.
- Look for a broker who is available. Applying for a mortgage is a long, complex
process. You don't ever want to be left out on limb or unprepared when a lender
makes you an offer or changes the offer. You want your mortgage broker to
be there and available to handle these situations.
- Look for a broker who is intelligent and
Again, applying for a mortgage is a long, complex process. If your mortgage
broker doesn't understand, he can't help you understand it. Then you're basically
paying someone for only doing half a job. Notice I said intelligent and knowledgeable.
You want your broker who understands more than just the numbers; you want
a broker who understands the local market. Often, non-local lenders will have
questions about small things an application that need a regional explanation
(for instance, many homes in Southern Arizona have termites), and they will
hold up your application until they get an answer. You want a broker who can
provide answers to these questions quickly.
- Look for a mortgage broker who works with a good number of lenders. One
of the primary reasons for working with a mortgage broker is so that they
shop around and get you the best rates and terms available.
If your broker only works a few lenders, you may as well go to a bank - it'll
save you money.
- Finally, look for a mortgage broker you like and can trust. Do a
check. If something tells you not to work with the broker, then don't.
You will be spending a lot of time with the person and entrusting them with
a lot of sensitive personal information. The relationship will be a disaster
if you can't stand or trust the person.