Debbie Siegel's Mortgage Minute
Choosing The Right Mortgage Broker
Chances are, before you chose your doctor, you got a few references from co-workers, friends, or family and decided on the person who was right for you. Most likely, you followed a similar process when choosing a sitter for your child. In both cases, you’re looking for a service provider, but deep down, you’re really looking for someone you trust because ultimately, you trust your health to your doctor and your child’s safety to the sitter.
Shouldn't you do the same for your mortgage broker, the person who manages the money you need to make investments in real estate?
Too often, people who are in the market for an investment property – and a mortgage – will simply take the card offered by their real estate agent. The agent may put in a quick "this loan agent is good," but this hardly counts as a reference. Buyers will then call the agent or even the bank cold, putting decisions, responsibility, and profit into the hands of someone they do not even know.
Don't make this mistake. Instead, when you're thinking about the number of bathrooms and kitchen floor plans, think about what type of mortgage broker is right for you. One size may not fit all. Just as you list what you want in an investment property, consider what you want from a broker:
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- Are you a "number cruncher" who knows exactly what you can afford and can figure out a monthly payment lickety split? If so, you may just need a broker who can be a liaison between you and a mortgage company. Find someone who is quick and efficient.
- Do you know what you wish you could afford, but are not quite sure what will work with your budget? A mortgage broker ready to roll up his or her sleeves and look at your budget would be your best choice. Look for someone who is thoughtful, interested in your life, and willing to put in some time.
- Is this your first investment property and the idea of owning a property that isn’t your primary residence make you feel sick to your stomach? You'll likely benefit from a mortgage broker who can hold your hand throughout the process, explain everything to you from escrow to adjustable rates, and ease your jitters.
When looking for a mortgage broker you can trust, talk with friends and family and ask them who they’ve used and if they had a positive or negative experience. Tap the members of your financial team such as your accountant, financial manager, or tax preparer for recommendations, and don’t forget to ask around at your local REIA meeting. Develop a short list of possible brokers (three is probably plenty), then take the time to talk to each person. You may think this is a time consuming process, but remember, you’re opening your private financial books to this person; he or she is worth at least a quick interview.
The three most important components of people's lives are their children, their time, and their money. You choose your child's care very carefully. You work hard to get the most out of your time. Show your money the same respect and think hard about who will broker your mortgage. If you’re investing in real estate over the long haul, you'll want someone you can do business with for years.
Got questions about real estate financing? Contact
Debbie@westchester-mortgage.com
or (617) 965-1236. She'll consider them for
inclusion in a future column. Debbie Siegel is president of Westchester
Mortgage in Newton, Mass. She is licensed in several Northeastern states.
