A mortgage broker deals with both the mortgage lender and mortgage borrower acting as their intermediary officer. He facilitates business deals and agreements but he is not a party to the business contract or transaction. He usually collects all the paper works from the borrower, communicate and update new reports to the lender who will then approve the loan. He earns from the origination fee coming from the lender.

You must be cautious in selecting brokers. Here are some tips in how to evaluate a good broker. One sign is that he is always recommended from one client to another. He does not make solicitations because he enjoy referrals coming realtors and customers. It is better to choose those who are already tested than those who are not because you can ask information and background check from your friends.

A good broker is a good financial planner, analytical, and perceptive. He usually consider and weigh the financial situation of his clients and determine if the property is enough to cover a mortgage. Also he uses an analytical tool to answer your questions like spreadsheets and calculators. It means that he wants to be transparent and assure you with concrete results.

The next sign is that he is a good listener. He must ask essential matters to his clients such as actual needs, financial capacity, and preferences. He must have these information because this will determine what he will recommend to fit your application to the lender. He can also make you spill out your plans and economic stability.

Another sign is that he works for your best interests especially in contracting with the lender and other parties. He will also guarantee the exact lender fees in good faith assessment in order to avoid fee escalation at closing. He will also look for the best consideration in case of third-party charges like title insurance. Others would offer special discounts, rather than asking for a Christmas present.

A clue that makes him an unworthy agent is that he gives and insists you an answer right off the bat without even scaling or estimating the important facts and possible outcome of the project. He also pretends that he know what kind of mortgage suits you without even learning in-depth investigation and clear understanding about your current situation.

Avoid also those who request and offer the pricing fees without first asking and coherent about the kind of transaction characteristics, number of borrower, income and assets files, the type of property to be mortgaged, loan purpose, down-payment, credit score, and loan size. If these important details are unknown, the quoted price is definitely ambiguous and inaccurate.

Lastly, a good mortgage broker is a master with details without overlooking minute details especially the closing which would be very expensive to most of the borrowers. He will keep you informed about the status quo of your loan and other important dates. Choose the one who has good communication skills and most experienced in these kind of business transaction. Keep in mind that this is risky, better be cautious than its too late.

Author Bio: A career as a mortgage broker can be very rewarding. If you have a good head for numbers, consider enrolling in mortgage broker courses.

Category: Finances
Keywords: finance,mortgage,banking,money,savings,services,studies,careers,home,real estate, business, family