Loans

Questions to Ask a Mortgage Broker

An important first step to take when shopping for a mortgage is to find a qualified mortgage broker. To do that you’ll need to interview several brokers to find out which one best suits your individual needs and circumstances.

1. Ask the mortgage broker about their loan programs and rates, and about the advantages and disadvantages of these loans. The mortgage broker should also ask you about your specific financial situation before discussing loan options with you.
2. Ask the mortgage broker about the cost of your desired loan over the length of the loan. Inquire about the difference between the annual percentage rate and the interest rate, as this will give you a good idea of how much the mortgage broker is charging for the loan.
3. Ask the mortgage broker about any points and origination fees charged for the loan.
4. Ask the mortgage broker about whether you will pay the loan costs upfront, or whether they will be rolled into your loan. Don’t forget that all the fees charged by mortgage brokers are negotiable!
5. Ask the mortgage broker if you can lock in the loan rate. Also, make sure you get the locked-in rate in writing.
6. Ask the mortgage broker about any prepayment penalties on the loan.
7. Ask the mortgage broker about the estimated time frame for closing. Many homeowners need a lender who can close on a loan in a predetermined period of time, so check with the mortgage broker to see if they can accommodate your needs.