Important Questions You Should Ask a Mortgage Broker Before Committing
Choosing a mortgage will, in the majority of cases, be the most significant financial decision a person will make in their lifetime. The mortgage broker you choose will play a vital role in ensuring that you get the best deal available for your situation. That is why you must choose your mortgage broker wisely.
A good broker should make you feel comfortable, never be pushy, and want to educate you so that you are capable of making the final decisions. When choosing a mortgage broker, don’t forget that although this may be their area of expertise, they are supposed to be working for you, so you should have a reasonable expectation that they’re going to be on your side. Below, I have listed some important questions I believe you should ask any mortgage broker before you commit to taking out a mortgage through them, and potentially even before agreeing to work with them in the first place.
What Type of Loan Is Best for Me?
This is probably the most crucial question to ask, and the response a mortgage broker gives will tell you a great deal.
The mortgage industry has thousands of different options available to potential buyers, and not every product is suitable for every buyer. For instance, some people might want to pay off the mortgage as quickly as possible, while others may prefer an interest-only loan. So if you ask a broker this question, the correct response should be to ask you a lot of questions to gain a full understanding of your situation. On the other hand, if a broker immediately starts recommending a specific mortgage type without asking any information, that is a red flag.
You wouldn’t expect a doctor to begin operating on you without conducting an x-ray or other tests. Any good mortgage broker will spend time listening to their clients to gain a proper understanding of your circumstances. They should also take the time to explain all of the different types of mortgage, such as a fixed-rate, variable-rate, and negative amortization loans. Only upon understanding the options available can a consumer make a sound decision about the type of loan which is best for them.
Is It Possible To Get A Loan Rate Lock?
Buying a home can be a long, drawn-out process, and during the time of arranging the purchase, there is a possibility that interest rates could change. In some cases, there is an option to protect yourself from these changes by securing a loan rate lock.
This is usually a good option if you feel that interest rates are likely to increase (your broker should be able to provide guidance in this area, as well). Lenders typically charge zero to one point to lock in a loan rate. Find out how long the lock will last and how much it will cost you. This will help to avoid any nasty shocks when the mortgage is completed.
Is There Any Penalty For Prepayment?
Life can change rapidly, and sometimes as a consequence of a job promotion or perhaps being left money as part of a will, you might be in a situation where you can pay off your mortgage early. This is referred to as a prepayment, and can save you thousands.
In some states, lenders can still penalize borrowers by charging up to six months of extra interest for paying off the mortgage early. Although you may have no intention of paying off your mortgage early, it is essential that you know about the details of prepayment in case your circumstances do change and you want to take advantage of this option.
These are just some of the questions you could and should ask your mortgage broker. However, there is no such thing as a stupid question – it is far better to ask than to keep quiet. Whatever worries, concerns, or questions you have, you should always be comfortable enough to ask your mortgage broker. If you do not feel comfortable to ask them, that probably tells you that they are not the right broker for you – and there are other choices out there!
If you have any questions about the mortgage application process or would like to book a consultation, click here to schedule an appointment.
Comments Off on Important Questions You Should Ask a Mortgage Broker Before CommittingSearch
Recent Posts
Archives
Categories
- Address:
750 NE Burnside Gresham, Oregon 97030 - Call Us:
503-201-9620 - Email us:
rachelmoorecsmb@gmail.com - Follow us on:
Facebook
We provide unparalleled customer service, and go above and beyond to ensure that our customers get the best possible loans.
We offer many added value services including, after hours credit approval letters, mobile signings, help with improving your credit, and a trusted advisory role for all of our clients.
Central Source Mortgage Banking Inc.
Corporate Licenses
