What should you look for in a mortgage broker?

My bf %26amp; I are in the market of buying house... we are wanting the broker to do a pre-approval to see how much we could qualify for. What do we look for/what kind of questions should we ask.





(This would be our first home)What should you look for in a mortgage broker?
They are getting tougher and tougher on loans because of all the foreclosures. I would just get it from a bank, and skip the broker.What should you look for in a mortgage broker?
I would go to a large mortgage broker company not a broker right now I don't know if any of them are left anyway. (just kidding) Here is one that the government works with as an example


Express Path - lender working w/FHA (private site)


http://www.expresspath.com/home/landscap鈥?/a>


Best of luck to you
look for someone you think you can trust. ask friends about their past experiences and get a referral. i have been a mortgage broker for 23 years, and everyone needs a good mortgage broker.
Don't pick a mortgage broker, pick a mortgage company. If you have good credit go online to Countrywide.com, you can be preapproved and they will assign a local broker for you. They are the largest in the U.S. and have the best rates and terms. If you don't like that idea, go to your bank and talk to them.





Pre-approval means very little by the way. Until you submit an application they can tell you whatever you want to hear.
Mortgage brokers are in a cut-throat business that is very, very tough right now with low turnover of real estate and a credit crunch because of years of bad loans.





That said; I wouldn't deal with a mortgage broker unless I talked to someone I trust who has dealt with them before. Even then, I would ask for the phone numbers of 5 of their clients and I would call them. Someone reputable will give that up in a heartbeat and I'd walk if they weren't prepared to do it on the spot.





This is the biggest financial decision of your life. I'm all for investing in your primary residence - but don't fall in love or do what's expedient. Treat it like the most important financial transaction you'll ever enter and you'll be ok. Good luck!
Use a reputable bank rather than a mortgage broker. Substantial fees will likely be added by the broker and you risk working with a dishonest broker.





Check your credit report before submitting an application. You are entitled to one free report from each of the three credit bureaus once a year at annualcreditreport.com. Review it carefully and immediately report any errors to the reporting bureau and creditor. The process could take as long as two months but it is the additional cost of higher interest.





Inquire about the interest rate. Your local newspaper may give a comparison between banks and lenders. It is possble they'll push for a higher rated based on any number of criteria: too much credit, not enough credit, too high balances, not enough assets, no revolving credit. While a good score is a good start, there will always be a reason to increase you score above the advertised rate. Push hard for a lower rate or take your business else where.





Pre-approval means little or nothing since the ultimate value and cost of the house will also be factored into your ultimate approval. It helps, though to know how much house you may be able to buy.





Don't allow yourself to become anxious and rush through the loan documents. Read and understand every line before signing and make sure there are no blanks. Verify that all terms match the verbal promises.





You may be able to afford a larger house with an adjustble rate, but you income is less likely to grow a quickly as the interest and you could become a foreclosure statistucs. The same is true of 0% interest loans. At one point, you may find yourself among the many foreclosure tragedies that has swept the country.
I would ask the potential broker some knowledge questions. The more knowledgeable, the better. A) What does FHA mean? %26lt;%26lt;Federal Housing Administration%26gt;%26gt; B)What is a COFI arm? %26lt;%26lt;Cost of Funds Index adjustable rate mortgage%26gt;%26gt; C)What is a typical index for a 1yr T-bill ARM? %26lt;%26lt;2.75%26gt;%26gt; D)how much of your closing costs can be paid by the seller with a 95% conventional conforming loan? %26lt;%26lt;3%%26gt;%26gt; E) What are the debt to income ratios on a conventional conforming mortgage loan? %26lt;%26lt;28/36%26gt;%26gt;





You would take your gross base salaries (or avg 2 years of net income if self employed) times 28% = what house payment you can afford. 36% = total housing and other recurring monthly debt you can afford.


Below is a website from Housing and Urban Developement for buyers to use a worksheet to help you figure out how much you can afford, Also, gives a lot of very good information on the most widely used mortgage loans for first time buyer, FHA. Hope it helps.