Finding a good place to live is a real challenge and finding money to pay for it is even more challenging. To ease your life a bit you should definitely find a mortgage broker, so today we will talk about questions to ask a mortgage broker after you found him or her.
Do not be afraid to look foolish, it is absolutely okay to be afraid of such an important thing as buying a house! Ask your mortgage broker about absolutely everything (except his personal life) and be sure that he is your friend who helps you save thousands of dollars.
Who is a mortgage broker and what does he do?
Imagine a realtor, and then multiply his tenacity by 10, knowledge in the financial world by 20, love of working with numbers by 30, and activity by 15 (and do not forget about +5 to intelligence and +7 to agility) – this is how you get a portrait ideal mortgage broker for yourself.
Supplying demands, as it is said. And if there are a lot of offers there will be new demands for those who will search through these offers so the client will save his or her nerves and time. Before going to questions to ask a mortgage broker section let’s talk about the broker’s job. What does a mortgage broker do?
- He finds you a good mortgage for a good interest rate and a nice monthly payment and a larger loan amount.
- He administers the paperwork, handles the loan originator, the loan processor, and the loan originator’s assistant, keeps track of everything on file, gives you all necessary information on this stuff, and provides you with some basic advice in some cases (depending on your questions, of course).
- He keeps track of your application status so that you will always know exactly when your new home will be ready to move in.
- He finds you a mortgage with an attractive up-front fee which you will have to pay after the mortgage has been approved, but which he will earn back before that happens because of the increase in your home’s value.
- He finds you a mortgage with no down payment – or he finds you another way to make sure that there is no down payment from you.
- He finds within your budget something slightly bigger than your budgeted maximum loan amount which is applicable for the whole lifespan of your home, but still not more valuable than your house!
- He is a good negotiator and fights for his client’s interests.
- At last but not least: he is a good friend who does not look for ways to make money off of you but instead consults you and helps you to save thousands of dollars!
Useful Advice about Mortgage Brokers
Finding a mortgage broker is a piece of cake! But before thinking of questions to ask a mortgage broker you should find him first. You should know exactly what you need him for and find the one who suits your needs the best. If you do not want to hire a mortgage broker to save money – well, there are enough other things to spend your money on! Here is some useful advice for you:
- Call at least three or four mortgage brokers and talk with them about how much you can borrow and how much this loan would cost.
- If you have a good credit history, then you should go to an online mortgage broker because other brokers are just too busy to look at your application.
- As soon as possible find out by who exactly you are going to work with – this will be the most important decision! Because there are too many different mortgage brokers, so it is very difficult to make the right choice. It does not matter if this company has any experience or not (if it does not, then do not hire them!) but what matters is how much money your mortgage broker charges for his services.
- The best thing is to ask your mortgage broker how much you can borrow and compare this information with the ones you received from the other mortgage brokers.
- Good mortgage brokers do not work for large banks, they work for themselves and try to find the best deal for their clients.
- If you have a bad credit history, then it is very difficult to find a good mortgage broker who will help you in this situation. You have no choice but to apply at a bank or use a service of a company that specializes in such cases.
- The best option is to find a mortgage broker who works directly with banks because he can help you with everything, whereas other brokers charge for even the smallest services.
Top 5 Questions To Ask a Mortgage Broker
1. How Large Should my Down Payment be?
The amount of the down payment depends on many factors. And a good mortgage broker should consult you on this matter because one of his tasks is to study your financial condition and find the ideal option for you according to it. It is quite logical to think that the more down payment you pay the better mortgage conditions you get, but this is not always so.
2. Is There an Origination Fee?
It is a pity, but regarding the main cost of a house, there are also some additional fees, depending not only on a house but also on your mortgage conditions (like your insurance that can be added to your monthly payments). So be sure to ask your mortgage broker if there is an origination fee, how much does it cost, and if there is a way not to pay it.
3. Which Lender is Best For My Financial Situation?
As it was stated before, your mortgage broker must be tuned to your financial situation and look for lenders that will suit you.
4. Can You Provide Me With a Loan Estimate?
Despite origination fees, there are also a lot more, like credit pull fees or lawyer and notary fees. So your future lender must provide you with a document which is called Loan Estimate and all fees are listed there. Do not forget to talk about it with your mortgage broker or in the end you may find out that your expenses jumped through the roof.
5. Is a Fixed Rate The Best Option For Me?
If you choose to be flexible, your rate can go down, as well as rise very quickly. So, depending on your finances and the situation on the market your mortgage broker should tell you which option is best for you.
Questions To Ask a Mortgage Broker: Conclusion
It is very difficult and you can not say that your mortgage broker will be the best in the world. But if you think about what you can lose when you do not hire a broker, then perhaps he is a much better option! So ask your questions when talking to your mortgage broker. And when you cannot find the answer to something, do not hesitate to call someone who might know better, like a previous client!