When dealing with a broker, here are seven signs you should watch out for:
- “You need to sign this or your rate will end up going higher”: Intimidation is one of the persuasion techniques of brokers. They love the fact that mortgage rates are volatile and use this fear in getting you to be on board with their high mortgage rate offerings.
- “You need to send your documents back asap.”: While it is essential that your documents need to be sent as soon as possible, it is even more important that you carry out an extensive home loan shopping. A knee-jerk response to every one of your broker’s request may make you leave thousands of dollars on the table. You need tools like parlend.com to carry out a mortgage rate comparison.
- “Take this 30 year fixed when an ARM makes more sense”: Yes, that’s right. Sometimes, ARM makes more sense if you only plan to live in the house for 5 to 7 years. Despite popular belief, brokers make more money selling the 30-year fixed over the ARM. Hence, it is important that you watch out for this one.
- “You really need to get another appraisal done”: When the 1st appraisal comes in short, you aren’t the only one upset, the broker also loses out on potential commissions. However, it is selfish and reckless if the broker recommends you to pay for a second appraisal.
- “The good ole bait and switch”: If there are discrepancies between the rate you were told on the phone and what the initial paperwork shows, it is advisable that you get out while you can. This broker is not the best one for you.
- “Forget the rate lets talk about the payment”: If they are selling you a payment, they are just a car salesman with a new hat. This trick is old, and they often low-ball taxes and insurance in order to trick you with the low monthly payment.
- “I was fishing last week didn’t so and so help you?”: One of the signs of identifying a terrible broker early in the application process is if they do not return calls or emails. You need a broker that is super-responsive during your home loan process regardless of the outcome.
Check out our free mortgage shopping tools at https://www.parlend.com