There are many reasons for mortgage applicants to use a mortgage broker, from saving money to helping them find the right mortgage agreement for their specific circumstances. In this guide, we will look in detail at the services offered by mortgage broker Seattle and the many benefits of choosing to work with a broker.
1. Talk To Others Who Have Done It Before
If you know someone who recently went into the home loan hunting process with a broker, you can ask them about their experience. Ask them what they would do differently if they had the opportunity to do it again, and now ask them what are some of the things they would like in their next broker. After all, it is cheap to learn from the mistakes of others.
If they have a positive experience, you may want to consider approaching their broker for chat.
2. Don’t Just Talk To A Broker
Choosing a broker and taking the first step may feel like a strain, but it is often not enough to make a decision. When you feel good about the initial chat, chatting with more than one broker is never a bad idea. It gives you some options to compare services and makes other brokers back if the first one doesn’t work. It does not hurt to ask for more than one professional opinion.
3. Ask How They Will Respond
When the broker answers your questions make sure you are actually asking. Each of your home loan options should be explained to you so that you can understand the reasons why these are recommended to you. A good broker should be patient when clarifying your options – avoid brokers who try to use high pressure selling tactics on you or sell loans that do not suit your situation.
If a broker is unable or unresponsive to basic questions about fees, commissions, owner structures and partnerships, this could be a red flag. A good broker should always be open about their business and services.
4. Do Your Research On Home Loan Options
Before you approach anyone, if you do not already have that knowledge, it is a good idea to know the various mortgage options. From fixed rate loans to best mortgage rates, the world of home loans comes with its own terms and conditions. Although brokers can be used to explain things to borrowers, it is worth your time to study in advance so you will have the right knowledge when the broker starts their spiral.
Once you have done your homework on what is on the market, you may want to decide which options you prefer considering your own circumstances. For example, you may want an offset account if you know you will retain a small savings even after disabling the deposit.
5. Ask Questions
It is important that the broker does not allow everything to be said. Get ready with many questions, especially for the first meeting. For any loan option offered by a broker, it is a good idea to ask them why they recommended this to you, as well as what it will cost you.
So, don’t be afraid to grill them, just make sure you choose the option of your choice. Remember, you’ll be responsible for the loan for the next 30 years. Consider posing the following questions to your broker:
- Whose business is yours? Do you own any major banks/lenders?
- What kind of vocational training, qualifications, and professional experience do you have as a broker?
- How do you determine the loans you have recommended for me? / Why did you advise me to take out these loans?
- How do you scan the market and how many lenders are in your lender group? Who are they?
- What kind of commissions do you get, by whom? Will you charge extra for your service?
- Will you send me the clawback fee if I refinance later?