Choosing the Right Mortgage Broker

Start with asking friends, business associates or family. See if they have recently dealt with a broker. A satisfied customer is always the best place to start. Be leery in taking the recommendation of your Real Estate Broker. Unless you’ve specifically engaged his services as a buyer’s broker, he is working for the seller. The Mortgage Broker that he recommends may be more interested in getting the deal closed than in supplying you with the best advice.

Another avenue to use is Trade Association web sites. Visit the UpFront Mortgage Brokers Association and see if there is a broker listed for your State. Members here pride themselves on offering the highest level of professionalism to their clients. Another source is the National Association of Mortgage Brokers or the New York Association of Mortgage Brokers. Here you will find brokers that are dedicated enough to their profession to invest their time and money for the common good of the industry.

Finally, the Better Business Bureau should be visited. Here you can quickly check if the broker you are considering hiring is willing to hold himself accountable to an independent consumer oriented organization.

Your first contact with the broker is the most important one. Whether it’s by phone or a face-to-face meeting, it’s here where you decide if you want to conduct business with this individual. You may be talking with the most competent individual in the field but if there are frictions between your individual personalities, you need to move on. A clear communication flow between the two of you is of utmost importance.

During this meeting you want to see how the broker handles himself. Is he giving this conversation his undivided attention? There are times when you’re talking to someone on the phone and you know that person is multi-tasking. Your business should be important enough to the broker that he’s not trying to do two things at once.

How quickly does he answer a question? In order to properly answer a question, a professional will need certain details. So before answering questions, the broker will need to get a detailed picture of what’s going on. I often need to remind clients that they’ve lived their lives and take many things for granted. I need to get as familiar with their finances as they are, in a 10-minute conversation. It’s a simple reminder that I’m not being nosey, I just need certain details in order to do my job properly.

This first conversation will take time. So if you’re in a hurry don’t start the conversation. Do it at a time when you can commit your undivided attention to the meeting. You are as guilty as the broker if you’re multi-tasking during the conversation. Why should he invest his time with you if you’re not paying attention?

Do you feel rushed into doing an application? Is the broker concentrating on your concerns and helping you get your thoughts organized or is he focusing in on getting an application signed? He needs to be willing to invest his time in answering your questions in order to earn the right to conduct business with you.

How detailed are the answers? In answering a question he should be providing enough of an explanation so that you are able to understand the reasoning behind the answer. This is an educational experience for you. Simple yes or no answers just don’t cut it.

Is he talking in “industry speak”? Any professional needs to be conscious of this. We deal with other people in our industry all day long. Every industry has its own language. It’s extremely easy for anyone to allow industry specific terminology to slip into a conversation with someone outside his or her profession. There are individuals who use “industry speak” as a form of intimidation. Essentially, by speaking in a foreign language, they are trying to make you feel stupid. This is uncalled for and not the sign of a true professional. There is no reason to continue working with this individual.

Is he clearly explaining his fee to you? There should be no reason why you don’t know exactly how the broker is being compensated and what the total amount of that compensation is, before utilizing his services. If you’re not sure, ask. If you’re still not sure, go elsewhere.

How accessible is he? Does he return phone calls promptly? Does he respond to your e-mails within the same day? Does he have responsive support staff to assist you? There will be several times that you are in contact with the broker before you actually do an application. As you navigate through these discussions, you deserve a level of responsiveness. If you don’t feel you’re getting the attention you deserve, consider moving on.

The mortgage broker profession is a service business. You are the client. Without you, the broker has no reason to be in business. The professional mortgage broker’s goal is to arrange for the best financing to fit your needs and to do it at a competitive price. Notice, I didn’t say best price. No one in this business can promise the best price. There are too many variables and the cost of mortgage money changes throughout the day. A broker promising the best price is a signal to find another broker.

Making promises that can’t be met is not being professional.