5 Questions To Ask Your Mortgage Broker To Make Sure You’re Getting The Best Deals!
There’s a lot that goes into trying to find a mortgage lender, especially the right one for you.
While there are a lot of different options available, your best bet is to work with a reputable lender through a mortgage broker you can trust. Your broker is the key to figuring out the best type of home loan for your situation. It’s their job to guide you through the process, make note of your situation, and point you in the direction of the best type of mortgage for you. But how can you ensure that your mortgage broker is the right person for the job?
For those of you living in the great state of New York, here’s a tip on how to get the best mortgage broker in NY:
Ask questions!
The best way to gauge whether or not a mortgage broker is right for you is to ask them questions. A broker is supposed to be someone knowledgeable, who has the information you need to help you navigate the mortgage process. Asking questions is a great way to get an idea of how much know-how your broker possesses, and how well they answer can tell you how well they’ll be able to guide you through your mortgage.
Here’s a list of questions you can ask:
5 Questions For Your NY Mortgage Broker
1. What Is The Best Type Of Mortgage For Me?
Think of your mortgage as a journey: the destination will always be buying a home, but the road to buying one is different for every person. Depending on your financial situation, you might want to pursue different mortgage options. Your broker is like your travel guide: their job is to make sure you choose the best possible route on the journey to owning your own home. Upon assessing your situation, they should be able to give you a number of potential options that work for you.
A good broker should provide you with a mortgage option that works well with your short-term goals and long-term plans. Make sure to work with a broker who considers your situation and can offer you alternatives.
2. How Much Does My Mortgage Cost?
As per Consumer Financial Protection Bureau rules, a mortgage broker is required to provide you with an itemized list of their fees and the estimated cost of your mortgage loan.
In order to receive an estimate, you, as the borrower, must provide the following information:
- Social Security number
- Income
- Property address
- Appraisal
- Loan amount requested
If you are able to provide more information and paint a clearer portrait of your exact situation, it is advisable to do so. More information will allow a mortgage broker to offer you a more accurate estimate. Once you’ve received your loan estimate, make sure it includes the following details:
- Mortgage interest rate
- Costs of closing
- Taxes
- Insurance
- Estimated monthly payment.
An estimate will allow you to gauge whether or not this loan is best for you. Multiple estimates from different brokers will allow you to compare and decide which loan and which lender to work with. If your estimate is close to breaking the bank, make sure to ask your broker about other available options.
This leads us to our next question.
3. Do I Qualify For Any Down-Payment Assistance Programs?
A good broker should be able to tell you if you qualify for down-payment assistance.
For example, military veterans and first-time home buyers could potentially qualify for certain government-sponsored mortgage programs. Military service members, both retired and active, can apply for a VA loan, which offers a lower interest rate and no down-payment. For those with lower credit scores and limited savings, there is the option to apply for a loan with the Federal Housing Administration.
Your broker should inform you of all the options available for your situation, including your options for loan assistance.
4. What Is The Interest Rate And APR On My Mortgage?
Another important thing to note is the interest rate and annual percentage rate (APR) on your mortgage. It should be included in the estimated cost, but make sure to ask your broker about it.
Your interest rate depends on a number of factors, such as your credit score, the location of your property, the type of mortgage you’ve acquired, and your down-payment. Your mortgage broker should be able to break down these factors in relation to your interest rate.
You should also ask your mortgage broker about your APR, which is determined by your interest rate as well as the fees charged by the lender for your loan. The APR is an insight into the full cost of taking out this loan.
Depending on the type of mortgage you’ve obtained, you should be kept up to date of all the costs and rates involved. Be sure to work with a mortgage broker who can offer you insight into each aspect of your loan.
5. Prequalification Vs. Preapproval: Which Is The Right Choice For Me?
Most people tend to confuse preapproval and prequalification for a mortgage for each other.
If you are prequalified for a mortgage, this means that your lender has asked you questions about income, credit score, assets, and other factors of your financial situation to offer you an estimate of your loan. However, this is only a hypothetical figure depending on the factors you offer your lender.
On the other hand, if you are preapproved for a mortgage, this means that your lender has verified your income, credit score, assets, and other factors of your financial situation by requesting official documents. These documents include your bank statements, tax returns, and W-2s. This allows the lender to give you a verified, accurate figure on your mortgage loan.
It’s important to clarify the difference between both with your broker. You should also ask your mortgage broker which is the right choice for you moving forward.
We hope these questions are able to help you along your journey to find a mortgage lender for you.
If you’re wondering where or how to get the best mortgage broker in NY for you.
Get In Touch With Us For Your Agent Needs!
Procopio Team at Hunt Real Estate is here to help you find a mortgage lender that can work with you and offer you the best possible options for when you purchase your next property.
If you’re interested in this, or are looking to put a property up for sale, we’d love to be of assistance. Contact us at 315-350-0571 to get started.