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Your mortgage
broker "to-do" list
By Michael
D. Larson • Bankrate.com
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Get a description in writing of the exact program being offered.
Because many people who go to brokers are getting specialized mortgages that
may not be as straightforward as 30-year fixed-rate loans, it's especially important
to know what you want and know if that's what you're being offered. That way,
you can compare rates, fees and points on an apples-to-apples basis.
• Make sure you get a detailed good-faith estimate
and check that against your final bill before closing. Brokers are sometimes
paid by both the lenders who underwrite the mortgages and the consumers who
get them, and it's important to look at the documents to make sure the broker
isn't getting paid too much or double-charging you.
• Rate locks from a broker can be a big trip-up if
you're not careful. Get proof in the form of a signed document that the lock
has been executed if that's what you want to do. Keep in mind this usually has
to take place during business hours for the lock to be effective that day. Missed
faxes or other snafus can delay the transaction and leave you with a higher
rate if you're not on top of things.
• Think referral, referral, referral when it's time
to find a broker. It's good to have a broker who's nice; it's better to get
rates and costs that are reasonable.
• Consider checking to see if your broker or mortgage
brokerage has faced state regulatory sanctions in the past. Most states maintain
some kind of list of people and companies who have been fined or had their licenses
revoked.
-- Posted: July 1, 2003
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