“TRUST YOUR GUT INSTINCT”
(Feb. 27, 2020) — Getting yourself prepared for your upcoming purchase of a new home might tip you off to be extra cautious in every transaction you handle and every person you talk to. It is necessary since it is just not your time that is spent during the entire process but especially your hard-earned money.
And working with a mortgage broker is one of the scenarios you need to handle well. Thus you must spot even the minute details that might lead you to the worst situation, like mortgage fraud.
It is already a prevalent case, which is why many first-time home buyers are skeptical about working with one. However, even with all the negativity, there are still advantages when working with a mortgage broker. You just need to watch out for the red flags and stay away from those.
Read through the article to give you an idea of what you should be looking at when working with a prospective mortgage broker.
1. Always rushing.
If your mortgage broker is always rushing you in signing a document, submission of requirements, and other critical parts of the transaction, it is not a good idea at all.
Remember to read every document presented to you before you affix your signature. Always take your time in reading through each entry and ask questions if you are in doubt.
A mortgage broker who is always in a hurry is a red flag you should watch out for. Your mortgage broker should be in a hurry only when it’s sensible, which means they need to maximize their time in running back and forth between their pool of lenders, running things and documents by you, and being time-efficient at the same time.
When you spot this kind of trait in your current mortgage broker, talk to your realtor to see if you can pool out another broker from their selection.
Perthbroker.com.au has a lot of qualified and trusted brokers in their pool that you can choose from. See for yourself and talk to them as they can assist with your house loan.
2.Does not meet lending laws.
Laws are in place for security and protection, but when the law is not followed, it is a significant disadvantage. When working with a mortgage broker, you should look into how your broker handles things. Laws prohibit mortgage brokers from doing the following:
- receiving any form of cash directly
- collection of up-front money before they render their services
- promising guaranteed loans in advance.
If a mortgage broker does any of the things mentioned above, it’s already a red flag. Stay away from him or her and cut off all transactions and communications with them. Start seeking out other mortgage brokers instead.
3. Encouraging you to lie in your loan application.
Lying is already wrong, a mistake we commonly make which is forgivable at times. However, lying in the name of the law is a grave mistake, can cause you a lot of trouble and is also punishable by the law that mandates it.
When your mortgage broker advises you to lie on your application, that’s a real red flag, and you should watch out. Unethical behavior should not be displayed by your mortgage broker.
This situation happens because there are mortgage brokers who don’t consider what is best for you. They are just in it for the commission they will be getting. That is why they are pushing things with you and pressuring you to lie just to close the transaction. Be careful, and don’t be fooled by this.
Not getting approval, for now, might be a good thing rather than pushing things to happen and suffering the consequences afterward because you didn’t have all the resources to maintain the monthly payments on your mortgage. Never lie on your loan application, and if your mortgage broker pressures you, cut them off as soon as possible.
4. No recommendation and credentials.
This is the minimum you should watch out for when working with a mortgage broker – their references. However, it is still essential to look into their association and affiliations with your realtor and local lenders.
If you receive a random email stating that they offer assistance with your housing loan and hail themselves as an accredited mortgage broker, be wary. Please do your research, as they may look so appealing in their online portfolios. A wolf in a sheep’s clothing is very common in the brokerage industry.
If possible, ask your realtor to give you a recommendation about who to work for. These local realtors are already affiliated with trusted mortgage brokers in their past transactions and already work with them successfully.
Working with a mortgage broker is like working with a stranger; you don’t know them on a personal level. That is why it is your responsibility to be cautious and selective when working with one. Do your research and be diligent enough to select from a pool of brokers in your area before finally dealing with one. And if all things fail, remember to trust your gut instinct when it comes to interpersonal relationships.
Sharon Rondeau has operated The Post & Email since April 2010, focusing on the Obama birth certificate investigation and other government corruption news. She has reported prolifically on constitutional violations within Tennessee’s prison and judicial systems.