5 Questions to Compare Mortgage Brokers
August 10, 2017 | Posted by: Richard Allatt
Ready to get the best mortgage rate? Even if you gather quotes from various mortgage brokers online, be sure to check with your local mortgage brokers. In addition to being able to build a personal relationship, working with a local mortgage broker is most convenient for handling the paperwork involved.
Whether you are a first time home buyer, looking to refinance, or seeking a vacation home, use the following list of questions to help you find the best mortgage broker:
1. What’s the rate? This is obviously among the most important questions you can ask as it will directly affect how much your mortgage will cost you.
2. Can I lock that rate down? How much will it cost? If you’re worried that your amazing rate might disappear before you close, you have the option of locking the current rate down for a fee. Ask your lender what they charge.
3. How much do I have to put down? Many loans require a 20% down payment. The lender will need to know how much of a down payment you plan on making to determine the right loan options for you.
4. Can I get a preapproval letter? Your mortgage lender can determine the loan amount they would give you based on an extensive review of your credit history. They can also issue a pre-approval letter to strengthen your position when bidding on a home. This can help put a seller at ease because they know you can access the cash needed to buy the property.
5. Is there a prepayment penalty? There's no reason to get a mortgage with a prepayment penalty. If the lender is offering a loan with a penalty for paying it off early, they are probably not the lender for you. The chances of anyone staying in a home and not refinancing at some point over the next 30 years are highly unlikely.
Remember, the cost of your mortgage includes not only the interest rate, but also the closing costs, which can be substantial. Typically, you should anticipate closing costs to be in the neighborhood of $1,200 to $1,500, but the closing costs do vary greatly between lenders. Generally, these costs must be paid out of pocket along with your down payment when you close on the mortgage and obtain the deed to your new home.
The help of a qualified Mortgage Broker during this process will be of enormous benefit to you. If you have questions about Ontario debt consolidation, Ontario mortgage refinancing, or Ontario mortgage renewals, contact our team with your questions and let us help you get started.