24 Jun 5 Questions You Should Be Asking Your Mortgage Broker
Once you’ve selected a mortgage broker that you feel comfortable working with, there are many questions that you might have for them, but here are 5 of the most important:
Considering my financial circumstances, which lender would be best?
It’s part of your mortgage brokers job to thoroughly assess your finances, and you should provide them with all the relevant information so that they can offer you an informed selection of lenders. They will need to determine which lender offers the least degree of risk for your financial circumstances, and once done, you should discuss the brokers recommendations together before selecting what you both believe to be the best loan.
What rate of interest will I qualify for?
Your overall cost of borrowing is dependent upon the interest rate that you qualify for: if you qualify for a lower rate, you could save yourself a lot of money, whereas a higher rate will mean a more expensive loan that might be harder for you to manage.
Are there any extra costs that I should know about?
There are several fees associated with applying for a mortgage, and if your broker hasn’t already pointed these out to you, then you need to make it a priority to ask about them so that you can adjust your budget accordingly. Some ‘extra’ fees include:
- Credit pull fee
- Appraisal fee
- Lawyer and notary fees
- Land transfer fee
- Home inspection
- Recording fees
- Title registration
- Taxes
Is there an estimate of the overall cost of the loan?
Keeping in mind that there can be many extra costs when you’re offered a loan, you should ask your broker if they can provide you with a loan estimate, that should include all costs associated with your application.
What is an appropriate down payment?
If you’re buying a property for the first time, you might assume that the bigger your down payment is, the lower your mortgage rate will be, but this is not the case. You could give a down payment of just 5% and still be given the exact same rate as someone who had put down more than 20%, so it’s important that you ask for your mortgage brokers advice when it comes to making your down payment.
Will I be able to close my mortgage on time?
Lenders who cannot close your mortgage on time, can result in you having to pay extra to cover the costs of rescheduling movers or finding alternative accommodation while you wait to move in. Make sure that your broker can give you the necessary guarantees.
You should feel comfortable asking your mortgage broker all these questions and more, and if you’ve found the right broker for you, they’ll answer them honestly, and as swiftly as they can.