Choosing a Mortgage Broker

If you didn't catch this, it was in the New York Times over the weekend.

BEFORE buying a house, borrowers will undoubtedly do a thorough check of the property, examining its structural soundness and the surrounding neighborhood, among other things; they will research the best type of loan, comparing interest rates, terms and fees. But not all borrowers do due diligence on their lenders.

For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements. Some states, like New York and New Jersey, require mortgage brokers to complete criminal background checks through the state police.

Many experts suggest that borrowers focus more on the individual who would be their mortgage broker, loan officer or loan originator than on the bank. Among the questions borrowers should be asking them: How long have they been in the field? How well or promptly do they answer questions? Do they want to know the borrower’s financial goals? A look at their work experience and background on their LinkedIn profile may also be helpful.

Good mortgage brokers are forthcoming about their backgrounds, they are good listeners, and helpful with personal-finance questions.

Governmental and quasi-governmental sites may be helpful. The National Mortgage Licensing System has a consumer access site that allows visitors to check the backgrounds of mortgage professionals. The Federal Deposit Insurance Corporation site has a worksheet to help consumers compare lender policies.

Sounds overwhelming. It isn't. Call me. I will guide you.