The research for the perfect mortgage broker is a tiring job. The number of brokers is more than ever, and the rising ownership costs have made them mandatory. Not everyone can approach a vendor and tackle all the steps required for taking a mortgage. The jargons and all those financial numbers are not for everyone.
That’s when a broker enters the scene and makes the process easier. Having a trustworthy broker is essential. You can consider half of your mortgage battle won with his correct advice and suggestions. So to help you choose the right person, here are five questions that you should ask before choosing a mortgage broker –
Do You Have a Licence, and What’s Your Experience?
It all starts with the introductory interview. You should understand and know the person with whom you are dealing with. Dealing with the right person from the start will make the process easy to bear.
Start by knowing these basic points-
- His certifications and registrations
- He is working on a one-to-one basis or with a group.
- His or his team’s experience
- Means of Communication
- Banks he is dealing with
- His personality and confidence
What’s the Application Process?
You should understand the process of the application. What steps will there be? Is there any online platform, or is everything paper-based? How long will it take? What documents are needed?
Having these basic questions out of the way will help you know how long it will take before everything gets settled down.
What’s the Interest Rate?
This is the meaty question. What’s the interest rate you can get? An experienced broker will help you get the best mortgage rates in the industry. He should come up with multiple options and tell you the ins and outs of it. But before asking this question, you should have concrete knowledge of your credit conditions.
You should also know that you should never hide any info or details from the broker. The clearer the parties, the better deal you’ll be offered. You should give him a pass if he fails to make a convincing offer.
What’s Your Payment?
This is not a common question, but you should ask it anyway. How is he going to get paid? Is the charging a commission, a full fee, or both? While most mortgage brokers don’t charge their clients, some do, so you should ask the broker at the start so you’re clear about all the costs involved.
You should also know if there is any commission involved or not. This may help you determine whether or not there is a conflict of interest at play.
Is There a Prepayment Penalty?
The best way to save you from debt is not to have it. If you can, prepaying the loan is always the best route. But most lenders won’t like it, and they impose a penalty. Ask your broker to help you understand the prepayment process and preferably get a lender with easier conditions.
