Buying a home can be a joyful experience, as long as everything goes as planned (for the most part, at least). One of the most important things you can do is turn your immediate attention to finding the right lender for your situation.
While you’re free to shop for a mortgage lender and loan on your own, it often makes sense to consult with a broker. By doing this, there’s less stress on you to manage the search process. Instead, your broker does all the work for you.
Best yet, you don’t have to pay a mortgage broker for their service. Instead, they make money when they connect you with a lender in their network.
Tip: not all mortgage brokers will have your best interests in mind, so make sure you put enough time into the research process.
There’s no shortage of questions for your mortgage broker, but here are some of the most important:
- Can you explain the fees and payment for the home I want to purchase? The answer to this question will help you set your budget. And when you do that, you can decide once and for all if you’re considering a home you can afford.
- Which types of mortgages do you offer? Which type do you suggest? Even if you have a clear idea of the type of mortgage that you want, don’t just assume it’s best for you. You should still learn more about other options to ensure that you make a sound decision.
- What are the credit qualifications? Some mortgage lenders can help almost every homebuyer, even if they have poor credit or no credit. Depending on your credit situation, this may be a very important question to address.
- What are the closing costs? This plays a big part in your budget, so make sure you discuss this with your broker upfront. If the closing costs are too high, it could affect your ability to afford the home.
- Can you share references with me? In addition to reading online reviews, ask each broker you speak with to share a handful of references. It’s not a “must” but this will help put your mind at ease as you move through the process.
These are some of the best questions you can ask a mortgage broker, but you shouldn’t necessarily stop here. It’s okay to ask any other questions that are on your mind. This is a big purchase — maybe the biggest purchase you’ll ever make — so you want to be comfortable with every step that you take.