Re: What to look for in a good mortgage broker? - Posted by Ed Garcia
Posted by Ed Garcia on April 28, 1999 at 10:41:04:
Trout:
A Good Mortgage Broker is invaluable. The reason being as follows.
(1) They can pre-underwrite your deals and pre-qualify you.
(2) They can pre-qualify your potential buyers, helping you to market
your property.
(3) They can structure your deal correctly for a lender saving you time,
and from being turned down.
(4) They can shop your deal, getting you the best cost.
(5) They can package your deal correctly for a designated lender.
(6) They can negotiate and sell your deal to a lender, knowing if it
should be a deal for that lender or not.
(7) They will have more programs available then a lender that you would
go to, allowing you more options.
(8) They never run out of money, and there for would not tighten
up on their lending policy.
There is much more a good broker can do for you, these are just a few
things I have listed to remind us of their value to us.
How should you choose one ?
I would check around with different real-estate offices to see who they
are using. This should help you find a broker who is giving good service.
I would also run an ad that I am looking for a good money source.
This will not only find me a good broker, but will introduce me to other
investors as well who might provide me with hard money if I need it.
I would check in the phone book, and research the local lenders and
brokers in the area. Remember were looking for money in general,
not just brokers.
After I became aquatinted with a couple of brokers that sounded like
they might be good. I would arrange a meeting or luncheon with those
brokers and screen them.
The first thing I would do is just talk to the broker and ask them about
their experience and back ground. An experienced broker is
preferable, however if I felt like I came across a less experienced
broker who is hungry, that could definitely be a consideration
I would see how I feel about their personality, and if they would be
compatible with me. That is important, because I intend to have a
working relationship with this broker and communication can be
important down the road.
HONESTY:
I need to feel comfortable with this broker, and feel that I can trust them.
REFERENCES:
Don?t be afraid to ask them for references. If they are good
their not offended, If their offended, then that?s their problem. Don?t
let it concern you, your just protecting yourself.
SHOP YOUR BROKER:
At the beginning you don?t know the good guys form the bad guys, so
your going to have submit you deal to two brokers.
After the first couple of deals you will know about each broker and their
capabilities. This is important because you can?t put all of your eggs in
one basket, especially when the broker is un-proven.
You lively hood depends on it, so don?t be afraid to do this until you
know you have found a broker that you can depend on.
Ed Garcia