I am currently shopping for a mortgage broker to add to my team. I would much rather have someone else help me with this part of the business so I can focus on other aspects.
I have heard more than once that I need to be careful about who I choose, that they are not all ethical and that some will actually “steal” deals out from under you.
Can I get some advice on how to shop for a good mortgage broker that I can build a good relationship with through trust and dependability.
Some background information:
I am a buy, fix and sell rehabber with 12 years experience as a home renovation contractor. I have a sizable equity line of credit to use. The last time I checked, my credit score was 720. So, I have experience, money and credit. I have been educating myself on REI and going to homes in my target areas to get a feel for the current values.
I have looking for wholesalers to buy from but am not having much luck with that - the only one’s I have located so far already seem to have strong buyer’s lists and I haven’t been able to obtain any leads through them yet. I have made the commitment to go ahead and locate the properties myself for now and see how it goes from there.
I would like to find a motgage broker that will represent me well by locating funds with the best value (rates, terms, etc.) available as fast as I need it so I can close quickly. I need to be able to depend on this person’s honesty, integrity and professionalism. I need someone who has multiple resources to tap into.
I haven’t found any seasoned investors yet who I feel have made a good recommendation (based on further questioning). Where do I start looking, besides my local REIA, and what type of questions should I be asking?
Debra,
Try to pick someone local that has a great reputation. Talk to several Real Estate Agents that have had successful closings with them and also talk to Title Companies in the area. They see many sets of docs and they know when they are looking at something that is not ethical. Also have them give you a quote on a thirty year fixed mortage and get a good faith est. And look things over to make sure you don’t have any pre payment penalties and make sure you are not paying a bunch of points. Do your due diligence on your broker just as you would buying a property. Every bit counts.
Good luck to you and please feel free to shoot me an email if you have questions.
Thanks for the reply Chris. It is GREAT to hear from a loving and supportive husband who is happy to put himself out there for his wife. I’m sure she is an awesome professional.
Good advice Ramona. I really would prefer working with a local mortgage broker who I can sit down and talk with face to face. I seem to have more of an impact when I am face to face with people and I know I can tell quite a lot about a person from watching their non-verbal signals.
I was wondering about how I was going to be able to determine if a loan offer is not really the best deal for me (more to the broker’s advantage than mine). I don’t feel confident I am going to be able to tell if it isn’t a good deal that I am being offered. The financing aspect of investing is my weakest aspect and I’d like to be able to bulletproof myself a little better.
Folks have already given you some great tips with their posts. I would like to add that, if during your interview with a possible broker partner, they indicate they would “fudge documents” or allow iffy behavior on your part to get a loan, you should steer clear. Eventually, those types are brought up on charges. I suspect regulators will start to crack down on lenders as foreclosures rise. Folks will get a smart attorney and start to bring to light lender fraud in defense of foreclosure actions. I myself have seen many loans that should never have been given to people who are now facing homelessness. Stay away from those who hand you documents to sign that don’t have all the blanks filled, don’t spell your name right, etc. You want to know exactly what they are telling the underwriters. It’s still all on you if loan fraud is suspected, even though your broker filled out the papers. Look for one with many contacts who calls you back when they say they will and who will keep looking to find loans that fit you. Good brokers with a good rep are always getting presentations from lenders. It took me three months to find a guy who could get me decent rates on a no doc basis. He kept looking and I am greatful that he just didn’t try to push high rate products he had “in stock”. Weeded through over a dozen who either didn’t know what an investor loan was, or didn’t call back when they didn’t have a product to push at the time I called. I did explain ahead of time exactly what I planned to do with my real estate business and was ready with credit scores and documentation of my assets at our first meeting. Many states have web sites that list brokers who have been disciplined. Those of you in IL can visit my site’s resource page for an example. Time is well spent to find a good broker. They are not only valuable to you, but to your buyers later on.
This is great advice Kim - just the kind of stuff I am looking for. I guess this confirms my suspicion that I really do need to get knowledgable and be diligent. Looks like I’m going to be knee deep in studies on morgages and financing for a while.