Ask a... mortgage broker

Why do buyers need a mortgage broker?

Calling us is like calling many banks at once. We have discounts with a lot of them, and we know which banks are offering the best rates. We’ll get the best deal for our clients. And if a bank turns down a loan, we can immediately go to another one.

How can people be sure that their broker is on the up and up?

Ask people you know, either friends or even your lawyer, if they’ve ever heard of the broker. And make sure you get everything in writing. Within three days of applying for a loan, you’re required to receive a Good Faith Estimate, a summary of charges you may incur. Double-check this with your broker to make sure there aren’t any hidden costs or fees in there. What will ruin your chance of getting a mortgage? Bad credit or failing to pay your bills on time. Just recently we had someone who was applying for a second mortgage, but they paid their last mortgage payment more than 30 days late. That really threw a wrench into things because a lot of banks won’t lend to people who have missed a mortgage payment within the last 12 months.

What if your credit is strong, but the building’s finances are questionable? Could that prove problematic in trying to get a mortgage?

The building’s financials are really important. Banks will want to know if the building is in good financial shape, and whether or not the owners are behind on any debts. They also like to see that the majority of the apartments are owner-occupied rather then rented out—people are less likely to default on their primary residence. And finally, most banks limit the number of loans they’ll lend per building. Usually it’s around 25 percent of the units. They don’t want to have too much money tied up there if the building goes under.

So is this a good time to buy, or should people hold off?

If you’re buying in a good area, it’s always a good time. — Michelle Hainer

Trachtman & Bach, 260 Fifth Ave between 28th and 29th Sts (212-448-0100, tbmortgage.com).

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