Finding The Right Mortgage Broker For Your Business
By JD Esajian on May 24, 2019
Every real estate investor should have a reliable mortgage broker on their team. Even if you currently financing your deals cash, or with hard money, you never know when the need for a broker will arise. It may not happen on the financing side, but there are times when you will consider pulling out equity or adding a second mortgage. The right mortgage broker will not only help find the best product for your business but will also preapprove and close any potential buyers on your projects.
With the mortgage landscape changing literally every day, it is essential to have a mortgage broker to keep you updated and current. It is not a stretch to say that the right mortgage broker can open your eyes to programs you would have never previously thought of and completely change your business. Here are five tips on finding the right mortgage broker.
- Use Personal Contacts: Whether you are looking for a plumber, piano coach or mortgage broker it is always smart to utilize your personal contacts. In most cases the people closest to you will be able to recommend someone reliable to work with. It is no secret that the mortgage industry has undergone several changes since the collapse of 2009. While the total volume of brokers has diminished, those who have managed to survive are now licensed and regulated by the local state banking commission. You can be confident that they know what they are doing and will legally do whatever they can to help you. Dip into your personal contacts and ask if anyone you know has recently used a good broker they can recommend. Between your attorney, real estate agent and accountant you can bet they will have a handful of options for you.
- Networking Events: When you think about networking events it is most likely met with a deep sigh. Very few people in any business actually like networking, but it is the lifeline of your business. Where else can you meet 10, 20, 50 or even hundreds of like-minded professionals all under the same roof? At your next event you should specifically look for a mortgage broker. You will certainly see a handful of attorneys and hard money lenders, but mortgage brokers will often stand out. The number of brokers going to real estate investment events has taken a steep decline. If you see one at an event you can bet that they have experience and know what they are doing. Ask all the usual questions of how long they have been in the business and what niche programs they have, but more importantly, get a read on their personality. A broker with experience is not nearly as valuable as one who is hungry and answers their phone when it rings. You can usually get a pretty good read on someone simply by talking to them for ten minutes at a networking event.
- Social Media: As we stated, the mortgage business has changed dramatically over the years. At the height of the market, the number of refinances tripled the number of purchases. With interest rates lowering every month there were ample opportunities to refinance. Sure, people bought homes, but refinances were easy money. Today, the exact opposite is true. The number of purchase applications dwarfs that of refinances. You can get a gauge on who you are working with by the number of social media posts you see. Not only the posts from their business page, but if they are willing to advertise or go on specific groups. The more you see a mortgage broker the more likely they have a good business with plenty of different lending options. If you see a mortgage broker a few times in a week online, you should take the next step and reach out to them and set up a meeting.
- Ask The Right Questions: Finding a mortgage broker should be the easy part. With the options mentioned above, and more, there are more than enough ways to get in contact with a broker. From there you need to make sure they are the right fit for you. Asking the right questions will help make your decision. Today, most brokers are similar regarding their fees and costs. You need to know that they have several lending options for investors. The more lenders they work with, the greater chance they can find the right program for you. Next, ask about availability and how they communicate. If you can’t get a question answered when you need it, access to programs won’t make a difference. Treat this like a job interview, until you know you and your broker are on the same page.
- Follow Up: Think about how many times in business you have met someone, things went smoothly and then you never heard from them again. After your meeting you want a mortgage broker that will spend two minutes and follow up with you either through text, email or phone. This is an indicator that they truly want and value your business and are willing to go the extra mile for it. On the flip side, if they don’t have any communication they are either too busy, or too scattered, to place your business trust in.
You may only use a mortgage broker a few times a year, but they are invaluable to our business. The stronger the people on your team around you, the better your team will be. Every real estate investing team should have a mortgage broker.