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.