Most Asked Questions for Mortgage Brokers

What are the Most Asked Questions for Mortgage Brokers and what is the difference between a Lender and a Mortgage Broker?

Buying a house is a big financial commitment, and for most people, mortgages are the answer to get the funds needed. However, the entire process can be daunting, and understanding the terms, conditions, and requirements could be overwhelming without proper guidance. This is where mortgage brokers and lenders come in to help you navigate the home buying process. 

What is the difference between a mortgage broker and a lender? A lender is a financial institution that makes loans directly to you. A broker does not lend money, a broker is the middle man who matches home borrowers with potential lenders in order to obtain the best possible mortgage terms for the borrower. 

Below we'll cover the most frequently asked questions mortgage brokers receive:

What rates do you offer?

This is one of the most common questions mortgage brokers receive. Homebuyers are interested in the rates that are available and how they can secure the lowest rates possible. Mortgage brokers are typically able to obtain better rates than when approached directly by a lender as they have access to multiple lenders, and thus, they can shop around to get the best deals.

What documents do I need?

Since getting a mortgage requires a lot of documentation, it's essential to know what documents are needed before the process begins. Mortgage brokers will help you with this by giving you a list of the necessary documents. Some examples of what you may need include your ID, pay stubs, bank statements, and tax returns.

Can I qualify for a mortgage with poor credit?

Credit history plays a significant role in the mortgage process. Therefore, it's common for homeowners with poor credit to wonder if they can still qualify for a mortgage. Mortgage brokers are equipped to handle unique situations, and as such, they can connect you with a lender that may be more willing to work with you. For instance, they may suggest a government-backed loan program like FHA loans, which has less stringent requirements for credit scores.

What is the minimum down payment required?

Most lenders require a minimum down payment before they approve a mortgage. The down payment can range from 3% to 20%, depending on the type of loan, credit score, and other factors. Your mortgage broker should be able to explain the down payment requirements and offer guidance on how to secure the down payment funds.

How long does the mortgage process take?

The length of time to complete the mortgage process is a significant concern for homebuyers. The total duration depends on different factors such as the type of loan, property appraisal, and documentation requirements. Generally, the process takes about 45 to 60 days to complete. A good mortgage broker will guide you through the process and keep you updated throughout the process.

In conclusion, the process of buying a home can be daunting, but with the right guidance, it can be a smooth and enjoyable experience. Mortgage brokers are here to help you navigate the process and ensure you get the best deals for your needs. Remember, when looking for a mortgage broker, it’s crucial to choose an experienced and knowledgeable professional. Hopefully, with this post, you're better equipped to handle the process and the most important questions to ask your mortgage broker. 

Katrina Rosendary 

Real Estate Advisor