Important Questions You Should Ask Your Mortgage Broker

Important Questions You Should Ask Your Mortgage Broker

Before buying a real estate property, you need to be approved for a mortgage. And you need a mortgage broker to help you achieve that. 

However, you need to test your mortgage broker and make sure that they’re fit for the job. After all, the wrong person could lead you to make the wrong decisions. Here are some of the most important questions you should ask a mortgage broker.

1. Why shouldn’t I hire a mortgage lender instead?

Mortgage lenders and mortgage brokers have different jobs. A mortgage lender will provide the money, while a mortgage broker will help you find the right lender. They can guide you towards the right lender suitable for your home loan needs.

You need to know how competitive your mortgage lender is. As much as possible, you need them to provide the best services. You need to know their intentions and how diligent they are. You need a mortgage broker that is good at their job and has a lot of connections among lenders. That way, your home loan process will be less painful and stressful—and possibly less expensive.

2. Which kind of home loan suits my situation?

A good mortgage broker should determine which kind of home loan suits your situation best. Ask the mortgage broker to explain the pros and cons of your options—whether it’s a fixed, variable, or split home loan. Your financial stability, work, family background, and more can affect the decision on which home loan you should apply for, and vice versa. You need to choose the right one for you, to know where you can benefit from the most.

3. Are there any prepayment penalties?

In some places, prepayment penalties don’t apply anymore. You need to ask them if the possible lenders you choose from have prepayment penalties. And if there are, ask how much the penalties cost. It is important to get clarifications to prevent payment penalties.

4. How much should I borrow from the lender?

A good mortgage broker considers your current and future financial situation. They should be able to make loan arrangements that suit your needs, rather than just rashly suggesting to borrow the highest loan possible. Asking how much you should borrow and asking how much you can borrow are two different things. Your mortgage broker must know if you can pay all the loans and handle the possible inflation of interest rates.

5. Are you a qualified and licensed mortgage broker?

Just like any other job, a mortgage broker needs to be licensed. They should be qualified to take part in this process. You need to check their credentials and see if they are permitted to do the job. If you’re doubtful and sceptical, you can check your home broker’s registry on ASIC.

Summary

When choosing a mortgage broker, it would be a good decision to choose the right one. It’s better to be safe than sorry. Having your own house is probably one of the biggest financial investments, so be careful and don’t be afraid to ask questions.

Here at FinanceCorp, we make sure to give all of our clients the best home loan options to suit their needs. You don’t have to worry about hiring the right mortgage broker because all the Finance Managers at FinanceCorp are fully qualified, trained, and experienced. We live and breathe finance. Contact us today!