Top 10 things to look for in a Mortgage Broker

The term mortgage broker has really come under fire in recent years, and with good reason. We have all known brokers whose dealings have been less than ethical at best and somewhat illegal at worst. For this reason, I have compiled a list of things to look for in an ethical, reliable, dependable mortgage broker. I would like to get my job title out of the list of 'dirty words.'

1. A good mortgage broker does not charge fees up-front.
   Prior to closing, the only out of pocket expense for you should be the cost of the appraisal. This fee is usually paid directly to the appraisal company at the time of the appraisal. After this, your financial concerns should be on closing costs and down payment.
2. A good mortgage broker will explain terms and jargon that is unfamiliar to you.
   You should not have to run to a real estate dictionary every time you have a conversation with your broker. Simply ask him to explain. If he does not, it only means that he is using your lack of knowledge in order to confuse you.
3. A good mortgage broker will redo the numbers as many times as it takes for you to understand them.
   You should only have to ask for a breakdown of payments, rates, terms, fees, loan amount, etc. Again, don't be embarrassed to show that you don't know. Use this as a learning experience.
4. A good mortgage broker is available.
   It should not take a week to have a call or an email returned. You really should be a priority.
5. A good mortgage broker under promises and over delivers.
   There should never be negative surprises at closing. You should be provided with a good faith estimate very early on in the loan process and if anything is different at closing, it should be to your benefit.
6. A good mortgage broker gets your prequalifications done within the hour.
   If you're in the process of getting prequalified, that means you are about to go out looking a prospective properties. Your broker should not be impeding this process. You need someone who is on top of things, almost as though he were investing his own money in the property.
7. A good mortgage broker works with a good number of lenders.
   You really don't need a broker who is in the pocket of only one or two lenders. This person is not serving your interests. He is serving the interests of the lender. You need someone who is looking out for you and who will find you the best program for your situation.
8. A good mortgage broker is intelligent and knowledgeable.
   He may not have all the answers, but he does have a great deal of them. He speaks intelligently and he listens to you when you speak.
9. A good mortgage broker does not answer the question if he doesn't know the answer.
   Beware of people who promise you the world and then change the story thirty-five times. Of course, some things change in the course of getting a loan, but if this is the standard and not the exception, you need to find someone who will admit that they don't know, but who will find you the answer promptly.
10. A good mortgage broker is personable.
    I saved this for last, as it really is the least of your problems, but this is a person with whom you are going to have to have a great deal of contact. This is also a person who is going to share one of the most exciting (but also stressful) times of your life. This really is no time for a personality clash.