Applying for a home loan can be confusing and daunting, especially if this is your first time buying a house. Here are some questions you could ask your mortgage broker to make sure you are clear on the process (and get the best deal).
- What is the most common mortgage you offer? Why?
- What type of mortgage would you recommend for me? Why?
- Are interest rates fixed or variable? If fixed, how long is the lock-in period and will I be able to get a lower rate if official interest rates go down?
- If I pay off my loan early, will I incur any charges or penalties?
- How much will I pay in total over the life of the loan?
- Are your rates, terms, fees and other costs negotiable?
- Will I have to purchase mortgage insurance? If so, how much will it cost and over what period of time?
- What payment methods are available?
- Is the mortgage serviced by you bank/company or another institution?
- How long does the loan approval process take?
- Once approved, how long will it take to close the loan?