Ask Your Mortgage Broker These Questions before Committing to a Lender

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Ask Your Mortgage Broker These Questions before
Committing to a Lender
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A large number of the mortgage borrowers hire the
services of a broker to get their loans, and
there is a good reason to do this. One of the
main advantages of using a broker to get the best
deal is the that instead of going through the
first bank that you come across, a broker will
shop around and consider various lenders before
settling on the best option.
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There are various mortgage brokers in the field
but most people feel that they can only trust the
big names. If this applies to you remember that
the best way to ensure that you get the maximum
benefits of hiring a broker, regardless of
whether it is an established firm or a private
practice, is to ask some important questions
before committing.
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Ask For References
Most people hire mortgage broker Brisbane CBD
through references form relatives or friends. In
this case, you are already acquainted with a
person who has experienced the quality of the
brokers service. However, if you select a broker
in any other way, for e.g. if you responded to an
advertisement, or there might be a brokers
office in your local area, be sure to ask for
references.
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Ask for the name and the contact information of
recent customers. You must call up a couple of
them and ask about their experience with the
brokers firm. You may ask questions pertaining
to how they were treated and if the costs were
reasonable.
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How are they compensated?
There are two ways in which most mortgage brokers
are paid direct fees or yield spread premiums.
The fee of the broker is often presented in the
form of points, in which every percent of the
loan equals 1 percent. You might find this listed
on the loan documents as origination fee of the
lender or the brokers commission.
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Be sure to enquire about other costs such as the
funding, application, processing, or document
preparation fee. The yield spread premium is a
controversial method of payment as it might cause
the borrower to end up with a higher interest
percentage.
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What is their policy on rate locks?
There are daily changes and fluctuations in the
interest rates and this might come as a bad news
to some. If you believe that the interest rates
are moving up, you have the option of locking the
loan. Ask your mortgage broker Brisbane CBD if
they offer this service and the charges for the
same.
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Which loan is the best?
There are various types of loan and in order to
determine the best one for you, the broker will
have to closely inspect your financial situation
and a variety of other factors. Just like a
doctor only recommends surgery after assessing
your medical situation in depth, a broker too
will gather all the necessary information about
your situation before making any recommendations.
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The different types of loans for you to consider
are fixed rate loans, adjustable rate loans,
negative amortization loans, and adjustable rate
loans. You must not hesitate to ask your broker
about the various pros and cons of the different
loans.
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Contact Us
433 Logan RoadStones Corner QLD 4120Suite 3,
Level 8, 179 Queen St,Melbourne, Victoria,
Australia 3000 Let us help you find the best
mortgage! http//www.oysterfinancial.com.au