What Questions Should I Ask My Mortgage Broker?

Buying a home is an exciting milestone in life, yet it can be intimidating without the right guidance. Mortgage brokers can assist you through the loan process and find one that meets your requirements. They will also explain what to expect from your lender so that you make informed decisions about your loan package.

What types of loans do you provide?
Mortgage options range from conventional to government-backed ones. Some brokers specialize in finding loans for those with bad credit–like recent bankruptcies and foreclosures–or those looking to refinance their existing homes.

Are You a Licensed Mortgage Broker?
Before selecting any mortgage broker, make sure they’re licensed and insured. Doing this safeguards you and your family in case of an accident or injury that could have been avoided if there were no safeguards in place.

Ask questions about their past clients and whether they were satisfied with the service provided. Doing this can give you a good indication of the broker’s overall quality and professionalism.

Do You Work with Lenders You Know and Trust?
Mortgage brokers typically collaborate with a network of preferred lenders, making the mortgage process simpler by eliminating time spent searching around. But some mortgage brokers don’t work with any lenders at all, so it is essential to ask if they can suggest lenders that meet your criteria.

How is Your Broker Paid?
Brokers make their income through various methods, such as commissions from lenders and referral fees. The fee structure they use may influence which lenders they recommend to you and may lead you away from the most suitable option for your needs.

If a mortgage broker is receiving compensation from lenders for each loan they refer, this could be cause for alarm. It’s an opportunity for them to take advantage of you and could result in higher long-term mortgage payments than what you would have paid otherwise.

How would you rate your mortgage broker?
Rates from mortgage brokers are an important factor when making your decision, so make sure to get quotes from several. Doing this allows for better comparison between rates and fees associated with getting a loan.

Does Your Mortgage Broker Have a Good Track Record?
A broker’s track record is an indication of their ability to find you the best mortgage deals. This could include how quickly they process your application, how promptly they reply back to you and any experience they have with particular lenders.

Does Your Mortgage Broker Have Specialized Training?
A knowledgeable mortgage broker should possess a background in finance and be able to provide guidance on saving for a down payment and other financial strategies. Doing this helps you avoid overspending and guarantees you receive the best mortgage deal available.

Are You Offering a Wide Range of Mortgage Products?
When shopping for a mortgage broker, ensure they offer various loan products like fixed-rate, adjustable rate and interest-only mortgages. This gives you more choices and may even enable you to find the best rate based on your current financial circumstances.