Seven Questions to Ask Your Home Loan Broker

Seven Questions to Ask Your Home Loan Broker

Your home loan broker is the expert who can help you get the best rates and terms on your mortgage. As they play a very essential role in house hunting and mortgage search, it makes sense to hire the right man for the task. They will do the legwork for you and help you get the best mortgage rates ever. The brokers should be aware of your current financial situation and carry a review of your income and expenditures.

When you contact a home loan broker, you should know what to expect and what questions to ask him. As a well-informed home buyer, you should be able to take informed decisions and choose the best person for the job.  

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Questions to Ask

How long have you been in the home loan broker business?

This will give you an idea about the expertise and experience of the broker as well as his reputation. You can contact his referrals and read the reviews from his customers and learn about his credentials in the home loan market.

Can I contact your earlier clients?

Even if you do not intend to talk to their previous clients ask this question to simply study their reaction. Be wary of hiring one if they seem comfortable or hesitant about sharing the details with you. A good and legitimate broker should have absolutely no problems in sharing their previous client’s details with you. 

What are your fees?

As home loan brokers earn money in different ways, and may work under different circumstances, expect the home loan broker fee to vary. If the lender pays some fees to the broker for each mortgage, look at that as a red flag as he could be biased towards that lender and it might not be an ideal deal for you.

What are my chances?

Qualifying for a mortgage can be complex, and thus, before you start home buying, get your finances reviewed by the home loan broker, and set realistic expectations. Your finances need to be in order, and the broker can guide you on how you can get a decent mortgage rate.

What are the different mortgages available?

As not all mortgages are created equal, with some having stricter rules and ask for higher payment, you need to ask your home loan broker about the essential information’s. Get a rundown of different possible mortgage loans available in your area.

What about the down payment?

Do ask about the requirements for a down payment. This is essential for those interested in the lowest possible amount as a down payment. Depending on your circumstances, you may want to work with an approved lender and broker. 

Why should I hire you?

Let the home loan broker convince you why you should work with him instead of working directly with a lender. He should make things very clear and state the benefits of working with him or her. There should be no doubt in your mind about what to expect from the broker that you plan to hire

No matter which home loan broker you choose or what kind of loan you go for, it is essential to see where you stand. Get hold of your credit report and improve any credit history before you approach a mortgage lender and broker. Just keep the above-listed questions in mind and ask them the questions, the answers to which will be advantageous for you. Remember that the mortgage brokers and lenders are looking for business, and if you come to them with half-baked knowledge, they can take advantage of the situation. Asking the right questions can lead you to the top home loan broker and the best mortgage rates, and that can make all the difference.