What to Look For in a Mortgage Broker

With their industry under fire, thousands of mortgage brokers in the United States continue to operate - only now under greater suspicion.

Perhaps that’s a good thing. A mortgage broker represents private banks as well as public banks, investors and lending institutions large and small.

In the world of home loans, they’re often calling the shots. At least they would like that chance.

However, all mortgage brokers are certainly not created equal, as the recent news surrounding their practices can attest.

If you are thinking of using a mortgage broker, you’ve got to make sure you’re working with the right people for the right reasons. Here’s what you should look for:

1. Making themselves available. A mortgage broker should not be difficult to get a hold of. Arranging your home purchase loan or mortgage refinancing is the most important decision of your financial life. You should not have to play second fiddle to anyone, so if you’re not getting around-the-clock treatment and great service, move on!

2. Communication is the key. When it comes to the ins and outs of the mortgage process, mortgage brokers should not pull the wool over your eyes when it comes to the cost. You should have at least some timeline for how long your application will take before you hear back.

3. They should do something you couldn’t do on your own. Believe it or not, a lot of people don’t use mortgage brokers and go directly to the home mortgage lender themselves. If you do use a mortgage broker to find the best loan program to fit your needs, be sure you know what that person is bringing to the table - not just what they say they are.

4. Selling you on the home loan can’t be the main agenda. You should never get the feeling that the broker is telling you what you want to hear just to get your business. A reputable mortgage broker should tell you the pros and cons of all potential options and be straightforward about them.

5. A quality mortgage broker works with many lenders. A broker limited to just working with a couple may struggle to serve your best interests as their options (and yours) are limited. Especially if you are in need of creative financing, you can’t afford to be kept in the dark.

Like anything else, it pays to do your research when picking a mortgage broker. Do the mortgage homework and it will pay off in the form of a better home loan. Guaranteed.