10 Questions to Ask Your Mortgage Broker

When trying to find a mortgage broker that’s right for you it’s important you ask them a number of questions candidly before you agree to work with them so to both claw out their core motivations and get an idea for how getting a mortgage from them will work to ensure you’re not left out of pocket. These questions are, in no particular order:

1) Are You Completely Independent?

This is an important first question to ask a broker, as though some like to advertise themselves as being fully independent, some still have backhanded deals with particular lenders. When looking for reputable mortgage brokers to help land you a mortgage, you’ll want to make sure you’re working with a fully independent broker. You’re cutting your options short if you choose to work with anybody else.

2) What Are Your Qualifications?

Questions such as these can be difficult to ask as you don’t want to come across as rude, but when you think about it; this is your future at stake, so ask the question, and make sure your broker gives you a full and complete answer you’re happy with.

3) What Will You Do for Me that I Couldn’t Do Myself?

No doubt you’ve been thinking this, so why not ask it? There are many factors involved in getting approved for a mortgage, but how many of these do you think could you do by yourself?

4) Will You Charge Me for Advice?

This questions leads directly into the next question. If your broker doesn’t charge for advice this may seem like a wonderful thing. However, if they’re not charging you, they have to get their income from somewhere, which leads us onto…

5) What Commissions Will You Earn from Particular Companies?

Related to question one, it’s fine for your broker to receive commissions from certain lenders if you take up a mortgage from them, so long as they’ll receive the exact same amount from each lender, and no lenders are omitted.

6) Are You Tied to Only Recommend Specific Mortgages?

Simply put, you do not want to work with a mortgage broker who’s tied to only recommend specific mortgages. Unfortunately, in many cases the broker’s interests may not align fully with yours, meaning there’s a chance they may not recommend the perfect mortgage for you, to you, due to them not receiving any commission for doing so.

7) How Long is My Rate Fixed For?

Make sure you get a very specific answer out of them (a date), as this is an important point you’re going to have to keep in mind if you move forward with your loan application.

8) Does My Mortgage Come With a Pre-Payment Penalty?

Pre-payment penalties are common with sub-prime loans, and they occur when you refinance your home within a given period of time. Though these penalty fees are by no means ideal, they’re not something to lose sleep over.

9) How Long Will My Pre-Approval Last?

When you’re pre-approved for a mortgage you’ll have a certain amount of time in which to sort everything out and apply. Make sure you ask your broker how long this period is, so you’re not caught short.

10) Are You Going to Sell My Information?

No doubt you’ll catch your broker off-guard with this question, as they never expect to have to answer it. The truth is, some brokers will sell your contact information on to others, therefore it’s always a good idea to get their assurance that they won’t in your case.

In conclusion, when trying to find a mortgage broker that’s right for you it’s important you ask them a number of questions candidly before you agree to work with them so to ensure you’re not left out of pocket.

About the Author:

Operating through a network of more than 300 advisers, Smartline is one of Australia’s leading home loan and mortgage broker group. Find out more about Smartline mortgage brokers on their site.

 

Tags: Loan, Mortgage broker, Mortgage loan, Pre-approval

Category: Mortgage