Mortgage Brokers - Posted by JPinPa

Posted by Ed Garcia on February 05, 2001 at 09:25:33:

Steph,

I’m so sorry; I went to Terry’s for the weekend to discuss doing another workshop.

I’ll call you today.

Ed Garcia

Mortgage Brokers - Posted by JPinPa

Posted by JPinPa on February 04, 2001 at 11:09:14:

When shopping for a mortgage broker, what specific services should I look for? Are most of them up to speed on creative techniques?

Are there any qualifiying questions that you would suggest asking?

How important are they in what we do?

Thanks You,

JPinPa

Re: Mortgage Brokers - Posted by Dallas Allbritton

Posted by Dallas Allbritton on February 10, 2001 at 13:13:34:

Yours is a very good question. I have not read the other replies but wanted to share the following…

As a mortgage banker (I provide the funds) and a mortgage broker (I find the funds) I caution investors ALL THE TIME about making their broker prove themselves before sending them business.

This industry is much like medicine and law although most consumers do not look at it like this, where there are specialty areas. Just about any lawyers can represent you in court for a divorce or criminal case BUT most people shopping for an attorney would look for one that specializes in those areas and likely end up with 2 attorneys not one. The same applies to medicine in many respects where Dr’s get certified in certain areas. In the mortgage industry there are no true designations, specialy training or certification required. Those of us that fund givernment (FHA, VA, HUD, etc.) loans have to get approvals from lenders to funds these loans but outside of this the only requirements are a state license and approvals from the lenders that fund the loans.

However special knowledge is needed for each area and working for/with investors does require the ability to "think outside of the box"
but within the laws of the states you are working in.

When you contact a broker about an investor deal ask A LOT of questions especially those about how they would do the deal for you. After their answer ask for proof that they have done what they are claiming. keep in mind that a Loan Officer is a fancy title for “salesperson” so before you allow yourself to be sold on them get some proof that they can deliver.

Ask them if they are a direct lender, “correspondent” lender or broker. A direct lender approves, funds and keeps the loan while a corresponded lender approves and funds your loan then transfers it to another company for the servicing (taking and reporting your payments to the credti bureaus). How many investors do they have to call on, what kind of “up front” fees do they have. What will you owe them if they can not do to the loan or you want to transfer the file to someone else. What are their fees, are they negotiable. How long have they been in business, do they have references, can you speak with any former clients, etc.

Re: Mortgage Brokers - Posted by Ed Garcia

Posted by Ed Garcia on February 04, 2001 at 14:17:10:

JPinPA,

A good mortgage broker is worth their weight in GOLD. The problem is, they all say that they’re good, and you never find out for yourself until you’ve tried them. The best way to get in touch with a good broker is by referral.

I’ve kind of been out of pocket for the last few day, but have notice several questions on the financial forum in regards to brokering. As a matter of fact some brokers are too creative, and can get you into trouble if you don’t watch them. The primary difference between going to a broker and directly to a lender is that a broker should know who will buy your deal based on you and your circumstances. They can take a lot of the guess work out of doing business, and prevent you from spending 30 days with a lender, and then get turned down. A good broker can package and present your deal, knowing how to get a yes, when the borrower may not give a proper presentation and go into get their loan rejected. I can’t tell you how many times I’ve gotten a borrower approved with a lender that they have previously been turned down with. I’m sorry to say that this doesn’t always happen, because some loan brokers are mediocre at best.

But for anyone to say that mortgage broker can’t be creative is a foolish statement.

If I had a choice of going to a mortgage broker or a direct lender, I would choose the mortgage broker. The reason is because the mortgage broker represents many lenders, and can match me up with a lender that will lend me the money.

Ed Garcia

Re: Mortgage Brokers - Posted by Steph in Tex

Posted by Steph in Tex on February 05, 2001 at 07:20:05:

I’m still lookin’ for ya Ed!
Try me at the office if you get a free minute.
512-328-9677

Steph in Tex

Thank you Ed. (nt) - Posted by JPinPA

Posted by JPinPA on February 04, 2001 at 19:21:49:

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