Making a good investment is all about finding good finance and finding good finance is all about finding a good mortgage broker. So here are 7 things to look for in a mortgage broker.
1) “Not an independent financial adviser”
They’re not specialised in the mortgage market. They sell wills and insurance and all kinds of stuff. And yeah, maybe they are a good IFA, but I’m looking for a specialized broker and that’s very very important to me because it usually means that I can get a much better deal. Now if you’re just sitting in the cubbyhole and your a normal bog-standard person then hey maybe an IFA is okay but for me, a creative investor, I need a specialized mortgage broker.
2) Somebody who invests themselves.
Goes without saying, the more that they know about the marketplace the more deals they’ve done the more proficient they will be and the more help you can get and the probably the better deal you’re going to get yourself from that particular mortgage broker.
3) Specific mortgage deals
Some brokers have done so much business with some finance companies that those finance companies reward them with specific mortgage deals. So it’s always worthwhile shopping around and actually finding out which brokers have which deals. How do you find that out? Networks, internet, ask, talk and the famous “shake hands” where you just go and meet people and ask them questions.
4) Understands creativity
It’s very important to me that my broker understands creativity.
I had no trouble in finding really good deals when I was just starting out. You know there were all over the place and they still are all over the place. The trouble I had was getting to finance… Creative finance to complete the transaction. And so, it’s finally when I found a good mortgage broker that things changed for me and I realized that before finding a deal I should find the finance and then find a deal and structure it to match the finance.
That was the real life “aha moment” for me when things changed for me and I went crazy buying property with the banks money let’s say. So somebody who really understands creativity is very very important because that’s how most deals should be working.
5) Having direct links to underwriters.
Underwriters are the people in the financial institutions who rubber stamp approve or disapprove the mortgage and of course you need to have a mortgage approved pretty much before you sign the application form and that’s your broker’s job. So he has to have those direct links with those people just to double check. Hey if Mr. Jaiswal applies with this this this this this this this will this deal go through? And give a thumbs up thumbs down and then actually we only apply when we know it’s going to go through. This actually is really good because it saves you tons of time and effort and if you’re in a country where they do credit checks every time you apply for a mortgage it’s really going to stop that number of checks being done on your credit file. Really really important.
6) Being honest about commissions.
Sure everyone needs to make money and I’ve no hassle with brokers making money. I’d like them to tell me what they’re making because some brokers like to charge both sides or they get paid from the mortgage company and they want to charge me as their client as well which I love to do because without the deal without the finance… Guess what? I haven’t got any deals. So I’m very happy paying mortgage brokers a fee if they want one. But they have to work hard for it right. They have to give me a really really good deal, otherwise it doesn’t make sense.
7) Making sure they don’t ask you to fabricate evidence.
If any broker asks you to fabricate or lie on a mortgage application form or fabricate evidence. Run a mile. Even though you might be in the middle of a deal and you might be so close and the only way this bank is going to accept it if you just one small little lie on the application form… It’s not worth it. Runner a freakin’ mile. If anyone asks you to do that because in some parts of the world it is actually a criminal offence to lie on an application for a form, and you could be incarcerated. And that would not be much fun. So make sure your brokers are honest but find a good one.
For me, it was all about initially just shaking hands meeting broker after broker after broker and finally found a good one.
I hope you find a good mortgage broker.