Are You Asking Your Mortgage Associate the Right Questions?

Your home will likely be the single largest purchase you make and will be a part of your life for the next 25+ years. Decisions you make now could affect you for years to come, which is why it is imperative that you know what to look for in a mortgage associate and understand the process that goes through with applying for a mortgage. Don’t be afraid to ask questions. The more you get to know your mortgage associate beforehand, the better.

Ask your friends and family for recommendations.

If they own a home, your friends and family members have been through the very same process. Make sure you ask the opinion of someone you consider a reliable source.

Do your own research over the Internet and by phone.

Don’t just trust the recommendations of your family and friends. Ask questions about deals and conditions, and don’t be afraid to compare mortgages rates offered by different providers. Do your homework.

Take notes.

The notes you take will come in handy when making your final decision. Take notes that include names, dates, and offer details.

QUESTIONS TO ASK YOUR MORTGAGE ASSOCIATE

How long have you been in business?

Although there’s nothing wrong with working with someone who’s new to the business, you will probably want to work with someone who has some experience under the belt. Does this associate have an office? Is it buzzing with business, or is it quiet and conservative?

What kind of education or licensing do you have?

All mortgage associates in Canada require a license in order to practice. Some are members of associations, while others work from private practices.

What do you base your recommendations on?

Remember that your mortgage associate works for the lender. It is their responsibility to deliver good, credit-worthy borrowers, like you. If they recommend a certain lender for you, ask why. You want to be sure that they’re making recommendations for the right reasons by choosing a lender and rate that will fit your file.

Make sure to Review your Mortgage Commitment from the Lender

If your mortgage associate has promised you a specific rate, review your Lender's Mortgage Commitment to ensure the discussed rate is locked in.

Are you affiliated with any mortgage associations?

Membership to some mortgage associations can sometimes be indicative of the associate’s oath to offer the best loan options available, regardless of commission. Membership to some associations requires additional education and examinations. Also, those mortgage associates who do belong to professional organizations may also be listed in a directory.

Can you provide me with references?

Even though your mortgage associate will most likely come armed with testimonials from past clients, there is no way of determining how old those testimonials are. Instead ask them for the names of Realtors with whom they’ve worked.

How often will we be in contact?

Although this might seem like an unimportant question, it could be the difference between a painful experience and a smooth transaction. Lenders might ask for several documents at different times during the process. Whether they need proof on down payment resources, letters from employers or identification, your mortgage associate will notify you once the lender has asked for certain documents so you can provide them.

The combination of thorough research and proper inquiry should help you narrow down your pool of potential loan providers. Trust your gut and only make your selection if you are fully comfortable with it.

For our most recent Rate Updates, visit www.yourmortgagenow.ca or subscribe to our monthly Newsletter

Good Luck! Call us today if you have any questions : (306) 244-7755