Two out of three Americans work with a mortgage broker to purchase a home because of the broker’s expertise and wide selection of loan products. However, with so many “experts” out there, how does one separate the good from the not-so-good? What can you do to determine if a broker is honest? And how do you know if they really are an expert or not?

According to the National Association of Mortgage Brokers, 70 percent of brokers are considered 'legitimate", meaning they have safeguards and policies in place to make sure that they stay on the straight and narrow. So what about the other 30 percent? Well, the whole 30 percent surely aren't crooks! But just as in any classroom, you’re going to have those at the top, some in the middle, a few at the bottom, and others who simply don’t show for class. Obviously, those at the bottom and the no shows would not be your first choice if you were going into surgery and they were holding the scapel, nor should they be handling your loan when you purchase a home or refinance.

The recent real estate boom has increased the number of mortgage brokers in the past few years, and there are plenty of incompetent and dishonest brokers out there. In order to avoid the bottom 30th percentile, we offer the following advice to help find a mortgage broker that is not only an expert but honest and reputable as well:

1.

Don’t believe everything you hear. Asking friends or family to recommend a mortgage professional is usually the first place people start. However, how do they know the broker is reputable and trustworthy? Check with your state regulatory offices and licensing bureau once you have some referrals. Better to be safe than sorry.

2.

Use an NAMB certified mortgage broker. Brokers certified by the NAMB practice the highest ethical and professional standards in the industry. A list of certified brokers (by state) is included in our guide "Closing Costs Insider Secrets".

3.

Their are a group of brokers that will disclose their fees to customers in writing in advance at the customer’s request. They also disclose the wholesale prices they receive from lenders. A list of these fee-disclosure brokers is also included in our guide "Closing Costs Insider Secrets".

4.

Honesty is the best policy. If a mortgage broker suggests that you lie on your loan application in any way, he/she most likely falls direclty into the dishonest category. Walk away.

5.

They need to show you the money. If a mortgage broker doesn’t disclose your closing costs in three business days, it’s probably best to take your business elsewhere.

6.

If you’re not bleeding, they shouldn’t be applying pressure. A mortgage broker who pressures you into anything you are not comfortable with probably failed ethics. No reputable broker will pressure you into anything you don’t feel comfortable with.

7.

There are no stupid questions. Does the mortgage broker answer all your questions to your satisfaction? Are his/her answers straightforward, honest, and respectful? Does he know the answers or does he need to "check on that"?

8.

Do you have any reservations? If you feel comfortable with whom you’re working with and feel like they have answered all your questions and put all your reservations to ease, you’ve probably found a good mortgage broker.

Want a fool-proof way to know if your broker is working in your best favor?

It's important to keep in mind that any broker you use for your loan with have his/her best interest's at heart since they work for commission. By using a mortgage consultant, you can have an unbiased third party, to look over all of your paper work and make sure you are getting the best deal possible. We can help you be sure your broker is legitimate and that you are not getting taken advantage of. If you opt for our "Premium Consultation" service we will even negotiate directly with your current broker or lender. Remember all these services guarantee you will save money or we will refund your purchase 100%

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