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Sometimes, it’s useful to have a middleman (or woman) to bring the right people together to make deals final. That intermediary – that helpful bridge that can take you, an investor, from point A to point B – can bean invaluable resource for building your real estate portfolio, but do you knowhow to spot the best ones?
Mortgage brokers help borrowers connect with lenders, do the heavy lifting to ensure their client is seeking out the best for their financial situation and business needs. If you’re in a position to seek out an effective broker, these are the signs you should be looking for in a good one.
You send an email outlining your thoughts, goals, and concerns. You wait a day or two, but now it’s the middle of the week and you still haven’t heard back from the broker.
Real estate is already stressful, and things can shift in a moment’s notice. You want someone who can move at a fast pace, be responsive to calls and emails, and give you their honest insight about lenders’ offers. Even without any real progress or an offer available, it’s nice to know that when you touch base with your broker, he or she will be responding in a timely manner.
Run from the ones who don’t.
They don’t skip over the details
You don’t want to work with a broker who pulls a “yadda, yadda yadda,” glossing over the details of loan products, fees, or services.Even if you think you know everything about the lending process, you’ll want a broker who can make it feel less alienating and stress-inducing. Transparency is a key characteristic of any great mortgage broker and it’s the single most important trait that will usher along a positive, long-lasting, and trusted relationship.
No means no
All a broker can do is offer the best options on a table for you to choose from. Ultimately, whatever lending decisions you make should –theoretically – be yours. A good broker won’t push you out of your comfort zone when you’re not ready to, or worse, for their own benefit. They’re meant to actin your best interest, not their own. After all, following the wrong advice and making the wrong business decision can impact you for years to come.
The proof is in the pudding
It all comes back to transparency. If a mortgage broker is being skittish or elusive with information you’re requesting, primarily anything that has to do with their track record, beware! Testimonials from previous clients and a list of credentials are good signs that the broker is not only legitimate, but a good asset to have in your corner. Evidence of success will help put any anxious mind at ease, and you’ll want a broker who is not only forthcoming with their client history, but proud to discuss it with you.
To continue from the last point, a broker’s sole job is to originate mutually beneficial partnerships between you and a lender and having that kind of experience in your corner is invaluable. The level of expertise a broker can harbor stems from a specialization not many people have. Their niche experience and specialization results in their vested interest in your success.
A broker who comes highly recommended by trusted contacts means their reputation precedes them, and much like noted in the last point, they should be forthcoming with their success stories and their approach to handling clients’ needs.
A straight shooter
If a broker is promising you the world and it seems too good to be true – it probably is. A good broker will know to have an honest conversation with you about your business goals and have a pragmatic approach to achieving them. While, yes, they’re keeping your best interests at heart, they also shouldn’t be telling you only the things you want to hear. Find a broker who can be straightforward about your investment and sensible in how it’s tackled.
If you're looking for a loan, or an existing broker looking for a new lending partner, contact Temple View to see how we can help.