Questions to Ask your Mortgage Broker
Taking a home loan can be a daunting experience, and one of the most important decisions you will never have to do, so it is crucial to have all the facts at hand when deciding where to get your loan. Despite the solid reputations of big banks, you should seriously consider mortgage products of smaller banks, as the Way of BOQ Clear Home Loan, which can offer rates very competitive interest rates and often beat the big banks hands down.
Regardless of where to go for your home loan, the following five simple questions will help you navigate and simplify the process, any mortgage broker worth his salt should be able to give clear and concise answers.
Do you have references from previous customers?
Whether you are getting renovations done, hiring a new employee, or looking for a nanny, the first thing you want to have are the references of their previous clients. This is a simple question that is often overlooked, but getting a home loan is the decision that changes your life and makes sense to talk to your brokers current or former clients to get the low-down on how well they did their job. If this question is met with evasion or downplayed, it is time to find a different broker.
What is the best interest rate you can get me?
The most important factor any home loan is the interest rate. Having a clear understanding of how interest rates of various loans are structured allows you to compare loans on equal terms to find the one that suits you. Some banks try to attract customers with a special rate, only to be reversed to the standard variable rate after one year or less. Do not be fooled by these offers, ask your mortgage broker to explain how your interest rate could fluctuate throughout the life of the loan and whether a fixed rate or variable rate loan is best for you.
What are all of the fees will I have to pay?
There are a lot of fees associated with obtaining a loan for housing and care must be taken with the fine print and lazy to go through the application process language. Ask your agent to explain how all charges are calculated from the first application for the loan in order to receive the money, and then, for the entire life of the loan. Many banks are offering smart applications of free loans for housing, for example, the Clear Way Home Loan officers casino. Not having to pay an application fee can take the uncertainty of demand for housing loans, as if unsuccessful, or change your mind, you have not committed any money and can move on to consider other options.
Are there any penalties for overpayment or early payment of my loan?
Paying your loan early is the key to saving money and owning your home sooner. If interest rates fall, and you can afford to pay more, you do not want to be penalized right? Ask your agent to explain whether the administration costs are applied to pay more than your monthly payment or if there is a penalty for paying your entire loan early.
What documents do I need to provide and how long will the loan take to be processed?
The provision of the required documentation is essential to make your request proceed quickly and smoothly. Ask your agent for a complete list of documents needed to offer, which usually includes proof of identification and employment, bank statements, proof of assets and liabilities and depending on your situation, a history of credit and tax records. Your agent should be able to give you a clear time line for processing yourapplication once you have provided all necessary documents.Armed with these five simple questions, you should be quickly able to tell if your broker is reliable, professional and able to give clear to help guide you through the application process responses.
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