How To Know Your Home Loan Broker Is Legit: 5 Steps

How To Know Your Home Loan Broker Is Legit: 5 Steps

-------------------------------------

So, your new home loan broker sounds like he or she knows what they are talking about, but how much do you know about them?

Recommendations from friends and relatives can be good, but not all home loan brokers are capable of doing the heavy lifting needed for all types of lending.

The advice and tips given by the broker can have you tied to a 15 or even a 30 year home loan and so it is important to take a substantial amount of time in researching your broker’s qualifications. This will save you from making some serious financial mistakes.

1. Licenses and Education

A qualified broker for home loans will have a resume that shows all college-level classes in mortgage and real estate practices. In this case, a home loan broker with masters in the real estate-related field is the most suitable.

Special certifications in brokerage areas ideally show legitimacy. A resume that shows years of successful lending experience is also one of the signals of a legit and qualified broker.

Also, a legit home loan broker should have an active state license and at least one or two professional business organization membership. If the broker you intend to work with cannot produce a current and valid license issued by your country, simply walk away.

2. Recommendations

This is another way of landing on a legit home loan broker.

Ask for recommendations from your friends and family members who have previously worked with a mortgage broker. A completed loan that leaves the customer happy is a great recommendation, but you should dig deeper and get to familiarize with the terms of the loan.

If possible, talk with the people who recommend the broker about the details of the loans. Search for mortgages that come in on time during escrow and with the same rates and conditions the buyer looked for when they shopped for the loan.

Good loan terms are what separate good brokers from those who bring in any old loans.

3. Company Affiliations

An independent home loan broker will ideally have a valid license to operate.

If the broker you intend to work with operates in a brokerage office, the company should have a current business license. The business license means that the broker has a bond backing up his or her performance. Ask for the business licenses before jumping on the contract signing process.

A brokerage company will have a company license and therefore you should look for framed wall certificates on the office walls.

4. Complaints and Lawsuits

Do not just assume that your broker is legit because they are doing business. Investigate complaints and pending lawsuits with your local real estate board as well as the business bureaus.

If the broker happens to have several complaints from former clients, it is better to look for a new one.

5. Meeting Lending Laws

Brokers for home loans should meet state laws as well. You should be aware of using loan brokers who promise guaranteed loans, those who collect money upfront before offering any actual services and also those who collect checks made out personally to them instead of a bank or a registered lender. These are all signs that the broker is not legitimate.

-------------------------------------------------------------------------------------------------------------

end of post idea

-------------------------------------------------------------------------------------------------------------

Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

Categories: Loans

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload CAPTCHA.