Top 10 Tips for Choosing a Mortgage Broker

If you’re ready to start shopping for a home or wish to re-finance your current home loan, you’re probably wondering how you’ll find a mortgage broker who’s trustworthy, knowledgeable, and easy to work with.

Take a peek at these tips to select a mortgage broker that will best help you in your quest for obtaining the mortgage loan that’s right for you:

1. Find a broker who has connections with a number of lenders. A good broker will typically have six or more sources to select from.

• Multiple loan sources mean the broker has some options in terms of mortgage length, interest rate, and the specific requirements of the loans.

2. Do an initial phone interview. It’s important that you feel comfortable with your broker. Rather than waste your time visiting a broker in person, call them first.
3. How long has he been in the mortgage brokerage business? A reputable mortgage broker with some years’ experience will be able to offer you far better services than a young loan officer in training.
4. Inquire about the broker’s references. Follow through on checking his references to determine whether you feel he will work in your best interests.
5. Look for a mortgage broker that will act as your legal agent. You want the broker to protect your interests.

• Always ask the question, “Are you working as a lender or a broker?” A lender works to represent his own interests and those of the lending institution whereas a mortgage broker works for himself and you.

6. Notice if a mortgage broker is interested in your wants and needs. An effective, experienced broker will assist you in setting goals and help you clarify the type of home you’re looking for. You’ll be one step closer to finding a great broker.
7. Obtain a broker who will do a written contract with you. Because a mortgage broker is required by law to disclose how much money he’ll charge for the transaction, ensure you have a written contract with him that spells out his compensation.

• The contract should include the services the broker is providing and the agreed-upon fee you’ll pay for that service.
• A written contract up front is important because, unfortunately, some mortgage brokers are less than honest during initial phone discussions and meetings. If he balks on the written contract, move on to find another broker.

8. Select a broker whose fees are less costly than a bank’s loan fees. If you don’t find out from various lending institutions about their rates and fees, how will you determine if you’re getting a good deal from an independent broker?
9. Check to ensure he is a member of the Upfront Mortgage Brokers Association. This way, your broker will be honest with you about compensation and guarantee that he won’t raise those charges later.

10. Check with your local Better Business Bureau. See if others have lodged complaints against him.

By putting the above strategies into place, you’re taking proactive steps that protect you. Plus, you’ll ensure you come to a satisfactory conclusion with your mortgage broker. The home  of your dreams may be right around the corner!