Before committing to a mortgage broker, it’s important that you ask him/her a set of questions to know whether s/he is someone you should trust. Listed below are the top 7 things you should ask –
1. Total time taken to process the application
The entire process may take anywhere from 4 to 12 weeks to complete. A professional who has undergone a formal mortgage broker course can reduce the total time by ensuring quick appraisal of the property. S/he can also speed up verification of credit history, bank account details and other financial information.
2. Loan qualification criteria
Always ask a mortgage broker to explain the qualification criteria of a loan scheme s/he is recommending. People who’ve just obtained a license to sell loan packages without undergoing any mortgage broker training are often unaware of the basic qualifying guidelines related to your personal credit history, financial liabilities, income etc.
3. The best loan for you
Let a mortgage broker know about your specific requirements and ask him/her to recommend a loan scheme. Also, ask him/her to explain the reason why a particular loan is right for you. If someone tries to suggest something without accessing the situation – move on!
4. Ask about the Interest Rate and APR of a loan scheme
While anyone can tell you about interest rates and other major details of a mortgage, only a few professionals, especially who’ve undergone rigorous mortgage broker training can compare packages in terms of APR or Annual Percentage Rate.
5. Good Faith Estimate
Not many buyers are aware of the fact that mortgages often come with additional fees. An experienced or well trained broker should always provide you with a Good Faith Estimate that explains various ‘extra costs’ that you might have to bear when closing a deal.
6. How do you get paid?
Do not hesitate to ask this question right on the first day you met a mortgage broker. The work or ethics of a true professional are never clouded by the amount of commission you offer. While some experienced professionals may charge a bit extra, it’s important that you do not base your decision on the fee charged by a mortgage broker.
7. Are you formally trained for this job?
Find out if a mortgage broker has undergone a formal mortgage broker course or s/he is just an insurance agent or financial consultant trying to make some extra bucks by selling good-bad-ugly mortgages to not-so-smart customers.
There is no point of dealing with a broker who happens to be certified but has undergone no formal training as s/he wouldn’t be aware of a number of technicalities involved in the mortgage industry. Moreover, s/he would be more interested in short-term gains instead of helping you choose the best mortgage so that you could come back and hire him again few years later.