|
Good Mortgage Broker vs. Bad Mortgage Broker
By: Brian Daniel
According to the NAMB (National Association of Mortgage Brokers), two out of
three Americans work with a mortgage broker to purchase a home because of the
broker’s expertise and wide selection of loan products and lenders. However,
with so many so called “experts” out there, how does one separate the wheat from
the chaff? How do you know if a broker is honest? And how do you know they're an
“expert” or not?
The NAMB says that over 70 percent of brokers are legitimate, that is they have
safeguards and policies in place to make sure that they stay on the straight and
narrow. So what about the other 30 percent? Well, the whole 30 percent isn’t
bad, but just as in any classroom, you’re going to have those at the top, some
in the middle, a few at the bottom, and others who simply don’t show for class.
Obviously, those at the bottom and the no shows would not be your first choice
if you were going into surgery and they were holding the scapel, nor should they
be handling your loan when you purchase a home or refinance.
Because of the surge in numbers of mortgage brokers in the past few years, there
are plenty of incompetent and dishonest brokers out there. In order to avoid the
30 percentile, I offer the following tips to help you find a mortgage broker
that is not only an expert but honest and reputable as well:
Don’t believe everything you hear. Asking friends or family to recommend a
mortgage professional is usually the first place people start. However, how do
they know the broker is reputable and trustworthy? Check with your state
regulatory offices and licensing bureau once you have some referrals. Better to
be safe than sorry.
Use an NAMB certified mortgage broker. Brokers certified by the NAMB practice
the highest ethical and professional standards in the industry. There is a “Find
a Broker” link on the NAMB’s website at www.namb.org.
Use an Upfront Mortgage Broker (UMB). These brokers disclose their fees to
customers in writing in advance at the customer’s request. They also disclose
the wholesale prices they receive from lenders. For a list of UMBs visit
www.mtgprofessor.com.
Honesty is the best policy. If a mortgage broker suggests that you lie on your
loan application in any way, he/she is most likely in the 30 percentile. Walk
away.
They need to show you the money. If a mortgage broker doesn’t disclose your
closing costs in three business days, it’s probably best to take your business
elsewhere.
If you’re not bleeding, they shouldn’t be applying pressure. A mortgage broker
who pressures you into anything you are not comfortable with probably failed
ethics. No reputable broker will pressure you into anything you don’t feel
comfortable with.
There are no stupid questions. Does the mortgage broker answer all your
questions to your satisfaction? Are his/her answers straightforward, honest, and
respectful?
Do you have a reservation? If you feel comfortable with whom you’re working with
and feel like they have answered all your questions and put all your
reservations to ease, you’ve probably found a good mortgage broker.
About the Author:
Brian Daniel is a loan officer for http://www.bendmortgagegroup.com, a mortgage
company in Bend, Oregon. He is also the company's marketing coordinator.
|
