Buying a brand new home is a huge step forward in every person’s life, no matter whether this is your first property purchase or your fifth! Property buying can be a fairly complicated process if you do not have advice or expertise with you… but this is where a mortgage broker can help!
Hiring a mortgage broker is a great way to get reliable advice from someone familiar with the property market, but one query that we come across is “What questions should I ask my mortgage broker?”
In this blog post, we are going to be looking at 10 of the best questions you can ask your mortgage broker to make sure that you have all of the information that you need while also checking that they are legitimate.
Mortgage Broker Interviews
Before working with a mortgage broker, interview them to ask about their qualifications and experience just to make sure that you are satisfied with the quality of service they can provide you with.
This is the ideal time to ask questions about mortgages that you feel you need to know before proceeding with your application. These kinds of questions should only be asked when you are comfortable in your understanding that your chosen mortgage broker is properly qualified and can help you effectively.
The 10 Best Questions to Ask
So, what are some of the best questions to ask during these interviews? You have plenty of options to choose from, but below we have compiled a list of 10 questions that give you a general overview of what you have in store during the house-buying process.
1 – Are You Qualified and Regulated?
To make sure that your mortgage broker is reliable, you will need to check that they are both qualified as a mortgage broker and regulated by holding an FCA-recognised qualification such as a CeMAP or Cert MA.
These qualifications are something that every mortgage broker must have before they can start providing their services to other people and is a great marker for you to figure out whether the person you are speaking to is legitimate or not.
2 – Can You Explain Your Services?
One of the most important things that you will need to fully understand is the offering of services offered by your mortgage broker. This interview setting could be a good way to ask about the services that they will be offering to you.
3 – How Much Do You Charge?
Once you are confident that you have a reliable and trustworthy mortgage broker, you can begin to ask more questions about how much they may charge for their services. You can then judge whether you feel that this fee is worth the service they are providing, or if you would like to opt for another broker.
4 – What Type of Mortgage Should I Opt For?
A more general question to ask would be for some advice on what type of mortgage you should choose. You will need to provide some information about yourself like your current living situation and financial status.
There are plenty of options for mortgages that you can choose from including a repayment mortgage, interest-only mortgage and much more. Your mortgage broker should have the expertise to recommend one of these options for you to make an informed decision.
5 – How Should I Save to Buy a Home?
How much you need to save will largely depend on a variety of factors. These include the value of the property as well as the percentage of the property that your lender is willing to lend to you.
This can vary depending on whether you are a first-time buyer or have already been through the process before, first-time buyers will be able to get roughly a 95% loan-to-value (LTV) ratio.
6 – How Many Lenders Do You Work With?
Having a mortgage broker who has connections with a lot of mortgage lenders is a must-have if you want to get a competitive price point. You may come to find that your mortgage broker only typically works with one specific lender – While this is fine, it would be more beneficial to you to find a broker who has various connections.
7 – What Documents Will I Need?
One of the most important aspects of securing a mortgage is making sure that you have all of the correct information and documentation to present to the lenders. Employing the assistance of a mortgage broker means that they will be able to support you with the paperwork side of mortgage lending so having these documents is essential.
The answer to this question will typically consist of some of the following:
- Proof of Address
- Some form of ID
- Proof of utility bills
- Proof of income
- Proof of deposit
- Recent bank statements and payslips
- Proof of income if self-employed
8 – How Much Will I Be Able to Borrow?
How much you will be able to borrow could depend on a plethora of factors, so once you have given your mortgage broker all of the information necessary, they should be able to give you a rough estimate as to how much most lenders would be willing to give to you.
Usually, the figure will be around 4.5 – 5.5 times your annual salary – for example, if you make an average salary (around £30,000), you’ll be able to lend around £150,000. This can differ depending on the lender as some may offer up to 6 times your salary.
They will also be taking factors like your monthly spending into account before they reach a final decision on what to lend, so this should be kept in mind throughout your process.
9 – Is There Anything Else You Can Help Me With?
Asking if there are any other services that a mortgage broker can help you with is a great way to make sure that you are receiving the highest quality of service. Making the most out of your money will be vital, considering you will have to start thinking about mortgage payments afterwards.
Nearly all mortgage brokers will be able to provide you with several services that extend beyond just this initial consultation. This is something that the team at JG Mortgage Services Limited works extremely hard on.
10 – How Can I Get in Touch With You?
Finally, if you are completely satisfied with the answers provided by your mortgage broker, you should ask them how you should keep in touch for future reference. You can get in touch with JG Mortgage Services Ltd at 01244 738422 or email us at info@jg-mortgage.com and we will be happy to help with any of your queries.
