Finding a qualified mortgage broker! How to avoid scams!

If you’re interested in purchasing a home, the first thing you must do is get prequalified. Check out a previous blog post entitled “Why should I get pre-approved?” to learn more about why you should get pre-qualified or pre-approved.  One thing not addressed in that article is WHO you should contact to get prequalified!

While you can simply search and find a mortgage broker online, you may want to think twice!  There are some unscrupulous mortgage brokers that will tell you that you qualify for a loan but in fact may not.

Here are some tips to use to find the right mortgage broker:

  • Make sure you contact a reputable company!  You may get prequalified through your bank, credit union or licensed mortgage broker.  If you contact a mortgage broker make sure you research the company and even ask for references.  I recommend that you use one of the more well-known mortgage companies.  This will help minimize the risk of a scam while allowing you to shop around for the best rate.
  • Ask your friends and/or REALTOR to refer you to a mortgage broker.  You friends likely had a great experience with a particular broker. Your REALTOR also has reputable contacts that he/she can refer you to in order to get an accurate idea of if you can get financed AND how much home you can afford.
  • Nowadays banks may approve loans for people with a credit score of 620 or higher. There are VERY FEW cases of loans being approved for a person with a lower score.  When a mortgage broker pulls your score, verify your score to make sure you are at this score or higher.
  • Ask questions! Get a second opinion! If you’re instinct tells you that something may not be right, follow it! Get a second opinion and ask additional questions.  In the age of the Internet you can also do your own research to make sure that you’re getting accurate information.