NEWS UPDATE: Federal Government Raises Insured Mortgage Cap to $1.5M, Expands 30-year Amortizations
What Should You Ask Your Mortgage Broker?
Looking for a new home is not easy. Getting the money for it is even harder. The process to getting that money is long; and difficult. That’s why most first-time homebuyers need a bit of help to find their new space. A real estate agent can help with the easier part; and that’s where we come in!
Mortgage brokers gather information on the borrower’s current income and decide all the loan details; where to get the loan, the interest rate, payback terms, down payment, and much more. These brokers research and connect with a variety of different financial institutions in order to find the right option for their clients. The best analogy is a personal loan shopper, going store-to-store finding the best, most affordable options.
When you finally get to your first meeting with your broker, there are many things you can ask them! Don’t be shy and get all the information you possibly can! It’s a big deal financially and emotionally, and you want to be fully prepared to buy a new home.
- Which lender will be the best fit for my financial situation?
- What kind of interest rate do I qualify for?
- How big should my down payment be?
- What extra costs are there?
- Will my closing by on time?
Why are the above questions important? As a mortgage broker, I would be able to provide you information about appraisal fees, taxes and a home inspection. I would be using all my network of lenders to see which one is the most suitable for you, depending on your current financial situation.
The interest rate is absolutely crucial – it can literally make or break the type of loan you get. The lower the rate, the better it will be because the loan is easier to pay back; otherwise, at a high rate, it can get expensive and stressful.
The first big commitment to buying a house is putting a down payment. The percentage is usually 20, but can be lower depending on the rate you get. This payment already covers a portion of the house price!
If you choose to go with another broker, make sure they can guarantee an on-time closing for your mortgage, especially if you are under a strict timeline. If your lender is unable to close your mortgage on time you may need to deal with extra expenses, such as rescheduling movers and finding another place to live while you wait for your big move. Not fun!
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