Most people shop for a mortgage like they shop for a used car — nervous, rushed, and hoping they don't get screwed. That's exactly why you need a broker who actually knows their stuff, not just someone who fills out forms. Here's what to look for before you hand over your financial life.
Licensing & Insurance Questions
Ask for their NMLS number right off the bat. Look it up on the NMLS Consumer Access site yourself. If they hesitate or give you a story, walk. Every state requires a license for a reason. Also ask about errors and omissions insurance. Some brokers skip it to save money. If they don't have it, you're on the hook if they mess up your file. That's not a risk worth taking.
Experience & References Questions
Ask how many loans they closed last year, not how long they've been in the business. Ten years of doing two loans a month is not the same as two years of doing twenty. Then ask for three recent client references — people who closed within the last six months. Call them. Ask if the broker returned calls, if the closing date moved, and if anything surprised them at the last minute. One bad reference is a pattern, not an exception.
Pricing & Timeline Questions
Get a written estimate that shows the interest rate, points, lender fees, and third-party fees. If they won't put it in writing, they're hiding something. Ask how long a typical loan takes from application to closing. If they say thirty days but can't name the last three that closed on time, they're guessing. Also ask what happens if the appraisal comes in low or your credit changes. A good broker has a plan for that.
Contract Questions
Read the broker agreement before you sign. Look for any language that says you owe them a fee even if the loan doesn't close. That's a red flag. Also check if they lock your rate at application or at their discretion. If they control the lock, they control your costs. Ask if the fee is refundable if you cancel within three days. If the answer is no, ask why.
Stop overthinking this — go compare local mortgage brokers on RatingsNearMe and pick the one who answers these questions without getting defensive.