Ten Questions to Ask a Mortgage Broker
It's best to get referrals on several qualified mortgage brokers in your community. Once you start talking about loan options, be sure you get answers to these ten questions before you agree to work with one:
1. What loan would best suit me based on my current needs?
2. What's the interest rate and the annual percentage rate of the loan you're suggesting?
3. What are the origination fee and the points associated with this loan, and can you express the amounts in cash instead of as a percentage?
4. List all the potential costs of the loan.
5. Will the lender you choose guarantee the good faith estimate of charges on this loan?
6. What is your lock-in procedure for rates?
7. Is there a prepayment penalty for this loan?
8. Who handles the approval process on these particular loan choices?
9. How long is your typical loan-processing period right now?
10. Are you getting a commission from the lender you choose for me, and how much is it?
Ask these questions politely; you're not there to give someone the third degree. But it is particularly important that the broker respond to these questions because you need to know how much he is really making and what his capabilities are.