10 Questions to Ask a Mortgage Loan Broker
by: Kevin (Kezz) ROBY
- What assortment of lenders do you as a Mortgage Loan Broker have listed on your financing
Make certain that the individual you are dealing with is a Refinance Mortgage Broker or Mortgage Planner who has access to a variety of lending institutions as opposed to a Mortgage Consultant who only represents one lender and that lender's range of products.
- What's the best type of homeloan that would fit my cashflow cycle and financial structure?
Make sure that the Mortgage Loan Broker or Mortgage Planner demonstrates how the particular type of homeloan will sustain your financialstructure and maximise the use of your cashflow. It is important that the method in which the homeloan repayments are needed to be made doesn't hamper the effective usage of your cashflow in minimising the amount of home loan interest payable.
- Is it advisable to focus on the home loan products with the cheapest home loan interest
If the response is a clear-cut yes, inquire as to why and proceed with caution! There is nothing wrong with low homeloan interest rates supplied the finance provider displays a track record of low interest rates and stable funding! Mortgage products that appear to give a grand deal may contain high penalties, fees and charges, or may not give the flexibility of use that you want in the future. To prevent selecting a loan you could later regret, consider with caution a suggestion centred primarily on cheap interest rates.
- What are the best loan products to suit my direct circumstances and objectives, and how will
they support any future experiences I may have?
Make sure the refinance mortgage brokers recommendation consists of at least 3 mortgage products that experience reasonable comparisons among the products. Beware of a assessment that contains 1 product that appears to be far better to the additional 2! Look for product features and product flexibility that will assist you to tweak the loan product to meet your future ambitions and plans.
- Apart from the payments and charges associated with the new home loan, what extra charges
and fees am I likely to incur?
Finance Institutions, Service Providers and Government Departments often charge costs connected with the lending process and occasionally may be an expensive surprise for the unwary. A worthwhile Refinance Mortgage Broker or Mortgage Planner will furnish you with a Loan Costing Sheet itemising all costs, fees & charges associated with the proposed homeloan procedure.
- How do you get paid and what is your payment arrangement?
Asking for an explanation in writing of how your service provider gets paid for their labor will help identify and reduce conflicts of interest. If the recommended Lender's commission is by far the uppermost payment of all credit providers on the broker's lender panel, proceed with caution as this may well signify a conflict of interest.
- Do you present your customers with a Mortgage Broking Contract?
Not every Refinance Mortgage Brokers service is clear in what it will deliver as compared to what it is that you have need of as an end product. Thus it is highly recommended that a Mortgage Broking Contract be drawn up among the parties outlining the scope of services/products to be provided and commissions connected with the work.
- Do you do FREE Annual Reviews and what extra services do you offer?
Identify how enthusiastic the broker is to remain in touch with you and confirm that your homeloan is meeting with your goals. What further services does the broker give either personally or via referral that might possibly be of benefit to you and are there discount rates offered if you bundle these services with that of the home loan?
- Where might I turn if we have a disagreement that cannot be sorted out?
Do you offer an External Dispute Resolution Service (EDRS)? Ask the service provider to make clear the complaints process offered by their business, outlining who you may complain to and which EDRS they are a associate of? A valuable Refinance Mortgage Broker will present you with a personalised Finance Services Guide at initial meeting which will define all the particulars of their complaints procedure as will their Mortgage Broking Agreement.
- 10. Are you an MFAA certified Mortgage Loan Broker?
By dealing with a broker who is a certified MFAA associate, you are doing business with a broker that has satisfied minimum standards of education, experience and ethics to sustain their association status.
The author invites you to visit: http://www.refinancinggroup.com.au