by Elaine Green

Mortgage broker Steven Lazarus

ou’re buying your first co-op, and you’re probably more than a little nervous. So many variables, so many decisions, and way too many questions. You could do worse than to consult with a mortgage broker, a money man who connects banks and would-be co-op and homeowners.

Talking to mortgage broker Steven Lazarus of ESF Corp. is like sipping a verbal vodka tonic: You can feel yourself relax as he slowly and carefully outlines the particulars of your hopeful purchase. “Before they fall in love with a place and make an offer,” says Lazarus, “people should come and talk to me, so they can feel comfortable with what they’re about to embark on.”

“People shouldn’t have to worry about more than their packing. They’ve got a million things going on. I can take the pressure off.” He offers a seasonal metaphor: “I’m like a catcher, I can handle whatever the pitcher throws.”

Four basic criteria make or break a bank’s decision to lend. First, banks want proof of income – no surprise, given the financial responsibility of ownership.

Second, they want some evidence of assets. If your job were to evaporate one day, banks need assurances that there’s enough cash in reserve to float your loan until you’re back on your financial feet.

Third, they look at your credit report – closely – to see whether you pay bills promptly and regularly, both of which improve your appeal as a borrower.

Finally, they require an objective appraisal of the property you’re considering, to be sure that the price accurately reflects the market.

“The more information you can provide, the lower the risk, and the lower the interest rate the bank would offer,” says Lazarus. But don’t think you can’t get a mortgage with less than a stellar list of assets and income sources. You can go, physically or on line, from bank to bank to research loan criteria interest rates and loan terms. Or you can tap into a broker’s expertise, and ask to be matched with an institution that can best meet your financial needs.

The trick, he explains, is matching buyers with “the most competitive bank who would grant the particular loan. Why not give people something better than they ever expected?”

Prospective buyers would do well, Lazarus says, to check in with brokers even before they’re ready to bid on a place. “Talk with somebody to run the numbers,” he advises. “Don’t be shy, talk things through – weigh your assets and earnings against potential mortgage (and closing) expenses, and monthly maintenance – to see what you might be getting into.” And if you find that dream place, call the broker again, to secure the best possible loan.

Brokers earn the lion’s share of their fees not from borrowers but from banks – a commission is earned when a mortgage is formalized. Lazarus waives the borrower’s nominal application fee until closing. “If they don’t close, they don’t pay,” he explains.

Good word-of-mouth is the currency he prizes. “Trust is critical,” he says. “My reputation is on the line.”

Steven Lazarus, Senior Loan Officer ESF Income Corp. at 866-354-1605 or cell 914-715-1853