Many people have rightfully been skeptical of using a mortgage broker in the past to obtain a loan for a purchase or refinance. There are many stories about bait and switch tactics and outright fraud in qualifying borrowers for a loan. (Of course, many bank loan officers were also found to have played the same games!)
Because of recent reforms and other trends, there are now 3 reasons to consider a mortgage broker:
1. Today's Mortgage Broker is nationally educated and certified. As of September 15, 2010, all non-bank loan officers must be nationally tested, licensed, certified and approved to provide lending services. A national database will also allow consumers and regulators to follow the bad actors. Regulators can now more easily revoke the license of the violators. Bank loan officers are not required to do this.
2. Mortgage brokers provide choice in rates and programs. Many are approved to do business with four or more national banks and mortgage companies. They can provide the borrower more choice in loan programs and rates.
3. Most mortgage brokers provide excellent, customized service. They can go directly to you. They do not have to worry about loans getting lost in a huge centralized processing center hundreds of miles away, like many big bank employ.
Like with any service, check out the prospective loan officer on state (and soon, national) licensing authorities, ask for references and make sure you are getting disclosures when you apply. And, check the disclosures and loan application to be sure your personal information is stated correctly and you have applied for the loan, terms and fees you were told.
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