Choosing your broker is as crucial as choosing your home loan. A broker has a very important role to play when it comes to home buying and related home loans. A good broker can offer incredible suggestions and analysis for the right mortgages that could simplify your home buying process. Here are a few questions you need to seek answer yourself, before hiring a broker.
ü Is the broker of good reputation?
ü How long has the broker been doing business?
ü What do other customers say about them?
Some of the probable question you should ask your broker before opting for mortgages and home loans are
· Does your approved broker have a extensive range of home loans from a wide group of lenders - banks and other financial institutions? The wider the choice, better are the chances of finding a suitable loan.
· Ask for relevant documents to check the qualifications and experience of your broker. You may even check the track record of the broker by asking for references from previous borrowers.
· Ask your broker if he is trained or certified under any association or recognized body, so as to prove his credentials.
· Sometimes brokers working for a certain lender might try to influence your loan choosing decision. Therefore, ensure your broker is not an agent for any lender to enable fair judgment.
· Ensure that your broker discloses details of all commission and payments received so as to confirm any sign of the loan recommendation being influenced by the broker’s payment (inclusive).
· Check with your broker at the onset if he is going to charge any fees for his service. Although, most of the brokers do not charge borrowers for using their service, others might.
· Ask your broker to present a comparative analysis of any recommended loans including the AAPR (average annual percentage rates) and the upfront and ongoing fees.
· Check out the services to be offered by the broker after the negotiation of loan is over – if he will be available for any ensuing loan enquiries or in case of any impending dispute between you and the lender.
· Ask your broker if he is ready to comply with the Privacy Act, so as to ensure the security of your personal and financial information.
Ask your broker if he has professional indemnity insurance. This will act as a safeguard in the event of legal action.