When you approach the market for new mortgage then there is a lot to consider besides the interest rates. First determine, if you desire to approach lenders directly or need a mortgage broker. Finding right mortgage is challenging with more than 4,000 products available in the market. The products cover help to buy option, tracker deals, fixed-rate deals, and offset mortgages.
Even if you determine the kind of mortgage that is suitable, there is a need to look for the best rates that is daunting. Mortgage with low rates have high arrangement fees, so they are uncompetitive for people who need modest loan amount. For some people using a mortgage broker is an easy way out from the maze.
Mortgage broker plays the role of a middle-man between you and the lender. He is capable to recommend mortgage deals available across the market. Mortgage brokers, who are good listeners make sure that they get familiar with your needs and then suggest appropriate mortgage products. They calculate rate and fee combinations to find, which works best for your required needs.
Banks are very strict about their lending approval but a Vancouver mortgage broker is aware of which lenders are likely to approve in specific circumstances. You need to choose a broker that explains the advantages and disadvantages of the variety of loan products, calculate interest rates & annual percentage rate precisely, etc. To find the best broker amongst the mass, you must have a face to face communication and ask appropriate questions.
Top questions to ask potential mortgage broker
What is your experience?
You can establish what broker can help you with. Even if the broker with little experience works for a reputed organization don’t compromise, as a seasoned agent has more experience that can be applied in your scenario.
Are you licensed?
Several mortgage agents carry credit licenses, which means their activities are performed according to National Credit Codes. Many of them are employees of someone carrying a license. Stay away from those who don’t have their own licenses or are not represented by someone who has.
How will you choose the right kind of mortgage?
It allows to get an idea of the broker’s process. If possible, the broker will first try to get familiar with your needs and situation. Avoid brokers, who pressurize you to choose a product, you are not interested in. actually, such brokers are interested in their commission instead of suggesting an appropriate product.
What is your brokerage fee?
Some brokers charge flat fee, while a few accept loan value percentage. Several brokers work only for commissions they receive from the lenders.
What other fees are needed to be paid?
There are additional fees like loan arrangement fees, solicitor’s charges, stamp duty costs, etc. The broker needs to be transparent about each fee details, you will experience during the loan process.
How many lenders are you associated with?
Associating with few lenders indicate you have limited scope to find mortgage that suits your needs. On the other hand, broker working with several specialty and prominent lenders indicate you get great options.
With this list of questions, you are now ready to start your search for an ideal mortgage broker.