A mortgage lender is a person that works for you, between you and the mortgage lenders that you would generally have to go through. They can be a big help when you find yourself lost during the process or if you simply do not have the time to do the legwork because of the speed that your life shoots by.
No matter the reason, there are some common questions you need to ask your mortgage lender.
- What Loan Is Best? – The answer to this question may differ for each individual approaching the mortgage broker. If you are looking to refinance a loan or get a cash-out mortgage loan, you will work with someone different than if you want a first-time home loan. The broker may need a few minutes to find your best options, so be patient while they match you with the best type of loan. They should be able to give you a basic answer, but things may differ once the broker starts looking around for a loan for you.
- Which Lenders Do They Work With? – If you have done any research, you will be familiar with some of the top lenders that can help you. If not, do it before you talk to a broker because you want to know if they work with some of the top lenders or if they have working relationships with some of the bottom ones.
- What Information Do You Need? – Each of the lenders will have slightly different requirements, so you will want to know what the specific lender you may be working through will want. This allows you to get ready for the meeting, which allows you to apply for the loan that is being suggested.
- What Are The Interest Rates? – Interest rates can vary between lenders, and they can go up in down with the market every other day. You will want to have a basic amount that you may be paying for because the better the interest rates are, the better the loan will be that you can get. This is one of the most important questions to ask because if your mortgage broker is trying to get you a high-interest-rate loan, you will want to know why.
- What Are The Fees? – Lenders will always tack on closing fees that you will have to pay out of pocket, along with the down payment amount you have decided to pay. If the fees seem higher than other lenders, you may want to steer the mortgage lender away from them and to the cheaper one. Unless the broker has a good reason to go the other way.
- Can You Lock in The Interest Rate? – Interest rates can skyrocket within a few days, so knowing if you can lock in your rates long enough to get through the closing processes is essential. Some lenders may allow you to do this, while others may not, so you need to determine which direction your lender may be leaning towards.
- How Long Will It Take To Finalize The Loan? – You want to get on to the fun part of claiming your new home and moving in. Asking how long the loan will take should be something you request as soon as you start signing the paperwork.
You may have many other questions you want to ask your mortgage broker, which is fine. The only bad question is the one you did not ask, so let them fly. You must be informed of the process and what it will take to reach the final point. Obtaining the services of a broker may cost you a little more money, but it is worth it in the end because you will have someone knowledgeable about the market and good working relationships with some of the best lenders in the business.