If you’re thinking of buying a home, don’t settle for mediocre. Hire the best—and that includes your mortgage broker. In this post, we’ll reveal important questions you must ask your mortgage broker to find out if they are the right one for you. You’d be surprised at how many people don’t ask these questions.
- Do You Have a Fee for Your Services?
It may seem obvious, but not all mortgage brokers charge a fee. If you don’t ask, you could end up confused because you were told one thing, and then when you want to close on your new home, you’re told something different.
A mortgage broker shouldn’t have an upfront fee for their services. They are paid a fee by the lender, not by the borrower. Lenders pay the broker a fee based on the loan amount, and they get a flat fee or commission. So, it’s not the borrower who is paying them, but the lender.
- Can I Get Pre-Approved?
In Canada, you can be pre-approved for a mortgage. “Pre-Approved” means that the broker has verified your financial information and analyzed your financial situation.
A good mortgage broker will advise you if you are qualified for a loan before you spend time looking at homes or before you spend money on land.
- Will I Only Work With You?
A good mortgage broker will spend money on technology so that the borrower and the borrower’s realtor can communicate with them. The broker can then keep everyone updated on any changes and the process.
Look for a broker with an easy-to-use, up-to-date website and ask to see some of their recent work. Don’t settle for a broker who answers all your questions but not the ones you are really asking.
- How Does the Mortgage Approval Process Work?
A good mortgage broker will outline the mortgage approval process for you. This will allow you to plan and make arrangements for the significant expenses to qualify for a mortgage.
A good mortgage broker will also explain the paperwork and give you a timeline. They are on your side and want to make the process as smooth as possible.
- How Can I Save on Interest?
A good mortgage broker will explain ways you can save money on interest.
You can convert your mortgage to a shorter-term when you’re paying off your mortgage and you’ve paid it down to a lower principal. This saves you interest.
- What are the Closing Costs I Should Prepare for?
When you’re buying a home, you know there are closing costs. A good mortgage broker will explain what costs you might expect to pay and when you can start to expect them.
A good mortgage broker will outline your closing costs for you so that you can manage your cash flow.
In a Nutshell
Everyone wants to find a good mortgage broker. If you take the time to ask these questions in an interview, you should be able to find one. A good mortgage broker will be invested in your success and your mortgage.
Mills Financial Group is an Ontario mortgage brokerage, and we are a part of The Mortgage Group. We provide residential and commercial mortgage services. Get in touch with us today.
0 Comments