3 Top Questions to Ask Your Mortgage Broker

Mortgage Financing Broker

A reputable mortgage broker should be the first person to call once you think about applying for a mortgage. If you do not have one in mind, then consider checking the reviews of a few mortgage brokers to help make up your mind.

The broker will usually ask you questions, so they know how to assist you best. On your part, ask them these questions so you can make the right decisions regarding the mortgage.

Which loan is ideal?

Before your broker gives you the loan options on offer, they will seek to understand you better. Once they have adequate information about you, they’ll then suggest what loan option fits you best.

Feel free to ask them about the best mortgage rate here in Salt Lake City, advantages, and disadvantages of fixed-rate loans, interest-only loans, adjustable rate loans and negative amortization rates. Then make a decision based on what you feel works for you.

What are the total costs?

Besides the down payment, you’ll be required to pay additional costs to get the mortgage. These fees go to the lender and third-party vendors. The total estimate of these charges is called the loan estimate and includes appraisal fees, credit report, taxes, pest inspection reports, and escrow where applicable.

The law requires your mortgage lender to provide you with that information.

Do you charge a prepayment penalty?

While some states don’t allow prepayment penalties, there are still those that do, and you need to ask. If there’s a prepayment penalty, then your lender will typically collect six months of unearned interest to allow you to pay off your loan early.

Find out the total amount of this interest, as well as any other terms of prepayment.

Working with a credible mortgage broker can help make your path towards home ownership a lot smoother. By asking the right questions of the broker, you can make the right decisions from the outset.