Even if you have a friend or brother-in-law who is a mortgage broker, they may not be the best choice to handle your home mortgage refinancing package. The true test of a good broker is one who works with you during the entire process and one who is not willing to push you into a loan that is not right for you just in order to gain the commission off the deal. Yet, it is difficult to know how a broker will operate until after it is too late. Here are some tips to help in your decision about the loan broker you want to represent your interests in the financial package associated with your mortgage loan.
Reputation
When looking for a broker to handle a home mortgage refinancing package, one of the first things you should review is the reputation of the broker for honesty, integrity, professional standards and fair dealing with customers. Make certain you understand who the broker is working for. Typically that is the lenders. The broker receives a commission for placing loans. His or her income depends on selling a loan. Some brokers will attempt to fit you into a particular mortgage loan or refinancing package even though it may not be the best suited for your financial situation.
Referral
If you are looking for a broker to prepare your home mortgage refinancing package, a referral from a trustworthy friend, neighbor, co-worker, or family member is a good recommendation for the broker. You can also look online at such sites as the Better Business Bureau and at forums where complaints against businesses or individuals can be registered. In this instance, no news is good news. The due diligence you do before selecting the broker to represent your interests can mean the difference between a positive experience and a financial disaster.
Total costs
A number of elements roll into the total cost of the home mortgage refinancing package. Your broker should be prepared to list and explain each of those costs, including those that are broker related. Beware of costs are appear to be different names for the same type of service. Ask for explanations of those you aren't sure of. Some of the costs included on the loan documents may be negotiable, so ask if you are so inclined. If something looks odd, you always have the option of selecting a different broker and starting over.
Experience in Local market
When you are putting together an application for home mortgage refinancing, be sure you look at local experience in selecting your broker. Although the big city brokers may be very good at what they do and may have extensive experience in putting together mortgages for residential housing, they may not be at all equipped to deal with a refinancing package on a rural farmhouse located on 140 acres of land. Even if the advertising and the rates sound great, you may be better off to look at a local loan broker who is familiar with the idiosyncrasies of the local geography, economy and growth patterns.
