Lately, I've written about lawyers and real estate agents. But there is another body that many purchasers deal with: mortgage brokers. So I'm writing to give them the same treatment as lawyers and real estate agents. It's only fair.

Much like I've written about lawyers and real estate agents, the most important factor is that you are able to get along with the one you choose. Each one has special connections with different lenders that can influence the deal you get. This fact is especially important if you don't qualify for financing from a lending institution and instead require assistance from a private lender (i.e. a private individual with money to lend).

Most brokers will help you get the best rate for your situation, based on their assessment of your needs and wishes. Sometimes, you may end up with one that will simply send you to the place that pays the best commission. It's important to ask about options and to see some evidence that they have submitted your file to "better" lenders.

The brokers that I enjoy dealing with are usually very organized; all the forms and instructions are written out clearly and there is usually little trouble in addressing certain needs. Some of the worst that I have dealt with just aren't as well organized and some were flat out dishonest. Here are some examples:

- didn't submit the appraisal until the day of closing
- had a deal in hand from a major bank (considered a good or "A" lender) but kept resubmitting it to sub-prime (or "B") lenders to try to make more commission
- failed to disclose material information to a private lender
- took unreasonable actions to try to preserve his commission that may have prejudiced the lender's rights
- sent me a mortgage commitment telling me to close using that (lawyers need full instructions from the lender, not just a commitment)
- ask me to breach professional ethics (which I flat out refused and told him to never ask me to do again)
- provide advice on a mortgage that was false (he told the borrower that the mortgage was completely open, when in fact there was a prepayment penalty)

Despite these negatives, I still wouldn't recommend that potential purchasers or refinancers shy away from mortgage brokers. Many will still help you with getting the right mortgage for your situation. Brokers can sometimes give even better rates than the bank's posted rate and some lenders will only deal with brokers. However, you should read all the fine print before agreeing to a mortgage. If you are still unsure, you can always ask a lawyer to take a look for you. However, a lawyer can't give you financial advice, so s/he can't advise you if something is a "good deal" or if you are entitled to a different rate. S/he can only give you an idea of what you are getting into and what you can expect.