interviewing mortgage brokers in my local area.
Member since 2023 · 13 posts · 4 votes
interviewing mortgage brokers in my local area.
Most Popular Reply
Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes
3yHey Triston,
I am a mortgage broker licensed in CA (as well as other states). Here is what you are looking for plain and simple: You are looking for someone with the heart of a teacher. Are they sharing more information with you, other than the basics of answering your questions? Are they trying to save you money or are they just trying to make you work with them? Do they sound excited on the phone or are they desperate and miserable?
You also need to figure out what you are trying to accomplish because there are too many loans to talk about in a simple 30 minute interview. Are you looking for an investment property or a primary residence? Do you own a business or a W2 employee? Are you a first time buyer or do you own several properties?
There is a lot of info to unpack, but I would start with what you are looking to accomplish and goals, and then choose 2-3 mortgage brokers to speak with about that subject. The conversation will likely branch off into other subjects, but start with your goals/needs.
27 Replies
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3yWell, first you need to state what kind of financing you are looking for. When I was working for a mortgage broker, I only did foreclosure bailouts. I didn't do FHA, VA, Conventional, HELOC, standard Refis or Jumbo loans because I didn't understand them or have sources. I didn't work with investors because I didn't know what their needs were.
Quote from @Triston Blodgett:
I have made a list of my local "good" mortgage brokers. I will be walking in and talking with a few brokers this week. I was wondering if anyone could shoot me some interview questions ? Is there a specific answer to a question that would have you throw a red flag and walk out the building?
Is there a certain way to approach this interview? As I am simply starting a relationship and looking to gain better understanding of mortgage world.
Any and all advice is welcomed! Thank you for your time!
-Triston Blodgett
So start with saying, "Hi, i'm an investor looking for (purchase, bridge, rehab, or whatever) loans for (single family, multifamily, commercial or whatever) can you tell me what LTV you lend to, what the points are, is there a pre-pay and what fees I can expect to pay. What are the sources of documentation you will be needing.
That will get the conversation started.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Do they allow wholesaling?
What are their fees for personal deals?
- Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes3y
Quote from @Triston Blodgett:
@Jason Wray would have great content to provide.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes3y
@Triston Blodgett I am not a big fan of Mortgage Brokers when it comes to investment properties. Better to make a list of local banks. Also, you have to find the right loan officer at each bank - you might be surprised on how the same bank can tell you no way or no problem, depending who you speak with. Local investors and some know who you need to talk to.
Prepare a package with you financials, summary on first page, and what you are looking for. All you pdf's on a memory stick.
- Real Estate Agent · Auburn Hills, MI · Member since 2022 · 45 posts · 67 votes3y
Do they offer investment loans? 12 month or 24 month bank statement loans, debt service coverage ratio. Try to look for investor-friendly lenders that offer an array of products, not just traditional lending.
- Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3y
@Triston Blodgett actually walking in how much time do you have? I would call/email before hand and save everyone some time. Start with refferals and see if you can narrow your list down.
Determine what fits your plan the best. If you are wanting to scale sometimes the cheapest money day one isn't the best option. Relationships help scale.
Best of luck!
I recommend you call and schedule an appointment. You may walk in when they have a demanding file or closing, and their attention should be paid towards their clients that need it the most at that moment.
Next, have your docs ready to go. You do not need to send them prior to the appt, but have them ready.
3rd - let them talk to you. You will notice which ones you think are the best fit. If you find a mortgage broker without anything to say to explain, move on. Whether its loan products, the market, game planning, there is plenty to talk about. You do not need interview questions IMO
- 3yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
Quote from @Chris Davidson:
@Triston Blodgett actually walking in how much time do you have? I would call/email before hand and save everyone some time. Start with refferals and see if you can narrow your list down.
Determine what fits your plan the best. If you are wanting to scale sometimes the cheapest money day one isn't the best option. Relationships help scale.
Best of luck!
That was my first thought.
- 3yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votesWalking in is a bad idea. Most LO's that I know are remote these days.
Quote from @Triston Blodgett:
I have made a list of my local "good" mortgage brokers. I will be walking in and talking with a few brokers this week. I was wondering if anyone could shoot me some interview questions ? Is there a specific answer to a question that would have you throw a red flag and walk out the building?
Is there a certain way to approach this interview? As I am simply starting a relationship and looking to gain better understanding of mortgage world.
Any and all advice is welcomed! Thank you for your time!
-Triston Blodgett
Local isn't necessary unless you're trying to buy a property from a bank owned list and you're going to the bank, but have an appointment and someone specific to see.
Know what you want to do (fix and flip, rehab loans or BRRRR, house hack or just a simple long term hold.
Once you've decided what you want to do, go to some MeetUps and REIA's in your area and start speaking to investors and Realtors. They'll give you an idea of who's good and who's really not great to work with. If they're there, talk to them and if not, give them a call. That's the way to get started I think.
All the best
Stephanie - Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes3y
Hey Triston,
I am a mortgage broker licensed in CA (as well as other states). Here is what you are looking for plain and simple: You are looking for someone with the heart of a teacher. Are they sharing more information with you, other than the basics of answering your questions? Are they trying to save you money or are they just trying to make you work with them? Do they sound excited on the phone or are they desperate and miserable?
You also need to figure out what you are trying to accomplish because there are too many loans to talk about in a simple 30 minute interview. Are you looking for an investment property or a primary residence? Do you own a business or a W2 employee? Are you a first time buyer or do you own several properties?
There is a lot of info to unpack, but I would start with what you are looking to accomplish and goals, and then choose 2-3 mortgage brokers to speak with about that subject. The conversation will likely branch off into other subjects, but start with your goals/needs.
- Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes3y
@Triston Blodgett - I think that you should just pick up the phone and call the people on your list, tell them what you are looking to do, and let them steer the conversation. A good mortgage broker will ask questions about your credit, income/employment, assets, and overall goals, so as to gauge whether or not you will likely qualify for a loan and if so what loan product(s) will best meet your needs. A good idea would be to have them explain how the loan process will flow once you are ready to try and get under contract on a home. Another idea is to have them send you their client reviews - this would be a pretty good indicator of the level of service they provide.
- Member since 2023 · 13 posts · 4 votes3y
WOW! YOU GUYS ARE AMAZING! TO PUT IT IN SIMPLE TERMS! So I do have a plan in mind as im looking to use my VA loan for multi family property. I have low savings and need to do some house hacking. Low savings, I am not able to rehab, so good condition units. Also the VA loan is not rehab friendly. I also wanted to look into the specifics behind a DSCR loan, correct me if im wrong, DSCR loan allows me to use the property income to add to my primary income.
For me, walking in is important. Call me old fashioned but a good handshake and eye contact are everything. In person I can quickly get the feel for people , and decide to further a relationship or not. I feel a personal connection is what I thrive from. But I am here to learn and figure out whats works best! So if phone calls is what I need to do to further my financial freedom, then that is what I will do!
I CANT THANK EVERYONE ENOUGH FOR LENDING THEIR EXPERTISE ! IT IS REALLY APPRECIATED !
- Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3y
@Triston Blodgett I feel you on the old fashion, and being able to look some one in the eye. However in these times things move fast, and a good lender is going to be busy. I would set up a call first and see what kind of vibe you get and follow up with a in person meeting if necessary. But in order to get things done meeting everyone in person is just impossible from the lenders standpoint.
If you are doing SMF you will be able to use the income from the other units on your loan. A DSCR likely won't be a good option right now as you will need funds to close it and looking at a higher down payment than conventional and VA financing.
VA is powerful, find an agent that meshes well with you and they likely will be able to make a few introductions as well and save you some time and get you closer to your goals!
Keep after it!
- Member since 2023 · 13 posts · 4 votes3y
Thank you @Chris Davidson ! I look forward to hearing from you in the future!
- Lender · Nationwide · Member since 2022 · 46 posts · 28 votes3y
You would be better off calling and scheduling an appointment or sending an email. Most brokers that close investment loans have 30 lenders they could take the file to and should know what lender is the best fit for each specific scenario.
I hope this helps.
- 3yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
Quote from @Triston Blodgett:
WOW! YOU GUYS ARE AMAZING! TO PUT IT IN SIMPLE TERMS! So I do have a plan in mind as im looking to use my VA loan for multi family property. I have low savings and need to do some house hacking. Low savings, I am not able to rehab, so good condition units. Also the VA loan is not rehab friendly. I also wanted to look into the specifics behind a DSCR loan, correct me if im wrong, DSCR loan allows me to use the property income to add to my primary income.
For me, walking in is important. Call me old fashioned but a good handshake and eye contact are everything. In person I can quickly get the feel for people , and decide to further a relationship or not. I feel a personal connection is what I thrive from. But I am here to learn and figure out whats works best! So if phone calls is what I need to do to further my financial freedom, then that is what I will do!
I CANT THANK EVERYONE ENOUGH FOR LENDING THEIR EXPERTISE ! IT IS REALLY APPRECIATED !
Love the idea of meeting people, but it's not practical. We've closed hundreds of loans all over the country and never met one borrower in person.
- Lender · Nationwide · Member since 2022 · 46 posts · 28 votes3y
DSCR loans can not be used for primary residence even if the property has several units. They are for investment properties only. Most DSCR lenders require the borrower to own a primary home and sign a business use form stating they wont live in it.
- Lender · Jersey City, NJ · Member since 2020 · 102 posts · 43 votes3y
1. What are your general lending guidelines? Do you have any overlays?
2. Do you finance deals like mine in my area?
3. How many loans like mine have you closed in the last 90 days? FHA, 203k, refi, VA, 2nd mortgage, HELOC, vacation homes?
4. What are your loan products and programs?
5. I have a unique situation (e.g entrepreneurship, bankruptcy), will that be an issues? If so, how can we address it?
6. Do you require cash reserves? If so, how much?
7. What hours do you work? Do you work on weekends?
8. What is your preferred method of communication? (Office number, cell, text, regular email, secured email, in-person)
9. What's today's interest rate? How much is it to lock that rate?
10. Do you own investment properties?
I like to take note of how they respond when I ask questions like these. Are they problem focused or solution oriented? Do they see opportunities within your area or do they use generic responses like "the market is crazy"?
Good luck brother, happy hunting!
- Member since 2023 · 13 posts · 4 votes3y
Quote from @Vanessa Ivonne Hernandez:
1. What are your general lending guidelines? Do you have any overlays?
2. Do you finance deals like mine in my area?
3. How many loans like mine have you closed in the last 90 days? FHA, 203k, refi, VA, 2nd mortgage, HELOC, vacation homes?
4. What are your loan products and programs?
5. I have a unique situation (e.g entrepreneurship, bankruptcy), will that be an issues? If so, how can we address it?
6. Do you require cash reserves? If so, how much?
7. What hours do you work? Do you work on weekends?
8. What is your preferred method of communication? (Office number, cell, text, regular email, secured email, in-person)
9. What's today's interest rate? How much is it to lock that rate?
10. Do you own investment properties?
I like to take note of how they respond when I ask questions like these. Are they problem focused or solution oriented? Do they see opportunities within your area or do they use generic responses like "the market is crazy"?
Good luck brother, happy hunting!
Very helpful! Thank you for reaching out , I appreciate you spending the time to reply!
- 3yJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
Triston,
Since you are going to use your DD-214 & VA certificate of Eligibility with your upcoming VA purchase. I would advise reaching out to a Fully Delegated Bank. The VA Program is great but Brokers and Lenders have "Overlays" which can hurt your options. VA rates are FICO driven so you want to go to a bigger Bank to avoid broker fee's or a lot of Margin built into the rate to pay a loan officer's commission.
You can also avoid having your credit pulled multiple times by allowing one Bank to pull the report. After that you can receive a copy and verbally let any other competitor run a quote based on the current report and score.
- Real Estate Agent · Member since 2018 · 459 posts · 414 votes3y
It depends on what you are wanting to accomplish. Owner occupied loans are going to be different than investment loans and lenders may have better or worse products depending on what you are wanting to accomplish. If you walk in without having a plan or an idea of what you are wanting to do, they will not give you the quality of answers you are expecting.
Have a plan of what you are wanting to accomplish, where it is going to happen, when you want it to happen, and what resources you have to make it happen. This will help them answer your questions, whatever they may be.
I think if you are looking to go the owner-occupied route, talk to a mortgage broker. If you are looking to build a large portfolio going the non-occupied owner route, get connected to a smaller, local credit union. Nowadays though, hardly anyone goes in to sit and talk in person during office hours. Phone calls are best. You can call to schedule a time to meet, but chances are, if they are good, they have their day booked out in advance and you won't get a chance to talk just by walking in.
I'd look into your local REI group and see who they have used and see if that name shows up on your list. Narrow down that list. I'd only work with lenders that either A). Invest in properties themselves, or B) Work extensively with seasoned investors.
Questions you may be asked might be difficult for them to answer because they are subjective to your unique situation. Are you a veteran? Are you a W2 employee or 1099? Do you work a lot of overtime? How much experience do you have? So expect the lender to have questions for you that you need to be prepared to answer as well. Bring your paystubs and W2's or have them handy.
I'd ask previous clients how their experience was with the lenders. Pay attention to what they say. A bad team can ruin a deal, so see who they manage and if they perform well too. If you are looking for a lender, I'd recommend @Grant Schroeder with Academy Mortgage. He's an investor on BP as well.
Hope that helps.
- 3yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Marcus Auerbach:
@Triston Blodgett I am not a big fan of Mortgage Brokers when it comes to investment properties. Better to make a list of local banks. Also, you have to find the right loan officer at each bank - you might be surprised on how the same bank can tell you no way or no problem, depending who you speak with. Local investors and some know who you need to talk to.
Prepare a package with you financials, summary on first page, and what you are looking for. All you pdf's on a memory stick.
This is a recipe for disaster. A lot of the clients I work with come from local banks that failed to perform... And some realtors that I started working with couldn't find someone to get the deal done.. The fact is, a well-qualified mortgage broker will have existing relationships already and will know how to navigate during the underwriting process.
LuxePrivate Investments LLC 570 Reviews - Lender · CA · Member since 2018 · 638 posts · 393 votes3y
Quote from @Marcus Auerbach:
@Triston Blodgett I am not a big fan of Mortgage Brokers when it comes to investment properties. Better to make a list of local banks. Also, you have to find the right loan officer at each bank - you might be surprised on how the same bank can tell you no way or no problem, depending who you speak with. Local investors and some know who you need to talk to.
Prepare a package with you financials, summary on first page, and what you are looking for. All you pdf's on a memory stick.
Curious why you don't like mortgage brokers for those? As a mortgage broker, that is our specialty, we have better programs, more options and better pricing than local banks for DSCR and other investment loans. Gotta find the right mortgage broker...plus we are in almost all 50 states which means we can help with out of state rentals unlike local banks.
- Lender · Member since 2019 · 18 posts · 2 votes3yHey Triston, I hope all is well. I wouldn't say there is a specific answer that is a red flag. It is a red flag when you feel like they aren't being patient with you and not making sure they help you understand the process throughout. If are interested in getting a hard money or commercial loan don't hesitate to reach out also if you have any additional questions.
Quote from @Triston Blodgett:
I have made a list of my local "good" mortgage brokers. I will be walking in and talking with a few brokers this week. I was wondering if anyone could shoot me some interview questions ? Is there a specific answer to a question that would have you throw a red flag and walk out the building?
Is there a certain way to approach this interview? As I am simply starting a relationship and looking to gain better understanding of mortgage world.
Any and all advice is welcomed! Thank you for your time!
-Triston Blodgett
- Lender · Member since 2018 · 617 posts · 275 votes3y
The main red flags are probably:
1) Charging exorbitant up-front fees.
2) Quoting terms that are unrealistic given market conditions.
3) No happy clients.
You want someone who is honest, charges fair prices, who has a good understanding of current market conditions, and who has worked with and had success with borrowers in a similar position to you.
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