So, like most of us, your finances are probably tight. You may consider your alternatives and sift through various house refinance offers you receive in the mail and realize that if you refinance your mortgage, you may be able to get some money from the equity in your property. So you look at one of the advertising you got in the mail or via email, respond to the first offer that appears good, and sign up with the mortgage broker you contact or email, right? Hopefully, your response will be… WRONG.
We have discovered firsthand that you should ALWAYS examine your choices to avoid working with an independent mortgage broker who will try to defraud you by adding outrageous fees to your mortgage or making promises they know they cannot keep. Unfortunately, it is not uncommon for an independent mortgage broker or their associates to write letters or proposals that lead you to believe you will receive a fantastic mortgage rate. Still, it is critical to read the tiny print.
Often, the letter is used to entice you to phone their office, and if you’re not one of the lucky few who qualify for the stated mortgage rate, they’ll try to convince you that they can get you into a terrific mortgage package that will work for you. That’s fine as long as you don’t commit to working with an independent mortgage broker until you’ve had a chance to learn more about them.
The following are essential questions to consider:
1) What is your company’s name or the company with which you are affiliated?
2) How long have you been in the mortgage industry?
3) How long has your company or that of your affiliate been in business?
4) How much do you charge as a mortgage broker?
5) Do you have any recommendations or testimonials from previous clients?
6) Could you please provide your contact information?
7) Which banks do you collaborate with on credit products for your clients?
You should pay close attention to how the independent mortgage broker you’re speaking with response to these inquiries. If they stumble about answering these questions, you should reconsider working with them. If you don’t get clean answers now, don’t expect them later in the refinance process…and you might be in for some unpleasant surprises when you sign your closing agreements. You also don’t want to offer your personal information to someone you don’t know because they could trick you.
Consider the following options:
1) Look for a second mortgage broker (look until you find a broker you trust…this could take 3 or 4).
2) Locate a good broker... mortgage or remortgage consultant with a proven track record (if you come across an independent mortgage broker with no track record…you should probably keep looking).
3) Ask a friend or family member if they can recommend an excellent mortgage broker with whom they have worked.
The most crucial element is considering your options before engaging with an independent mortgage broker. It’s worth your time to do your homework; it beats the alternative of being locked into a mortgage with inflated fees and interest rates for years or dealing with fraud.
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