What do I look for in a Mortgage Broker???(1st time Home Buyer)?

Question

I am starting on the home buying process (1st home). People told me to start searching for a good mortgage broker but what do I look for in them???

Thanks!!!

Answer 1

Look for someone you trust.

Borrowing money is not like buying a product. One company does not have better money than another. Most of the loan programs you should consider (99% of all loans) are really widely available to anyone in the business (we all go through the same investors) - so the only thing that really sets apart mortgage loan officers (brokers and direct lenders) is the time and effort they will put into YOU.

Take some time and interview a few people. Find out what they reccomend for you and ask them to explain WHY. Look for someone who is able to explain their loans to you in a way that you really understand and in a way that is relevant to you.

This service is all we sell, so a loan officer who will not spend the time to make you comfortable now will not be available or you later. Also a loan officer who is not able to explain in VERY simple terms your loan and how it fits your needs is not sure about what he is doing.

Buying your first home is a stressful and emotionally charged process. You need a loan officer (and realtor) who will make the process easier - not harder.

Answer 2

The answer all depends on your situatuion. One lender may have better customer service and easier underwritng, like Countrywide. Another may have lower rates, but an untrained staff and tough guidelines, like Quicken.

I've worked with all of these banks as a Mortgage Banker and I can tell you that there is no "one size fits all" option for everyone. One lender may be great for one person, but horrible for you.

The important thing to look for is the character, skill, and ethics of the person you're working with. You can determine that by asking them and yourself certain questions:

1. Is the Broker/Lender properly licensed? You can check this on there states mortgage or real estate department. If they are they should be glad to share it with you. In most states you can actually check to see if there are any complaints against them.

2. What is there business philosophy? Do they believe in getting you the very lowest payment and filling their board with loans or do they do a few loans with great service but charge a little extra? Or do they take the middle road and just do a good job at a fair price?

3. How long have they been doing loans and how many loans have they done? Even if they are well intentioned they may be inexperienced and unable to get you what you need.

4. What are their resources? Are they a direct lender that only has one set of guidelines and better rates, are they a broker that has many programs and higher rates, or are they a combination of both?

5. What do they charge? Do they have a flat fee? Do they make there money on the "back end" ? Is it all based on your negotiation skills?

I do loans too. If you'd like to talk to me then please send me an email with your information. ireccomend checking out my profile too.

Answer 3

You need to find someone that you like to talk to and feel comfortable with. They need to be accurate with the answers they give you as well as fast. The best thing to do is to try a few out and maybe ask friends and family who they liked to business with. Everyone has there own opinion on people. Also make sure they come from a reputable company.
Good luck hope you find the right home, need any help let me know, I am a mortgage broker.

Answer 4

Talk to every homeowner you know and get recommendations. Find out what they like about their broker, and what they don't. Try to find someone who keeps going back to the same one over and over. Most people don't use the same broker more than once, no matter how good a job they do, so if they are getting lots of return business they are probably doing something right. Once you get some names, call them, present your situation and ask them to send you a Good Faith Estimate. Compare the responses you get for prices and fees. Pick one who makes you feel comfortable and who will answer all of your questions. If you are in California I'd be glad to refer you to an excellent broker. Good luck!

Answer 5

Let your real estate agent select your mortgage broker.

Here's why, the agent send the mtg. broker business every mo. like clockwork. Who do you think the mtg broker is most interested in pleasing? A one time client with their first mtg or the agents clients? Of course the agents clients. You can go it alone if you want. No law says you cant' but I promise you!!
They will not treat you the way you want to be treated if you come to them just direct on your own. Get a referral from someone who is responsible for a lot of their business. They will roll out the red carpet and give you the best they can get for you, since the next 6 mo. of their income may be riding on your satisfaction.

But, if you have great credit and want to go direct. these guys are really terrific, www.eloan.com I've had several loans with them. I love them.

Answer 6

A loan officer is just like everyone else, work with the one who you think can get the job done. Ask you Realtor who she/he work with in the pass.
Direct Lender / mortgage banker / mortgage broker / loan officer are different in new but the ending are the same.

Answer 7

Hi - You will get alot of informaion on this site. You need someone who has knowledge of the business, your state laws. Ask them how long they have been in the Mortgage Business.

Look for someone who cares, one that will answer all your questions. (ok). Good Luck to you and happy house hunting.

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - Just depends on your credit. You could get a lower interest rate or it could be higher - it is all based on credit. It is up the Lender what they offer you.

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.

Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, broker fee, processing fee, flood cert, etc can be paid for by the seller.

YOU CAN ALSO DO A FOR SALE BY OWNER - YOUR MORTGAGE BROKER WILL HELP YOU & THE SELLER FROM START TO FINISH, TO CLOSE YOUR LOAN. THE PERSON YOU ARE WORKING WITH, WILL ORDER TITLE, ANY SURVEY’S NEEDED, INSPECTIONS IF NEEDED, ORDER PAYOFFS ON SUBJECT PROPERTY IF THERE IS A MORTGAGE ON THE PROPERTY

Finding The home of your choice Pin down the basics, specifically the neighborhoods you like that will accommodate your family's needs, including commute to work, schools, recreation, shopping, and, most importantly, are in a price range you can afford. Have an open mind. It's easy to start looking at houses and get discouraged because you don't see anything that matches your vision of the perfect house. But be open to a home's potential. Remember carpet and flooring can be replaced, walls can be painted, and a dreadful kitchen can be updated. Think about whether the floor plan will work for your family.

On the Mortgage Broker Comment -No offense taken, but take into considerate that many banks are limited to their products & terms only. Where as Mortgage Brokers have many lenders & products to choose from. If a person walked into the Bank with a 565 mid score, a bank is going to tell them no. They can't to sellers 2nds etc. Banks have more rigid guidelines. And in todays society, not all have the 700 credit scores - trades needed or cash to put down onto a home purchase. Where as Broker can do creative financing to help THEIR client out. Banks do not like doing 100 percent financning, if a persons credit is imperfect.

As I mentioned to you, Good Luck - the Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process

Answer 8

Someone with integrity and who is speedy!
If you want to contact me, my husband is a mortgage broker & I'm a real estate agent. My husband can work with you to find out what you qualify for. Let me know if you are interested. What city/state are you in? We are in California.

Answer 9

W.E. and Hunter2 both have good advice, even if it may seem odd to most people to let a sales person refer you to another sales person. But hunter2 is right, right, right!
As W.E. knows, I prefer local lenders over mtg. broker but it sounds like she is a true professional and not a fly by night middle person. I am impressed that she is sharing info so freely and not just a website to sell to you. Contact her!

If you go to a mtg. broker on your own read the FEES section very very carefully!

Answer 10

Honesty and reliability. You want to make sure they are someone who returns your phone calls, and answers your questions, even if they have to go do some research to get the answer for you.
When checking them out, ask questions you already know the answer to, that way you check their honesty, and call after hours to see how well they return calls.
It's a good idea to check with your local BBB. See which brokers are listed with them and start there.