This question was posted on another forum:
I'm new to dealing with brokers as most of my deals have been done via a bank directly. However I do have a speciality loan so I contacted some brokers from the Enricher. One of the brokers I spoke with said they could help me and would send me a "short information form" (didn't call it a credit app.) No problem. I don't mind information forms or credit applications. So I get the application and before I give this company my SS# etc. I want to find out more about them. I talk to them this morning and after asking them general questions like are they sure they can help, how many loans they have done, how long in business etc. they get mad and tell me they don't want to work with me.
O.K. Is this a red flag, over sensitive broker or am I asking to many questions during my due diligence?
Your take would be appreciated.
Here is my response:
A lender should be able to run a scenario without pulling your credit assuming you know a good amount about your credit profile. If you don't then it will be best have them review "the short form" which is just a mini application. You are doing the right thing. Don't give your personal information to anyone you are not 100% confident. The thing is... they may not be able to help you fully or give you a solid commitment for a loan until they review this application and potentially review more information from you. It's easy to pull someone's credit, but that's not what you are paying them to do. You are paying them to use their expertise and advise you in a financing capacity. Its possible the person you were dealing with couldn't provide you that service and experience or simply didn't know the answers to your questions. If they get mad because you asked how many loans they have closed or how long they have been in business then I'd find out why this question bothers them, but this is definitely a red flag and you should proceed with caution. That doesn't mean you shouldn't use them... it means you should get yourself comfortable before proceeding. Additionally, you have to remember that many brokers and loan officers are coming off a pretty good run with the refinance boom and the investor market looking for loans. During this feast of business many of them have become "order takers" and "salesman". The salesman's job is to advise you and help you whether or not they actually get paid something in return. The "order taker" can't help you if you asked to many questions or are not ready to buy at that moment.
You ARE asking the right questions. You should be asking for recommendations or testimonials. Lenders can't make everyone happy, BUT they should strive to make a heck of a lot more people happy as compared to the few disgruntled.
Questions. Questions. Questions. Ask them. I heard someone say "the only dumb question is the one you don't ask." I think this sounds right. It's your money. At the end of the day it will be you at the title company with the responsibility, accountability, and liability... no one else.
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