As a marketing guy I notice the little things that arouse suspicion in advertising and I am keenly aware of the tricks shady mortgage companies use to establish credibility. The biggest red flag is the blatant use of the Better Business Bureau logo and name ads. The more prominent it is in the ad, the bigger your suspicion should be of the advertiser. The fact is, the BBB is a toothless tiger. They blow a lot of hot air and have little effect on how business is conducted today. Businesses that use them are trying to establish a credible reputation based on the outdated preception many people have. If the BBB logo is in every ad or is part of their TV/radio ads...run the other way! The BBB can not help you recover lost fees or payments. All they do is send a letter requesting the business address the issue and have no legal or contractual power to force anyone to do anything.
EVERY mortgage company that I have come in contact with that features the BBB in their advertising has proven to be less than reputable and some are outright criminals! It is better to check with your state's Secretary of State office and the local mortgage banking association. Or you can go the traditional way and work first with your local bank. Rates vary little between banks and mortgage brokers. The advantage brokers offer over banks is often a wider range of mortgage options and companies. But you need to be cautious with fees.
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