Obvious Signs Of A Bad Mortgage Broker

There is no shortage of bad mortgage brokers out there and they come in all shapes and sizes with various personalities.

I thought with all the “specialized” ways of selection, it could be helpful to return to basics and discuss some of the obvious (and often forgotten) hallmarks of bad mortgage brokers.

Talks, Talks, Talks…Never Listens

One of the best ways to judge a mortgage broker is to weigh just how much they listen versus how much they talk. This is the hallmark of a bad mortgage broker and one which could actually be hiding something more sinister. Never ending chatter signals a mortgage broker that is either incompetent or unscrupulous…or both. Be careful.

Misses Deadlines

Punctuality is a necessity in the mortgage business and someone who misses deadlines can cost you dearly. A clear demonstration of a bad mortgage broker is when he says he will call at 6 pm and they don’t. Even one infraction should show your the error of working with such a liability.

Lacks Product Knowledge

A professional mortgage broker can list off mortgages and programs by heart knowing the qualifying requirements. It’s a very bad sign if they need to talk to underwriting or reference the guidelines every time you have a question.

A good way to tell if your mortgage broker is good is to ask a few obscure but perfectly knowable aspects of the loan you are considering to witness their actions.

Questions like “What is the maximum seller contribution on this program?”.

Pretty simple questions any seasoned mortgage professional should have the answer to off the top of his head

In the Mortgage Advantage, a cornerstone of our mortgage broker selection system is over 15 specialized interview questions which quickly eliminate most mortgage brokers from consideration based on ethics, product knowledge, and the pricing of their services.

But I just wanted to remind folks a little common sense goes a long way too.

Good Luck!

Author: Rob K. Blake
Published June 8, 2008