When searching for your first home or re-financing an existing mortgage, selecting the right lender and broker is critical. Not only will this affect your experience during the buying process, but also determine its financial success.
1. What Types of Loans Do You Offer?
Most brokers work with a wide variety of lenders, so they should be able to offer you plenty of choices that meet your individual requirements. Enquire about the various mortgage programs available, their terms and rates, as well as any special financing solutions that could apply in your situation.
2. What Loan Programs Make the Most Sense For Me?
Asking this question is a wise move, as it allows the broker to determine which loan options best suit your individual circumstances. They’ll need to understand your budget and debt load before recommending an appropriate solution.
3. What Are Your Fees and Charges?
Many mortgages come with an extensive list of fees and charges, so it’s essential that you understand them upfront. Ideally, these should be explained in plain language in the details of your home loan agreement.
4. What Are Escrow Fees?
Escrow is a payment system that involves depositing money into an account to be used on a specific purchase. Usually, this involves depositing the deed to property, though it could also cover home insurance and other related costs.
5. What Are Your Lender Fees?
Your lender is legally required to provide a detailed breakdown of all costs associated with your loan within three business days after submission of an application. This is known as a “loan estimate.” It should include everything from lender fees and title costs, to appraisal fees and other third-party costs.
6. What Are Your Closing Costs?
Your closing costs include your mortgage loan, taxes and insurance, escrow fees, as well as other related costs. Although these can vary, it’s always beneficial to ask your broker to break down these expenses so you understand exactly what you’ll pay before closing.
7. How Long Does it Take to Get Approved for a Mortgage?
Obtaining a mortgage can be complex and time-consuming. Your lender will assess your income, debt-to-income ratio, and credit history before approving or declining your application.
8. How Can You Become Pre-Qualified for a Mortgage?
Becoming pre-qualified for a mortgage is an essential step in the homebuying process, as it allows you to identify properties within your budget and make offers more appealing to potential sellers. Furthermore, being approved for larger mortgage amounts can expedite the purchase process considerably.
9. What Will Be My Monthly Payment?
