What to look for in a mortgage broker?

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19th Dec 2009 by Burt Carlson

Whether you are working with your retail bank, a mortgage banker or mortgage broker you should be looking for the same things in a mortgage. What are your options? What is the rate? How long is the rate good for (rate lock period)? What are the costs (Get a Good Faith Estimate or GFE)? Are there any up front costs (there should be none except for the appraisal)? Can the loan be delivered on time? Are you comfortable with the experience and expertise of the person you are working with? Are the communications timely and informative? Has the loan process been explained? What do you know about the company?

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2nd Nov 2009 by JonB

Mortgage brokers are generally thought of only when dealing with a loan that is difficult or unique. Though many times this is certainly the case, many brokers can offer great rates to A paper clients as well.

A mortgage broker has access to many, many different lenders. because of this they are able to shop your loan around to many different lenders. Sure, you could do this yourself, but you would have to have your credit pulled again and again at every bank you went to. The mortgage broker can shop your loan to dozens of lenders while only pulling your report once.

In my opinion you should first go to your local bank as they are likely to give you a very competitive rate to keep your business. You should then check out a few other retail places. But I think you should always check with a broker in addition to your alternatives.

It doesn't cost you anything to have a mortgage broker do some additional searching for you, just in case there is something better out there.

Never pay anything to a mortgage broker up front. Not even a credit reporting fee. There are too many out there who are willing to work hard on your behalf with no money up front.

Make sure they take the time out to discuss multiple options, not just the one you had in mind to being with.

Finally, make sure you are getting a good deal by asking them if the interest rate they quoted you includes an yield spread compensation for them.

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26th Oct 2009 In Real Estate 2 Answers | 2838 Views
Subjects: broker, mortgage broker,

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