4 Questions to ask your mortgage broker
When it comes to buying real estate, finding the perfect property is foremost, but securing the right finance is nearly as important.
Doing so means working with the right mortgage broker, but how do you know who'll get you the best deal? With so many people vying for your business, choosing can be hard – but these four questions can help you determine if a broker is suited to your needs.
Why did you decide to become a mortgage broker?
This question might seem a bit simple, but a broker's answer can tell you volumes about what he or she values. Look for brokers who want to help, look after customers and teach people about home finance. These are the types of professionals who will be most dedicated to finding the best loan for you.
What sort of training and experience do you have?
This question can give you a good idea of what a broker can do that you couldn't on your own. Anyone can walk into a bank to deal with lenders directly, but working with a broker puts the leveraging in an expert's hands.
This is only true, however, if your broker is an experienced negotiator and a market expert. Determine this by asking him or her about his career path. Ask questions such as:
- Do you have any licenses or certifications?
- How long have you been working in this industry?
- What's an instance you've been most proud of?
- Do you own much property yourself?
All of this can give you a comprehensive picture of how well a broker will be able to deliver with a great loan.
Which lenders do you have access to?
When you work with a mortgage broker, you'll have access to their lender panel, so be sure to find out who's on it first. If he or she doesn't work with many lenders, look elsewhere.
You'll also want to assess the quality of the lenders on the panel. A good broker will have access to a wide variety of loans and lenders.
How do you decide which loans to present to me?
One of the benefits of working with a broker is that they can go to this large lender panel and come back to you with a few of the most suitable loans. No one wants to see fifty loans – they want the broker to negotiate on their behalf and find the best.
By asking your broker how they narrow down the right loans, you'll figure out if your values are aligned and if he or she understands your financial situation as well as your goals.
You'll also want to ask more detailed questions about the loans themselves – things like, 'is there a prepayment penalty?' and 'what are the associated costs?' All of this, however, will come after you've chosen to work with a broker.
At Direct Mortgages, our team is highly experienced and dedicated to finding you the best property finance option. We're glad to answer any questions you might have, so feel free to reach out or drop into one of our offices today.