Interviewing mortgage broker?

shakinros · December 2013

Hi all,

Lurker here, first time poster. I really appreciate all the advice shared here; it's been very motivating!

My H, DD and I are about to move to the east coast to be closer to family. We would like to buy a house when we get there. A friend who is a real estate agent set us up for a phone call with a mortgage broker he works with in the area. We're first time home buyers so I don't know how to go about assembling the team if people we will work with.

First, is it customary to interview brokers? Or do you pretty much just go with whomever you get a recommendation for? What kinds of questions should we be asking?

brij2006 · December 2013

You can actually cut out the middle man, and do the mortgage searching yourself. Then you don't have to pay a brokers fee's, and can know and understand exactly what type of loan you are getting.

We called around to multiple local banks to see which ones had the best rates, terms, didn't sell out their loans to an outside company, and didn't charge fee's for paying off the mortgage early. Then we filled out the application for the bank that fit our needs and had the best product and rates.

Ducktale · December 2013

We did not use a mortgage broker, we just went to a bank. I believe this is somewhat of a regional thing, in my area no one uses brokers. We shopped around a little, but there are so many variables. Interest rates do NOT tell the whole story.

hoffse · December 2013

We did not use a mortgage broker, we just went to a bank. I believe this is somewhat of a regional thing, in my area no one uses brokers. We shopped around a little, but there are so many variables. Interest rates do NOT tell the whole story.

**Stuck in the box

I think this is the way it works for most folks. A mortgage broker has to get a commission on every mortgage s/he sells (I think?). Going directly to a bank usually lowers the cost. That said, it doesn't hurt to call around. H and I may end up going with a mortgage broker because our firms have a few as clients, and they will likely give us sweetheart deals. You never know what sorts of packages they can put together.

MommyLiberty5013 · December 2013

I understand wanting to support a friend's business, but buying a home is a costly business/financial matter and IMHO, one should not mix the business with the personal relationship.

If a deal goes south and you are not happy with the services you are getting, then it is hard to cut ties while still not hurting a buddy's feelings. Also, a "friend" might not have as much of an incentive to work as hard for you, s/he may think, "Oh these are friends, I can be laid back and they won't mind."

To find a REA, call the local companies in your area and ask for the top 2 or 3 REAs based on sales in the past 6 months. Then, call them and speak to them on the phone, stating that you are interviewing REAs. Narrow your list to 2 or 3 and then meet those people in person.

Pretty much all REAs are nice. That should not be part of your criteria. You want someone who listens (doesn't try to up sell you), who explains (like a teacher), who is technologically savvy (some REAs are dinosaurs), and who can negotiate (very important to get the best deals).

shakinros · January 2014

I'm with you @mommyliberty5013. Our friend is not going to be our realtor - he doesn't specialize in the area we're looking in anyway. I do want to support his business but all we're going to be doing on that front is asking him for referrals. We will still do our own interviewing and choosing.

Interviewing mortgage broker?

Re: Interviewing mortgage broker?

Choose Another Board

Search Boards