Korene's Blog

Finding an Ethical Mortgage Broker or Mortgage Banker The recent collapse of the real estate market – particularly the sub-prime mortgage industry – has caused many people to take a second look at mortgage brokers and / or mortgage bankers. Despite how the media portrays them, as an industry there are a number a extremely ethical mortgage brokers to work with out there. The trick is in finding an ethical mortgage broker and or mortgage banker that is willing, able, and available to work with you.

Mortgage companies (and therefore mortgage brokers and / or mortgage bankers) will offer different rates and programs to borrowers depending upon the borrower’s financial standing. It is important that you take the time to look at several different mortgage brokers to find the one that offers the program you need at a price you can afford.
Many Brokers have speciality niches they focus their practice on such as credit challenged buyers, Seniors with Reverse mortgages, New Construction etc.

Remember that a mortgage broker is NOT necessarily the lender; they are a bridge between the lender and the borrower. A broker will interview the borrower to find out what they need and then search for the right loan program and lender to meet those needs. The broker and often a mortgage banker is the middle person nothing more; however mortgage brokers and or bankers are paid a commission for bringing the two together and may often have funding sources NOT available to borrowers who go to a bank for financing. In fact Brokers often have the widest variety of mortgage programs and can tailor one to fit your needs. The guidelines of these programs may often be more liberal than programs offered by Banks.

Tips for Locating the Right

Mortgage Broker or Mortgage Banker

1. Talk with people you know who have worked with a mortgage broker in the past. There’s nothing like a good word from people you know to help you choose the right mortgage broker.

8. Many Brokers around the country are members of The National Association of Responsible Loan Officers ( NARLO) or MBAA and NAMB and therefore must abide by a higher standard and code of ethics.

Finding an ethical mortgage broker is your key to the right real estate loan. It is important to find a person you’re comfortable working with and you feel you can trust. If there comes a time when you feel pressured by your mortgage broker it may be time to walk away. An ethical mortgage broker will hear your needs and then find a product to meet those needs instead of trying to push you into a loan just to get a commission.