Finance Globe

U.S. financial and economic topics from several finance writers.
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Is your Mortgage Broker Scamming you?

There will be a lot going through your mind when it comes time to purchase a home. While you spend most of your time searching for the perfect property, there is something else that should be on your mind: obtaining a mortgage.

Once you receive a pre-approval, you will have a clear idea of how much money you can afford to spend on your new home.

Some people communicate directly with multiple mortgage lenders, searching for the company that can provide a competitive interest rate, top of the line service, and many other benefits.

There are also those who realize the benefits of working with a mortgage broker. Despite the benefits of doing so, it is important to remember one thing: some of these “professionals” don’t have your best interest in mind.

Here are a few common mortgage broker scams to be aware of:

1. Telling you that you will never be able to find a good deal on your own. A broker may be able to provide a high level of targeted service, but with the right approach you also have the ability to take on each and every step without help.

2. Pushing you towards one lender, even when it is not best for you. What is the reason for this? Simply put, your broker may get paid more by one lender than another. For this reason, he or she will push you towards that lender, hoping that you follow their advice.

3. Making you sign a document stating that you will not shop around. Most people know better than to sign such a document, but some people, those who are buying a home for the first time, for example, are unsure of what they should and should not be doing. Any broker who requests this is one that is worth leaving in the past.

There are many benefits of working with a mortgage broker, but only if you form a business relationship with a person who is highly qualified and professional. You must be comfortable working with this person, knowing that you are in good hands at all times.
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Thursday, 29 July 2021

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