Shop the Loan Officer, Not the Mortgage

Oct 3rd, 2007 @ 11:30 AM by MortgageMentor

One of the biggest mistakes consumers make when seeking home financing is focusing on the loan product and not the loan officer or mortgage broker. I have always said that consumers would be better off shopping for the best mortgage broker they can find rather than the mortgage itself. Go ahead, let this concept marinate for a minute.

What most consumers do not understand is that while mortgages are a commodity, the mortgage broker providing the financing is not. At the end of the day, the consumer’s experience will be determined by the expertise and ability of the mortgage broker. Shopping for lenders purely based on interest rate is like shopping for an attorney based on their hourly rate. Not smart.

With the barriers to entry so low in the mortgage industry and the range of professionals running from part-time housewives to Harvard MBAs calling themselves mortgage brokers, consumers really need to do a better job of interviewing the people who will assist them in obtaining the largest financial product of their lives. A lot of the so-called predatory lending could be prevented simply if consumers put the same effort in selecting their mortgage broker that they do when selecting other professionals or even comparing features on a flat screen TVs.

Instead of just calling around for interest rates, consumers really need to interview their mortgage brokers to ensure they are the right person for the job. You should not be afraid to ask the mortgage broker personal questions about their qualifications and scrutinize them with a critical eye. A great mortgage broker will always have competitive rates, but shopping for a competitive rate does not always yield the same result.

Successful and reputable mortgage brokers build their businesses based on referrals from satisfied clients. Consumer would be wise to ask their friends, family, neighbors, and realtors for referrals. Once you have the names, discuss how long they have been in the business, their experience, request additional referrals that you can call, etc. Think of it as a job interview.

Most of all use common sense. If it is too good to be true, it probably is. Does the mortgage broker look or act professional? Some of the clues to look for are simple things like the mortgage broker’s email account. Emails such as RefiYou@aol.com should be a red flag. Does the company even have a website? Recently in Chicago, a mortgage broker was convicted of a massive fraud scheme. He had a dollar sign tattooed on his palm. C’mon people!

One Response to “Shop the Loan Officer, Not the Mortgage”

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   December 4, 2011 at 9:06 pm

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