Finding an Ethical Mortgage Broker

The recent collapse of the real estate market – particularly the sub-prime mortgage industry – has caused many people to take a second look at mortgage brokers. Despite how the media portrays them, as an industry there are still ethical mortgage brokers to work with out there. The trick is in finding an ethical mortgage broker that is willing, able, and available to work with you.

Mortgage companies (and therefore mortgage brokers) will offer different rates and programs to borrowers depending upon the borrower’s financial standing. It is important that you take the time to look at several different mortgage brokers to find the one that offers the program you need at a price you can afford.
Many Brokers have speciality niches they focus their practice on such as credit challenged buyers, Seniors with Reverse mortgages, New Construction etc.

Remember that a mortgage broker is NOT the lender; they are a bridge between the lender and the borrower. A broker will interview the borrower to find out what they need and then search for the right loan program and lender to meet those needs. The broker is the middle man nothing more; however mortgage brokers are paid a commission for bringing the two together and may often have funding sources NOT available to borrowers who go to a bank for financing. In fact Brokers often have the widest variety of mortgage programs and can tailor one to fit your needs. The guidelines of these programs may often be more liberal than programs offered by Banks.

Tips for Locating the Right Mortgage Broker

1.    Talk with people you know who have worked with a mortgage broker in the past. There’s nothing like a good word from people you know to help you choose the right mortgage broker.

2.    Talk with your real estate agent and see which mortgage broker is recommended by the company. Remember, however, that you do not have to use that broker; you can choose another.

3.    Check with state or national mortgage broker organizations to see if the person you are considering is listed with the organization.
4.    Do an internet search. Technology has made it easier to research a company or person to uncover any complaints before you begin working with them.

5.    Contact the Better Business Bureau in your area. This is another easy way to uncover if a company or professional has had complaints from past clients.

6.    Contact the mortgage broker directly. Ask for an appointment to sit down and interview them. You want to feel comfortable who you choose to assist you with the purchase your home.

7.    Ask for references. When you do meet with the potential mortgage broker, ask for references from other clients that he or she has worked with in the recent past.

8.    Many Brokers around the country are members of The National Association of Responsible Loan Officers ( NARLO) or MBAA and NAMB and therefore must abide by a higher standard and code of ethics.

Finding an ethical mortgage broker is your key to the right real estate loan. It is important to find a person you’re comfortable working with and you feel you can trust. If there comes a time when you feel pressured by your mortgage broker it may be time to walk away. An ethical mortgage broker will hear your needs and then find a product to meet those needs instead of trying to push you into a loan just to get a commission.