Mortgage Broker Check List 

·        Get a detailed description in writing of the exact programs 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 good-faith estimate the details all of the loan costs 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.  Be sure to review the “Yield Premium Spread” at the bottom of the good faith estimate.  Is it in line with your question about how much your lenders intends to make on the loan?  Example…If your broker says he intends to make a point on the front end and a half point on the back end the good faith should have ONE POINT origination fee and the yield premium spread should be 0.5%.

·        Rate locks from a broker can be costly 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.

·        The FTC's online brochure, Looking for the Best Mortgage is a great resource for comparison shopping and provides some basic information to help in negotiating with mortgage brokers or lenders.

Lastly, 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.  Another great thing is to find a broker who is predictable on their service, fees and most importantly can close your loan on or before the scheduled closing date.  A good real estate agent has a decent arms length relationship with a quality mortgage broker.