Ten Questions To Ask A Mortgage Broker
Whether you want a mortgage broker to assist you with your first-time home buyer mortgage or refinancing your mortgage to improve cash flow, it’s important to pick a reliable agency with high standards. After all, the end product will determine your financial situation. Therefore, it’s essential to choose a mortgage broker that you can trust to deliver value-based mortgage solutions.
If this is your first time working with a mortgage broker, you may not know where to start when it comes to choosing the right one to help you with the mortgage procedure. To make the whole process easier for you, we’ve outlined ten valuable questions to ask a potential mortgage broker.
During your initial consultation, ask these questions to help you understand if this mortgage broker is the right fit for you, and capable of creating optimal mortgage solutions beneficial to your financial situation.
1. What services do you provide?
It’s essential to ask your mortgage broker about what is included in their services. Will they help you with the entire process, right from pre-approval to completion of the mortgage process? Can they provide refinancing services that’ll help you with your consolidated debt? Work with a broker who provides the services you are looking for.
2. Do you charge a fee?
While some brokers charge a fee, it is very rare we charge a fee as the lenders pay us a referral fee upon completion of the transaction.
3. How many lenders do you work with?
If you work with a mortgage broker who has access to multiple lenders, you’ll be able to choose from several different options. This will enable you to find a mortgage product that best suits your needs.
4. How long does it take to get pre-approved for a mortgage?
Some mortgage agents offer quick pre-approval services, while others take longer. This often depends on the type of mortgage you are looking for and your credit history. It’s best to discuss this with your mortgage broker before hiring them.
5. How long can I lock in my interest rate?
As a mortgage rate lock is an unchanging interest rate, you need to ask your mortgage professionals about how long you can lock in interest rates.
6. If interest rates come down, will I get the lower rate?
After you have locked in a rate, will you be able to access the lower rate in case the interest rate comes down? Or will you be committed to paying the interest rate that you had first locked in? Before enlisting the services of a mortgage broker, discuss this scenario with them.
7. Can I prepay my mortgage? If so, how much can I pay extra per year?
Prepaying a part of your mortgage can relieve you of some stress. However, not all mortgage lenders allow borrowers to prepay. Therefore, it’s best to ask your mortgage broker whether you can prepay and if yes, then how much?
8. What payout penalty should I decide to sell my home before the term is up?
If you want to break your mortgage and sell your home before the mortgage term is up, you’ll have to endure a payout penalty. It’s advisable to ask your mortgage professional about the rate of penalty you’ll have to pay beforehand, which will allow you to make an informed decision.
9. How much will I qualify for?
The mortgage you will qualify for will depend on a number of factors, such as your credit history, finances, income, real estate market, etc. The amount will help you determine your rate of interest, terms of repayment, the property you purchase, etc. Therefore, it’s necessary to ask your mortgage broker about how much you can borrow.
10. What is the best rate you can offer on a renewal?
If you are looking to renew your mortgage, you want to make sure that you get the best rates possible. Ask your mortgage professional about the rates they can offer instead of settling on a higher interest rate.
Are you looking for a mortgage to finance your home or access your home equity? Then reach out to Maria Titarenko at 306-763-3338. My expertise and strategic approach allow me to create optimal mortgage solutions for my clients by assessing their needs and finances. I have access to a host of lending parties that offer innovative products and competitive rates. I can help you save thousands of dollars and take years off your mortgage by helping you make the right mortgage decision.
I offer mortgage pre-approval, mortgage refinancing, mortgage transfers, alternative mortgage lending, self-employed mortgages, and mortgage renewals to clients across Prince Albert, Saskatoon, and the surrounding area.