Mortgages are as unique as the brokers who make package and sell them. There are many different types of mortgages on the market and different brokers. The recent real estate collapse clearly indicates there were plenty of brokers out there who are only concerned with making a quick buck, it doesn’t matter who the borrower was and in some cases deceased individuals were even getting mortgages. So it is imperative that you find a good, reliable broker. One who has established a good reputation and has lots of satisfied clients.
You should look for someone you can establish a good working relationship with. Try to get referrals from people you trust, word of mouth is often the most reliable advertising there is. Meet with the broker and see if you have good communication with them. Ask upfront if they make client needs a priority. Is this someone you trust? Keep looking until you find a solid connection.
You’ll also want to know what the broker will do for you. A good mortgage broker is working hard to find you the best deal in the market place. He does this by taking your personal information and pricing it out to various mortgage companies. Wen he has found one that works with you he should work hard to get you a good deal. Some brokers start tacking on all sorts of fees at this point. You’ll need to make sure you’re getting a good rate and not paying high fees.
Though mortgage brokers don’t work for free, they don’t necessarily cost you anything either and a good one will save you money. Many brokers are paid a finder’s fee by lenders for bringing your business to them. If you aren’t sure how your broker gets paid though – just ask. The Real Estate Procedures Act gives you the right to know. You also have the right to know the amount of the Yield Spread Premium, if there is one.