If you have planned to purchase the home of your dreams, you should now look for a good mortgage broker who can find the best loan deal for you. However, it’s not easy to come up with tricky and necessary questions at the spot while inquiring the mortgage broker. You have to prepare in advance so that you can confidently interview the broker. Moreover, apart from the typical questions that you might be aware of such as about loan and fees, there are other details that you need to acknowledge.
There are chances that a broker will tell you a certain price and when the settlement is done, he might disclose some hidden charges. Admittedly, that sounds awful. That is why it is necessary to inquire the broker as thoroughly as possible so that you can have a pleasant experience with them. For avoiding unpleasant and unwanted surprises, here are a few important questions that everyone should ask their mortgage broker.
Ask About Their License
Don’t just assume that the local Kelowna BC mortgage broker you’re going to work with is a licensed one as you’re impressed by their convincing behavior. Ask them openly if they are and ask for proof. If they are unable to provide proof, they are not the right mortgage brokers to work with. Also, ask about their experience as it says a lot about a person. You can even ask for referrals to determine the credibility of the mortgage broker.
Ask About the Most Suitable Loan for You
Don’t just agree on what the agent is suggesting. Ask them what type of loan fits your financial situation best. Just like a bank has a great deal of your personal, professional, and financial information before giving a loan, you have to ask about all the details of the loan from your mortgage broker before borrowing. Never feel afraid of asking such questions as they’ll only exhibit that you have a good knowledge about such things and reduce any possible chances of defrauding. Ask them the pros and cons related to different loans such as negative amortization, adjustable-rate, fixed-rate, and interest-only loans.
Ask About the Interest and Annual Percentage Rate
Ask them directly about interest rate and annual percentage rate and how they are calculated. If your loan plan has an adjustable interest rate, do ask about the frequency of adjustment, highest rate, maximum annual adjustment, margin, index, and other relevant questions.
Ask About All the Costs in Detail
Inquire about the total cost that will be incurred throughout the period. It is important to be clear about everything at the start rather than filing a case for fraud at the settlement stage. You have to ask about all the hidden charges clearly; you don’t want unexpected surprises at the end. Ask about the charges regarding the appraisal, credit report, recording fees, paperwork fees, taxes, fees for services, and all the other costs that can occur.