Top Questions to Ask a Mortgage Broker

Approximately 50% of borrowers obtain their loans with the help of a mortgage broker. Unfortunately, the process of actually obtaining a loan can be confusing and challenging, and many borrowers aren’t sure which questions to ask to be sure they’re getting the best deal possible. Luckily, we’re here to help.

5 Questions to Ask a Mortgage Broker

1.“Can you supply me with your references?”

Just like any other professional, a great mortgage broker should have great references. To ensure that you’re working with a reputable professional, ask to check his or her references. Call the references the broker provides and quiz them about their experience with the broker. Were questions answered respectfully and fully? Was the process smooth or choppy and difficult? Checking your would-be broker’s references can go a long way toward ensuring a good partnership.

2. “Tell me about your experience.”

Good brokers know the market inside and out, and they’ll be able to prove it. If you’re borrowing from a broker, ask about their experience in the market to ensure that you’re on the same page with priorities and approaches to the lending process.

3. “How will you be compensated for this loan?”

Anyone who has ever worked with a car salesman knows that compensation format can have a large impact on the sales experience. It works somewhat the same way with mortgage brokers. Brokers are compensated either through fees or in the form of yield spread premiums. If a broker is compensated according to premiums, they’ll get paid more for signing you up for higher-interest loans. Avoid these brokers at all costs.

4. “What fees will I be paying?”

Get your financial house in order early by asking this critical question. Your broker should be able to tell you all about the one-time fees you’ll be asked to pay at closing.

5. “What guidelines qualify me for this loan?”

Qualification standards are different for every loan and it’s wise to know how and why you’re qualifying for the loan you are. This helps arm you with critical information and ensure you know exactly what you’re getting into with your mortgage payment.

Smart Questions to Ask a Mortgage Broker

When you go into a mortgage broker meeting prepared with smart questions, it’s easier to get the most bang for your buck and ensure that the loan you’re applying for is one you actually want to take out.