Important Questions to ask your Mortgage Broker in Surrey.
There are a variety of ways to get a mortgage loan—you may try approaching your bank directly, use a dedicated mortgage company or online lender, or you may seek out a mortgage broker in Surrey to handle things for you. Mortgage brokers act as liaisons between borrowers and lenders and can save you time and money by finding the right lender for you. Choosing a mortgage broker can be a great choice, but there are some questions that you should be sure to ask them:
Which is the Best Lender for My Financial Situation?
Before locating a lender for you, your mortgage broker will have to do an evaluation of your financial situation. Each borrower is unique and not every lender will be an ideal match. Finding the lender best suited to your financial situation should be a priority for you and your broker.
What Interest Rate Can I Expect?
The overall cost of your borrowing and your ability to manage it will be determined by the interest you are paying. If you qualify for a lower interest rate, it will save you thousands, but a higher rate could make things difficult for you.
What Are the Additional Costs?
Applying for and being approved for a mortgage comes with a variety of costs, so you should ask up front about all the fees you will need to pay. This will give you the information you need to budget properly. Some of the fees you can expect include:
- Appraisal Fees
- Credit Inquiry Fee
- Home Inspection
- Land Transfer Fee
- Lawyer/ Notary Fee
- Title Registration
- Taxes
- Origination Fee
How Much Should My Down Payment Be?
You should always consult with your mortgage broker about the size of the down payment. Many assume that the larger the down payment, the better the mortgage rate, but this isn’t true; a 20% down payment may get you the same mortgage rate as 10% or even 5%. Your mortgage broker will be able to advise you regarding the appropriate amount for your down payment.
Is a Fixed Rate the Best Choice?
Interest rates do fluctuate, so it may be appealing to lock in your loan with a fixed interest rate, particularly if it seems likely that they are to rise soon. This can help you keep your interest rate from increasing during the first term.
Will I Face a Penalty for Prepayment?
When you pay off your mortgage faster than originally agreed, the lender may charge a fee. The reason for this is that when they make the loan, they are anticipating making a certain amount of money in return. By paying off the loan early, they will make less money from the interest and may charge a fee. Be sure to ask how much the fee would be, what the terms of prepayment are, and whether there will be a penalty if the mortgage is refinanced later.
Is There a Guarantee That the closing Will be on Time?
You need to know if your mortgage broker can guarantee the closing of your mortgage will be on time. Not closing on time could lead you to extra expenses such as rescheduling your move date and finding a place to stay while waiting to move.
Your mortgage broker can be of great help when seeking a mortgage but be sure to ask questions and be informed. At Crown Funding Mortgage Broker is a Licensed Mortgage Specialist. We are a mortgage broker in Surrey, BC. Contact us today for more information.