? How long have you been in business?

? How will you get paid?

? Do you have good references?

? How do you handle rate locks?

Let's take a closer look at these, shall we?

How long have you been in business?

You want and deserve a hassle-free loan process, and a good way to guarantee this is to ensure that your mortgage broker has been around the block a few times. Not only do you want your loan to go through without a hitch, you deserve great results and even better service. If your mortgage broker has been doing refinance loans for awhile, he has a leg up on the competition. That way, if there are any surprises you can rest assured that you'll be in good hands.

How will you get paid?

It's always a great idea to find out how your mortgage broker is going to get paid. As much as you'd like to think he wants to help you because of your rosy disposition, without some cash from somewhere he probably won't be able to do much for you. Some brokers will generate cash in one of two ways: fees or yield spread premiums. Fees are usually paid by you and yield spread premiums are paid by... you.

Here's how that works: pretend for a second that you qualify for a loan with a 6% interest rate. Instead, your lender puts you in a 7 1/2 percent loan. He keeps the difference, you pay it, everybody's happy - right?

You have good references?

Ask your mortgage broker for the names and telephone numbers of the last three refinance mortgage loans he's pushed through. If you can try to get recent names, you can give them a call to see if they were happy with the service your broker provided. It's always nice to check with others your mortgage broker has worked with to ensure that calls are returned, promises are kept, and that your broker is as golden as you think he is.

How do you handle rate locks?

Ask your mortgage broker for a loan commitment letter because it could be golden to you. That letter spells out exactly what interest rate you're facing with your refinance home loan. Here's a general example of what you could expect to find in a commitment letter.

By getting it in writing you eliminate any confusion over your interest rate right before closing. In addition, once in awhile a mortgage broker will try to squeeze a few extra dollars out of a loan by gambling with your rate lock.

If it's not locked, and interest rates drop before closing he can wait to lock your rate until they go down. However, if he gambles and loses you would wind up paying the difference. A loan commitment letter keeps your broker on the straight and narrow and keeps your refinance loan on track at the interest rate you're expecting.