What to ask in a mortgage broker interview.

By: Chelsie Cheesborough licensed real estate agent
June 12, 2016

How do you buy a home with straight out cash? The easy answer is that you don’t; the odds that you have 2 or 3 hundred thousand​ dollars saved up to buy a house for cash are slim to none.

People are buying​ homes. They are doing so because they are able to get financing.

Financing photo

Financing photo

Interest rates are low right now, which makes it a very good time to buy a home. So how do all of these buyers find financing? Who is showing them where to go? Their bank?
A private lender?
Another bank?
A lot of people go to a mortgage broker,​who according to
nolo.com “acts
as your agent to “shop lenders” for the best possible loan terms, given your financial
situation and goals
.”

How do you find a broker? Ask your agent! We are more than happy to give you a few names to
look into. Now it is completely up to you to decide which broker you like the best, but we can
give you some pointers here. You get to interview these brokers and decide who you feel will
work the best for you.
So why should you use a mortgage broker​at all? Can’t you just go over to the closest bank?
Well, you could but when you are looking for a car, do you just buy the first one you see? I didn’t
think so.

While you are deciding on that dream home and working, and raising the kids, and packing the
house, OH and don’t forget to feed the dog. Get my point? You don’t have time to sift through all
of the details of a lot of things you may not understand of each mortgage company out there,
plus the broker can probably get better deals from relationships ​that have been built up over
the years
.
Now, what to ask when you are interviewing them? After all you have never done this before,​
right? Even if you have we may have some fresh ideas for you.
#1 What type of mortgage is best?
If they answer you right away, just leave. No, I am joking,​but do proceed with caution!
homebuying.com says that a reputable broker will
find out more about you before throwing this answer out there. There are a lot of options, and
none are just flat out better than others, it just depends on you and your finances. Without
knowing your situation, a broker cannot give you a good loan recommendation.
Don’t be scared to ask questions about these loans. Until you fully understand your options, you
won’t be able to really know which option is best for you.
#2 How Do You (the broker) Get Paid?

This question comes straight from
zillow.com. You may have
some pull on this one. Mortgage brokers make their money different ways, but a common
practice is to mark up the interest​ on the loan by adding points.​Make sure you understand how they get paid fully, because you may be able to negotiate their fee and save a decent
amount of money in the long run.
#3 How Long Will it Take to process my Loan application?

Some people just get stuff done faster​, am I right? You do not want to wait for 6 months to hear
back from you mortgage broker.​ Now; mortgage brokers do​ get busy, so according to
bankrate.com it could take
anywhere from two weeks to 60 days. While the latter is stretching it for me, If you love the
broker and feel like they can give you the best deal, then you may want to wait.
#4 What do You Offer First Time Home Buyers?

Of course you would only ask this if you are a first time home buyer. The broker may offer a
special rate or perks to earn your repeat business in the future.
premierfinance.net says you will want to be sure the mortgage broker is
willing to tailor to the needs of a first time homebuyer, because they will more than likely need to
explain the process in more detail.
These are just a few ideas, feel free to ask any of us, as your agent​ we will possibly have some
insight into your situation, and could suggest more questions. Keep in mind
nytimes.com says brokers are not tied to one lender like banks, so you will get variety in your
mortgage options. It is always good to take notes during an interview with a mortgage broker.​
You get to choose who you like best on this. It is an exciting time, and you deserve to
understand and choose which loan is best for you.