It is truly difficult to get a mortgage these days. The entire market is simply awful to deal with and the experience could not be rougher (sorry to all of my clients whom have been through a really large ringer). To make matters worse, potential mortgage borrowers are still at the mercy of others when getting a mortgage. Whether you are dealing with a bank or a broker, you still have to know a few things. I thought of five quick matters of importance to pass on this Monday morning.  Read below and don’t be afraid to ask for what you need to know!

1.    They just started in the business or with a new company and have no idea what they are doing

The mortgage business used to be for career hoppers and gamblers, but it really did take a lot of knowledge and experience to be good at it. Now, the government has highly regulated the industry by creating a licensing system, education requirements and making it quite expensive to earn a living. So, if your loan officer is fresh out of school, they might not have the industry know-how to get you the best loan. Further, if they just started with a new company, ask them why- it might be their forth one in a year.

2.    They really have no idea if they will be able to get you a loan given your situation

Although there are simple guidelines and product matrixes to go by, each loan scenario is a special case. The loan officer is your guide to your loan, and you want them to understand your particular scenario and needs. This is why you should speak to several loan officers before you decide where to go, especially if your situation has unusual requirements. It is not all about the lowest rate, but getting the best service. You need to assume you are getting the lowest rate, but never assume they can get you a loan. You need someone that has the experience and understanding. If it does not feel right, trust me it’s not.

3.    They told you your rate was locked in but they were really gambling that rates would go down and they can make a higher commission

Yeah, Yeah…..the lowest rates in forty years. True, but they do go up and down- sometimes several times in a day. The rates fluctuate and so does the commission that your mortgage loan officer can make. Remember, the bank pays them for the loan based on the rate-and the higher your interest rate, the more money they can make. If they quote you X rate on Monday, and the rates go down on Tuesday, that same rate will make them more money. So, if they say they are locking you in on Monday, get it in writing. Further, a lock in must include the rate, terms, loan amount and lock period in writing and be signed/dated by the borrower and the lender. Get a copy the same day.

4.    There company is being investigated by the state Banking Department

Mortgage lenders, brokers and banks are being investigated daily by the state and Fed. In fact, more banks have been shut down so far in 2010 then have been closed in 2009. So check and make sure the bank will be around at least until your loan closes.  If you have concerns, call the state banking department and see if there are any pending investigations. Also, you can check this web site for industry rumors: www.ml-implode.com . Remember, there is always a little truth to gossip.

5.    They are not actually licensed in your state

New rules say a mortgage company and the mortgage loan officer must be licensed in each state they are doing business in and the requirements are strict. If they do not hold a license, they cannot do your loan there. Check with the state’s banking department or check this site to see if your loan officer is clear www.nmlsconsumeraccess.org . It helps to know.

Remember, with all the finger pointing, it is now important for the consumer to also do their own due diligence and get involved in their own loan process. If it falls apart, maybe the borrower is really more to blame than someone else! Get smart and be aware of what is going on with your mortgage!