Ed's Blog

I’m back with a few more questions (questions 7-9) (see earlier blogs for more questions) for you to ask your mortgage broker (or lender) before you agree to work with them. Remember, a mortgage loan is likely to be one of the largest investments you’ll ever make, so it’s important that you’re working with a qualified mortgage broker. Here are a few more questions to keep in mind:

1. How Many Lenders Do You Work With?

Credible, reputable mortgage brokers will have great relationships in place with multiple lenders. Be wary of brokers who only work with a handful of lenders, as that may indicate that they are either very new to the industry, or that they have tarnished relationships with other lenders. But also be wary of brokers who work with an infinite number of lenders as that may mean that they don’t have solid relationships in place with specific lenders (offering specific products that you may need).

2. How Long Can I Expect It To Take To Hear Back From You?

Ask a potential broker what their turnaround time is for returning calls and emails. Will you hear back from them the same day? Within 24 hours? Because many aspects of the loan application and transaction are very time sensitive, you’ll want to make sure you work with a mortgage broker will be timely in his or her response to you and to others involved in your transaction.

For brokers with a solid track record, you should know that sometimes you won’t hear back from them directly. They may have an assistant or a team member who will respond to you. While you may prefer to work directly with the broker, rest assured that if they are busy enough to have an assistant, or a team working for them, it’s because they are very good at their jobs. That means that their team member or assistant who responds to your call or email will be quite capable of answering your questions, and providing you with the information you need.

3. Do You Belong To Any Industry Associations? Which One(s)?

Nearly all tenured mortgage brokers will belong to at least one industry association. These may range from a local chapter of the Board of REALTORS®, to membership in for example, the California Association Of Mortgage Brokers (CAMB), to membership in a national organization such as the National Association of Mortgage Brokers (NAMB). Membership in organizations such as CAMB or NAMB will confirm that your broker has voluntarily agreed to abide by a strict code of professional conduct. You will also be able to seek out public information on these brokers through visiting the websites of the organizations.

Hint: if you are speaking with a broker and they are not a member of any industry associations, you may want to steer clear. Membership in industry organizations demonstrates that a broker wants to work towards bettering the industry as a whole, and that they have a passion for their profession aside from just collecting a paycheck.

That’s it for now. More tips coming soon. In the meantime if you have any other questions, feel free to leave a comment, or call 415-406-2330.