I was reading the news online and they gave some tips about mortgage brokers. So I have a few comments about these things they pointed out. There are a lot of new brokers in the industry. Interview your broker to see how long they have been in the industry and find out if they know their stuff! Finding out how long someone has been in the business does not always say they know their stuff! The only reason I say this is because I have been in the business a little over 2 years and a few people I know who have been in the business longer said they feel I know MORE THAN THEY DO! The only reason why they feel that way is because I educate myself and work this job 24/7. My boyfriend and everyone else thinks I am crazy for doing it, but when you have a job you have to create a passion instead of saying oh this is just a job. This is a sales job commission only. If I don't know what I am talking about and I lose a deal, there went my paycheck too. This is an easy job, but it's a difficult job.
A knowledgeable mortgage broker will usually get you a better mortgage rate than you could on your own. Remember that a mortgage broker is not limited to dealing with one or two lenders. Please make sure you are referring people to one or two brokers and one or two banks, if you must choose more than one person! Drives me crazy when someone says well the other mortgage broker is shopping around for me and they found this better deal. THEN WHY DID YOU CALL ME?
Once you have picked someone to deal with, you should stick with them. I THINK THIS IS A MUST! If your current bank comes back to you and says they will match the rate, tell them they're too late. They had their opportunity and they wasted your time. If you go back to them now, you are just rewarding their behavior. I TOTALLY AGREE WITH THESE STATEMENTS! A mortgage broker works their tail off to find the best deal, whereas a bank says oh yeah i can do that and they didn't do anything except for look at a rate sheet, talk to their supervisor and maybe their underwriter.
So in closing, I understand whichever mortgage broker picks up the phone wins, same for the bank, but make sure they have COMPLETELY different products to offer or something to differentiate themselves. Makes life so much easier for everyone, especially when it comes to that pre-qualification letter.