The Top 5 Essential Questions You Should Ask Your Mortgage Broker
In order to get your hands on a home loan that won’t turn sour after a couple of years, you need to use a trustworthy, skilled mortgage broker. The financial environment is a genuine jungle, and there’s no way for you to make it out of it alone.
Mortgage brokers can and will help you find a mortgage that you are confident is ideal for you, but this shouldn’t serve as a reason for you to just keep quiet and let them do everything.
You want to know who you are working with, so here are a few things you should ask them before going ahead:
- What Fees Do You Charge?
This is pretty much a given, but important nonetheless. The thing is that many brokers these days are paid by the lenders, and don’t charge a fee to their clients. Whenever they bring a client in, they get a commission.
That being said, some mortgage brokers may charge an upfront ‘fee for service’. The answer to this question will allow you to compare brokers and go with the one that offers the most affordable expertise.
- What Mortgage Can I Afford?
Lenders won’t hand out mortgages to people who can’t afford them or would be reduced to eating canned soup; a mortgage broker will weigh in your income and your expenses and then compare the cost of the mortgage with what’s left from your salary at the end of the month.
- Should I Choose a Fixed Rate or Variable Rate Mortgage?
When the rate is fixed, it isn’t subjected to the unpredictable movements of the market; subsequently, it stays the same for the entire duration of the fixed period. When it’s variable, however, it might be affected by all sorts of fluctuations.
This can have some negative implications on your future financial situation, so the professional advice of a mortgage broker is not to be underestimated.
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- How Many Lenders Do You Have?
Each mortgage broker should know more than just a few lenders. The larger the broker’s network, the greater your chances of getting a good deal on your mortgage. A small network could be a sign that the broker hasn’t been in business for that long , or just sticks to a few known lenders.
This doesn’t mean they don’t know what they’re doing, though. Just ask why they stick with only those few lenders as they may have very good reason – or could just be limited by other factors.
- Why Is this Mortgage Better Than the Others?
On one hand, this will show you what makes a loan good and on the other hand, it will teach you how to compare multiple loans more effectively. In the future, it’ll be easier for you to find a mortgage that’s worth it.
Mortgage brokers should be used by all those seeking a new mortgage – or those that what to compare their current mortgage, so they don’t get in deals that prove to be disastrous sooner or later.
Some of them charge fees, others don’t, but one thing is certain – it is a lot better to be guided through the process of getting a mortgage by a professional hand.