Hiring a mortgage broker feels like picking a dentist — you do it because you have to, and you hope they don't screw up your teeth. A bad broker can cost you thousands or blow a closing. Here's what actually matters when you're vetting one.
Licensing & Insurance Questions
Ask for their license number and look it up on the Nationwide Multistate Licensing System (NMLS). Every state has a public database. If they can't rattle off their NMLS ID without checking a sticky note, that's a red flag. Also ask if they carry errors and omissions insurance. Most do, but some fly under the radar. If they screw up your paperwork, that policy is the only thing standing between you and a lawsuit. Don't skip this.
Experience & References Questions
Ask how many loans they closed last year. The number matters more than years in the business. A broker who did 10 deals isn't the same as one who did 100. Get two references from the past six months — not friends or family, actual borrowers. Call them. Ask if the closing happened on time. Ask if any surprise fees showed up. People tell the truth when you ask about money.
Pricing & Timeline Questions
Ask for a detailed Loan Estimate. They have to give you one within three days of a complete application, but a good broker will give you a rough breakdown upfront. Compare the origination fee, points, and third-party costs. Ask about the expected timeline. A standard purchase can close in 30 to 45 days. If they promise 21 days without a concrete plan, they're either lying or overconfident. Ask what happens if it slips.
Contract Questions
Read the broker agreement before you sign. Look for a clause about switching lenders. Some brokers lock you in and charge a fee if you want to jump ship. Ask if they charge an application fee that's nonrefundable. Some do, and it's usually wasted money if you don't proceed. Also check if they require you to use their preferred title company or appraiser — that can limit your leverage.
Go compare local mortgage brokers on RatingsNearMe before you commit to anyone.