Ed's Blog

Refinances are on the rise, and buyers are coming back into the housing market in droves. If you’re considering refinancing, or buying a new home, congratulations; there hasn’t been a better time in years. However, that doesn’t mean that you should be hasty in your decision, particularly when it comes to choosing your mortgage broker.

To that end, for the next couple of weeks, I’m going to provide some tips for selecting a mortgage broker who can best serve your needs. Since there are dozens of things to consider, I’ll be posting questions for you to ask your broker in groups of three. Without further ado then….

1. How long have you been in the business?

There are a few reasons why you’ll want to know how long your broker has been in mortgage business. The first being that the length of time they’ve been a mortgage broker will give you some idea of how much experience they have. The mortgage industry, (like the stock market and the real estate market) is cyclical. That means that if you find a mortgage broker who has been in the industry for 10 or more years, they’ve undoubtedly seen the peaks and valleys of the industry and have remained committed to their career, and to serving clients even during difficult markets.

This doesn’t mean that a broker with less experience is inept or unqualified. Everyone has to start somewhere. But, you do have to consider the possibility that if a broker tells you they’ve been in the industry for six months; they may not be fully invested in their career. That is, they may change careers in a year, and therefore wouldn’t be able to assist you with future refinances or home purchases. On the other hand, if you find a broker who has been in the industry 20 or more years, you can probably count on the fact that they’ll be around to serve you for years to come.

2. How many loans have you closed?

This is another good indication of how experienced a loan officer is, and may help you feel comfortable in working with a broker who hasn’t been in the business a long time. If you find a broker who has only been in the mortgage industry for a year, for example, but has closed 100 loans in that time (particularly given the housing market of the last year); you can probably rest assured that they are successful for a reason. (Namely that they have been properly trained, and as a result, are very good at their job!)

On the other hand, if you find a broker who has been in business for 10 years but has only closed 20 loans, I’d keep looking for another broker.

3. What kind of training do you have?

Any broker worth their salt will gladly let you know exactly what kind of training they’ve received. If you find a broker beating around the bush, or giving a vague response to this question; steer clear. Professionally trained mortgage brokers will tell you exactly what courses they’ve completed, what programs they’ve received designations from, and any ongoing training they’re receiving. Naturally, the more training a broker has received, the better (particularly if it’s through professional organizations such as the National Association of Mortgage Brokers, or a state wide Association of Mortgage Brokers).

Ok folks, that’s it for today. I’ll be back in a few days with other “reminder tips” to consider before choosing your mortgage broker. Have a great weekend!