Finding a Good Mortgage Broker

Broker, loan officer, loan agent, loan professional, whatever. Your mortgage loan experience depends largely on the competence, ethics, and dedication of your loan professional. A good one can make the process so smooth you hardly know you’re in escrow. A bad one can wreck your marriage, make all of your hair drop out, and have you falling off bar stools in no time. Okay, maybe that’s a slight exaggeration. But a good loan officer can get you a good loan and make sure you aren’t miserable in the process. A good loan pro is someone you trust and someone whose recommendations you have faith in. Here’s how to find one:

GOOD Lenders * Return your calls. Within an hour in most cases.

• Explain themselves. If they recommend a mortgage loan product, they can tell you why it’s the best one for you. And they know mortgages well enough to explain programs and lending terms in plain English.

* Offer choices. In most cases more than one kind of loan will work for you. A good loan professional offers alternatives, gives you the pros and cons, and helps you make the best choice for your situation.

* Ask questions. The right loan depends on many things. How long do you plan to keep the property? Do you expect increases or decreases in income, such as college graduation or retirement? Does your income fluctuate? Are you a risk-taker or do you want to feel safe even if it costs more? If your agent isn’t asking questions, find one who does.

Consider your comfort. Would you feel better if you could get your loan documents early and review them at your convenience? Would you prefer your loan officer to attend your loan closing? Do you want detailed explanations? Or do you prefer to “cut to the chase” and limit your involvement? Your loan agent’s work style should reflect your* preferences, not his or hers.

• Thinks on his or her feet. Your credit report came in with an unexpected booger. Your business income was less than you thought. The property appraisal came in at a lower value. The lender discontinued the program you wanted. An underwriter has a question about your employment. Most loans get at least one monkey wrench thrown into the process at some point. A good loan agent prepares for these possibilities and solves the problems.

BAD Lenders: * Are invisible and unavailable. They’re playing racquetball whenever you call. But no one in their office knows where they are. And of course they don’t call you back.

* Push the same loan on every client. Probably the one that pays the highest commission. Or the only one they’ve bothered to learn about. If you tell your agent you have 20% down, want the lowest rate, and you’re selling your home in five years, she should have a very good explanation for trying to shove you into a 30 year fixed FHA loan.

* Don’t care about your comfort zone. They encourage you to take the highest loan amount you can qualify for, or push you into riskier loans than you want. If you get the feeling that your loan officer and your real estate agent are tag-teaming you, they probably are. Replace them BOTH and find someone you can trust.

* Are lazy. They hand you a stack of paperwork and expect you to be their secretaries. They make weird requests–for the details of your messy divorce, a letter from your CPA about your lingerie parties, or they order you to get your septic tank drained and inspected–all of these can be legitimate underwriting requirements–but don’t bother to explain why.

* Don’t communicate. They change your program or rate without consulting you. They don’t explain the disclosures, instead saying, “It’s all right there on the form.” Or they hide behind jargon, explaining, “Well your rate is higher because the loan is a NINA program and your LTV requires an underwriting exception and the doc draw was delayed so we blew the lock.” Right. Get out of there fast, clean the BS off your shoes and find a lender who will be straight with you.

* Don’t know. When the lending boom was in full swing, everyone wanted to be a loan officer. The guy on the other side of the table may have been selling used cars or timeshares the week before. And if they don’t know the intricacies of lending–the many products, underwriting guidelines, and required legal disclosures–they can’t do a good job for you, however motivated or nice they may be. Becoming a good loan officer takes time and effort.

Bad loan officers lack the work ethic, experience, or motivation needed to be good loan officers. And while some may learn from their mistakes, get more experience and knowledge, and eventually become good loan officers, you don’t want to be the mistake they learn from, do you?

So when you are shopping for your home loan, look at more than rates. Check with several lenders, find two or three with good rates, and speak to their loan agents. See who can explain programs and mortgage terms like APR, and tell you how rates are determined. See who asks you questions about your lifestyle and finances. See who returns calls promptly and makes your part as easy as possible. Once you find the agent with skills and integrity you want, start your application. And stay off those bar stools!