In order to buy a home, you may need a mortgage, and the process of obtaining one can sometimes feel overwhelming. Working with a reputable broker is a must as this will ensure you are well informed and make the right decisions. 

Before settling on a mortgage broker, you need to ask them some fundamental questions, including the following:

• What is your fee?

Depending on the type of lender you are placed with, Mortgage brokers may charge a fee for their services, and you need to know this amount in advance, so there are no surprises. It is common for broker fees to be charged for B-lenders and private lenders.

• What type of loan do you recommend?

There are different loan options you will be able to consider, and a mortgage broker must provide you with expert advice regarding the loan that would be best for you and your situation. Their knowledge and experience should be able to point you in the right direction.

• What is my budget? 

You cannot start looking at properties until you have this information; otherwise, you will be wasting your time. You will have to share your financial information with the mortgage broker before viewing properties so that they can determine your budget and how much you can afford.

• What does the mortgage approval process look like? 

The application process will come after the broker has gone through your financials, and after you have been pre-qualified. Once your offer has been accepted, your mortgage broker will then guide you through the following steps.

• Can you lock in a loan rate? 

Locking in your loan for future purposes is highly recommended because this will protect you from higher interest rates. It is also imperative to know how long the rate can be locked in. 

• What are the costs included in a mortgage? 

Lender fees, recording fees, credit reports, taxes, third-party vendor fees, and title policy and appraisals are all fees that a mortgage loan may carry, so you need to ask for an accurate estimate regarding your loan. 

• How can I save on interest? 

Making a sizeable down payment will lower your mortgage and may help you obtain a better rate. An experienced mortgage broker will also discuss the other options available to help you save on interest. 

• What are closing costs? 

Closing costs include development charges, land transfer taxes, title insurance, legal fees, etc. Although a real estate lawyer would provide the final number, it is crucial to get an idea from your mortgage broker of how much this could cost. A good rule of thumb is 1.5% of the purchase price should be allocated towards closing costs.  

• Can I pay off my loan early? 

You may face a prepayment penalty if you decide to pay off your loan early, and this fee can be very costly, so you need to ask about it in advance. 

• How long will my loan process take? 

Your mortgage broker should be able to provide you with an accurate answer regarding how much time the loan process will take. You will have to submit all of your essential financial information like bank statements and pay stubs, and every client is different, so you may encounter a few obstacles that can hold up the process. This answer will vary for every client, although they should be able to provide you with a solution based on your specific circumstances. 

When it comes to your mortgage, you need to work with a professional broker, and you can always rely on the experts at Grover Mortgage Group for help. We will provide honest information and guide you through buying your dream home. If you are looking for a mortgage broker in Oakville, contact us today!