What a Mortgage Broker Should Do!

Amidst the negativity surrounding the credit crunch and housing market I thought I would shed some light on the "mortgage broker" and what a GREAT one does and does not do. First, let me say that a mortgage broker has his or her spot in the mortgage community and the good ones truly do add value to ANY mortgage transaction. I have been delivering mortgage products for over 10 years and have seen a bank, credit union, and retail lender in action. If the later had the best products and motivation to deliver them believe me I would be present at one of those institutions. The raw reality of the market is that GOOD mortgage brokers have a distinct advantage over all of those institutions. Why then do some mortgage brokers get a bad reputation? Simple, they do not and will not put the client first! There is a right way and a wrong way to deliver solid lending advice and I would like to summarize just a few of these below.

A good broker will put the client first regardless of the loan, loan size, and background of the client. I have done financing for loans $23,000 and I have done some as high as $1.7M and one thing remains true in both of these examples; I put the client first! A true mortgage lender will do what is right for the client, whether that is recommending a different loan program, suggesting they wait to buy a home, or helping them with credit issue when no monetary value will come of it we need to do what is right!

A good broker will also make the client aware of the "unknowns" in any mortgage transaction. Why would there be any "unknowns"? Most of the time we are unaware of what the homeowners premium will be, what the real estate taxes are, the exact dollar amount needed to close etc. A good lender will shed light to the client exactly what "unknowns" are and how they play a part in the lending transaction.

A good broker will know and understand what mortgage product fits the needs of the client. Whether that's a USDA loan, an ARM loan, a fixed loan, a VA or FHA product and yes at times perhaps even a product that a bank specifically has access to, for instance the Bank of America ACORN program or First National Bank's physician program. We must know what is out there and what is the best fit given the clients needs. A good broker knows his trade and takes pride in educating himself or herself daily on the market trends and changes to key products that might affect his clients loan.

My final point really should not need mentioning but you'd be surprised what goes on out there. A good broker is honest, ethical and morally forthcoming regardless of how this affects their pocket book. A good broker does the right thing, says the right thing, and lives the right thing with every phone call, every client, and every closed file! Now there are numerous other characteristics I could point out but the above are just a few key points that I would like to make.

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