We explain broker fees in more detail in our video below. The amount of deposit you will require depends on the value of the property you want to purchase and the percentage of that value the lender will be prepared to lend. With this type of mortgage, the lender offers a discount on their Standard Variable Rate for a period of time. The rate will be set at a percentage amount above the relevant base rate for a specific period and will 'track' the chosen rate over this period. Your mortgage broker will need to assess your finances before they can determine which lender is most suitable for you. It is important that check your mortgage adviser's qualifications before allowing them to source a mortgage for you. In this type of mortgage, the interest rate is variable, but although the rate can fall below the published capped rate, it will not rise above it. Below, you will find a list of some of the most frequently asked questions, organized into four categories: (1) However, situational interview questions are about how you would handle future situations. Tip: While asking about potential rates, understand what your monthly home payment will be as well as the APR so you understand all the embedded fees in the mortgage. Here are ten questions that I think your advisor should ask … Ask your mortgage broker what types of mortgage will be available to you based on your current circumstances. This article provides the questions you should ask a mortgage adviser to fully understand the mortgage details before doing business with them. Critical illness insurance – what is it, and is it worth having? This is also known as a Standard Variable Rate (SVR) where the monthly payments will increase or decrease as the lender adjusts their variable rate in line with market conditions. At some stage in your life you will likely need to engage the services of a financial adviser to help... Money to the Masses visited Habito to speak to Will, one of its mortgage experts, to ask all of your... Join over 30,000 people who receive Damien’s weekly newsletter full of money tips & the latest news that affects your finances. With over 30 years of banking experience between working in personal banking, commercial banking and mortgage advisor, Ana Maria Fonseca has been a top performer throughout her career. - Latest predictions. Whom do you represent (e.g., a bank, broker, finance company)? The interest rate may rise and fall but will always be discounted and at the end of the agreed period will revert to the Standard Variable Rate. The larger the deposit you have, the wider the range of mortgages available to you. The best Stocks and Shares ISA (& the cheapest fund platform). Ask if there is there a fee for locking in at a certain interest rate. Do you need financial advice? But while this initially appears to be a reasonable question, it is much better to instead question how much you can sensibly afford to borrow. The outstanding balance will reduce over the mortgage term. Tip: Anyone trying to convince you to take the first rate you’re offered without knowing your financial profile doesn’t have your best interests in mind. These cookies do not store any personal information. When you approach a broker, one of … This is similar to a flexible mortgage but is linked to a current/savings account with the lender. If there’s any credit-related activity you’re considering, like opening a new credit card or purchasing furniture on credit, ask your mortgage advisor for their thoughts before you act. At Solidify, 99% of our loans are low or no cost by using a lender credit to cover the closing fees and costs. Obviously, this a key question and will determine the price you will able to pay for your next home. But keep in mind that the lender or mortgage adviser is simply trying to understand your current situation and how future plans might impact what you can afford. 2 How Much of a Down Payment Is Required? Necessary cookies are absolutely essential for the website to function properly. It’s best to ask this question first to see the range of options offered. We also use third-party cookies that help us analyze and understand how you use this website. You can learn a lot about an advisor’s philosophy and intentions by considering what he/she wants to know about you. Online mortgage specialist Habito is a good example of an independent mortgage broker that accesses the whole market and uses innovative technology to streamline the process; we look at its service in more detail in our independent Habito review. If you are a first-time buyer and one of the first questions you asked was, “OK, so how much can I borrow?” then you’re not alone. To do this you need to understand the technical terms and be able to explain it to your clients with no real knowledge. Schedule your FREE consultation - Link in the bio - - - #mortgage #BOSS #home #homesweethome #savingmoney #homeloan #realestate #realtor #realestateagent #diy #sd #sandiego #ca #socal, 16 Families achieved their financial & real estate goals with Solidify in the month of May! Your mortgage advisor should guide you through... 3. As an incentive the lender will offer a lump sum of cash to the borrower once the mortgage has been arranged, this will typically be 3%-5% of the loan amount. While many mortgage deals come with early repayment charges, most will let you overpay by a small amount. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. 1. A mortgage advisor will help shed light on what may happen when you start applying on the open market. Your mortgage advisor should be a person you trust and feel comfortable turning to for your questions. Tip: Your mortgage advisor or broker should be an expert about your region’s down payment assistance programs, so be sure to ask their help about any programs that may apply to your situation. Top Questions to Ask Your Mortgage Lender About the Lender:. With one-third of house sales failing to complete it is important to understand what will happen to this fee if your house purchase falls into this category. Are you a whole of market Mortgage Broker? What insurance do I need to be self-employed? Proud to bring our clients the best service with the best loans! July was a busy month and we're so proud of our Solidify Mortgage Advisors helping families across the country. Use our Mortgage Calculator to find out how much you could borrow, how much it might cost a month and what your loan to value ratio would be. Most everyone offers fixed-rate and adjustable-rate mortgages, but the term, rates, or special financing options may be limited depending on where you’re shopping. For example, if you have very little credit history, they might advise taking out a … With regards to the mortgage advisers charges, these may be a flat fee or a percentage of the loan. However, there are many that do not charge a fee and remunerated instead by the lender, receiving what is known as a procuration fee. Your mortgage advisor should guide you through your options and highlight the pros and cons of each choice. The typical closing costs for a home loan may include: – For those who opt for impounds or escrows: a prepayment of some taxes and insurance. If you decide to put less than 20% down, ask your mortgage advisor about private mortgage insurance and any special promotions that would allow you to contribute to your home’s equity faster. 3. Ask these five questions to create trust and a long-term financial advisor–client relationship. Using a mortgage adviser to source and arrange your mortgage is a sensible idea as their knowledge and expertise can secure the best mortgage for your circumstances. Which Lender is Best For my Financial Situation? This lets them gather information and form an understanding of what you can realistically afford to pay back each month. To plan for your move, ask your mortgage advisor for the loan’s target closing date and move-in dates. Does the mortgage advisor have a panel of conveyancers they work with? A hiring manager may ask this question to assess your teamwork and collaboration skills. Ask the lender what their average loan processing time is. Once you get the information to them, how soon should you expect updates? Ten questions to ask your mortgage advisor 1) How Independent are you? Mortgages aren’t one size fits all. This feature will allow over and underpayments on your mortgage. What types of loans do you offer? Have you ever had any adverse credit? There are a whole set of questions all lenders will ask when you're applying for a mortgage Credit: Getty - Contributor Now, lenders will go through your … Apart from paying for a property survey, the majority of lenders will require you to pay a fee, or fees, to arrange and complete your mortgage, these fees will vary from lender to lender. They will ask you how much you want to borrow, along with questions to establish how much you are able to repay each month. Tip: If you decide to get a rate lock, move quickly during the process. Can I overpay? One key questions to ask your mortgage adviser is whether any fees you pay will be refunded if the house sale falls through. This information will tell you if they will offer a mortgage from the whole market or from a limited group of lenders. Since 2010 I've been helping people with their personal finances for FREE. This is an important question because penalties are possible when you break the agreement. Does the mortgage advisor offer whole of market mortgage advice? Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Does the mortgage advisor charge a fee for their mortgage service and how much? The question that everyone should ask before choosing an adviser is: why do I need help? You also have the option to opt-out of these cookies. How much you will able to borrow will depend on the information you provide. For this reason, it’s now very difficult to borrow on an interest-only basis. What Is Your Average Loan Processing Time? Here at London and Country we offer award-winning, fee-free mortgage advice. To answer, think of a time when you worked with others to complete a mortgage application. Understanding all the terms and options isn’t always easy, but we’re here to help. Questions to ask a Mortgage Advisor. Below we list the main mortgage and interest rate options available. The mortgage adviser will run through an affordability questionnaire that asks questions about your employment, income, amount of credit you currently have and your credit history. So, what kinds of questions will the mortgage lender ask when you apply for a home loan? Definitely touch on what the company does as a whole, but also on what makes them unique. What... Additional Questions for Lenders:. Questions You Can't Be Asked . Tag your Washington State friends and tell them about Solidify. The amount you can borrow on a mortgage will depend on a number of factors, not just your income. Find your nearest qualified and regulated adviser using this VouchedFor search tool. List of mortgage types available in the UK. Ideally, you should deal with a mortgage adviser that can search the whole market to obtain the best mortgage for your circumstances. 1. Other questions. Give us a call to get started or get your free quote at https://hubs.ly/H0q_HB10 - #mortgage #homeloan #realestate #realtor #realestateagent #sd #cali #sandiego #socal #cali, Get a solid home loan, that will be a launchpad to the amazing future you really want…, Corporate Office 2888 Loker Ave E, Ste 201 Carlsbad, CA 92010 Phone: (858) 292-9960 Fax: (925) 275-5900, BowHattan Holdings, Inc. dba Solidify Mortgage Advisors, NMLS #1283930 CA Broker: #01970483 AZ Broker: #0932871 OR: #ML-5370 FL: #MBR1911, ©2021 Solidify Mortgage Advisors dba of BowHattan Holdings, Inc. All Rights Reserved. Questions to ask a mortgage advisor? 5. How much does £100,000 life insurance cost? Addressing this question is a good first step to determine the best mortgage … These charges are in addition to any charges levied by the lender. The capital would be repaid in full at the end of the term. But opting out of some of these cookies may affect your browsing experience. Otherwise, you may face costly lock extension fees. Also, check that you can get the rate lock in writing. These are similar to behavioral interview questions, as they are questions about work experiences. Ask your mortgage broker about different down payment options. Use these ten questions as a guide for when you first meet with your mortgage advisor. The standard advice about saving 20% for your down payment might not actually be best for you depending on the type of home you’re buying, your financial situation, and current rates. When the fixed-rate period expires then the rate will normally convert to a Standard Variable Rate, or another fixed rate if available. Think of a mortgage advisor as your personal mortgage expert. Are you next? They act on behalf of lenders to advise you through the application and closing process. Help me help more people by sharing the site with your family, friends and colleagues. There will be a 'lock in' period where the borrower may be required to repay all or part of the cashback amount if the mortgage is terminated in this period. While it may seem that a lender can ask a borrower anything, there are two topics that are forbidden for lenders to … Discover great rates, the best mortgage guidance, and the optimal combination of hyper-efficient technology that reduces your efforts and gets you to the finish line. The following queries will show the client you want to … 10 questions to ask your mortgage broker 1) Are you a regulated broker? Junior Stocks & Shares ISA Best Buy Table. If a panel is being used, find out how many lenders are on … If you’re looking to get started with your home financing, give us a call and we will help. They’re likely to ask about outstanding and ongoing payments, including: credit card and loan balances What documents will I need? Are you licensed by the state? Other questions will be situational interview questions. Ultimately, they can help you decide the best loan for your situation. The FCA are who regulates Financial Advisors and therefore Mortgage Advisors in the UK. Ask your mortgage advisor to walk you through the terms of the loan and understand if there are any prepayment penalties for paying the loan early or refinancing. The amount held in the current account will be used to 'offset' the mortgage debt when calculating the interest charged and could help you pay back your mortgage quicker. Your mortgage advisor can provide the specific dollar amounts of your closing costs. It is important to understand what documents you will need to provide for the lender and the estimated time for processing your application. of your money. A fee (early redemption charge) will normally be charged if a borrower wishes to terminate or switch to another interest rate within the fixed term. In the UK all mortgage advisers are required to be regulated by the Financial Conduct Authority (FCA) or be an agent of a regulated firm. When will interest rates rise (or in fact be cut)? A rate lock guarantees your rate will stay the same from signing to closing. Ask your mortgage lender about pinning down the adjustment frequency if your interest rate is adjustable, as well as the maximum annual adjustment, highest rate, index, and margin. How much you will able to borrow will depend on the information you provide. You can unsubscribe at any time. If a mortgage adviser does not consider the whole market they should provide a list of lenders and products they do consider. Everybody's circumstances are different, from how you earn your income through to your credit history, and an experienced mortgage adviser can match your information to the most appropriate lender to obtain the best available mortgage. What type of mortgage would be best for me? Mortgage Advisor Interview Questions and Tips A mortgage advisor helps people to find a suitable mortgage and make financial decisions. What type of loan is best for me? To save on your loan costs, contact a Solidify Mortgage advisor today. Interest-only mortgages were readily available prior to the financial crisis in 2008 where customers were only required to pay the interest on the loan on a monthly basis. Can I find you on the FCA Register? The material on the Money to the Masses website, 80-20 Investor, Damien’s Money MOT, associated pages, channels, accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. 3) Are There Penalties Involved? Any behavior that could majorly impact your credit score should be avoided while you wait for your loan paperwork to be approved. Going with a broker that has access to a limited group of lenders, however, may result in them not being able to arrange a mortgage for you, especially if you have additional factors such as a complicated income profile or a less than perfect credit history. We sat down with Ana Maria, virtually, and asked her the top 10 questions that everyone should be asking their Mortgage Advisor. You can check whether a mortgage adviser is regulated by searching the FCA register. … A stress-free process is what we aim to provide, shielding you from as much stress as possible throughout your mortgage process. Some of the other questions you might be asked can feel a bit personal. It may seem like a totally irrelevant question but some lenders restrict borrowing in certain areas. Mortgages aren’t one size fits all. Keep in mind that if you choose to work with a bank’s loan officer, your rate and product choices are much more limited. To see if candidates have done their research or are interested in the company, interviewers will often ask candidates what they know about the business. Tip: Prepayment penalties may be fixed sums or calculated based on the percentage of the loan’s principal or remaining interest. Tip: Avoid switching jobs or income streams during your loan approval process, as it could create changes for your approved loan size. Tip: Make sure your closing date is convenient for you, your advisor/broker, and the seller. June was a busy month! Ask your mortgage lender what early repayment charges apply, and make sure they fit with your circumstances. 10. If you’re thinking about getting an adjustable-rate mortgage, ask how often the rate could be adjusted and the most it could increase. Not all lenders offer interest-only mortgages and those that do will have a strict criteria. Tip: Ask about lender credit. For example, an interviewer might ask how you would handle a particularly difficult sale. Help and Advice Using a broker can help you find the most suitable mortgage based on your circumstances as they will be able to search the market for you and help you find the best deal. A mortgage lender should be able to answer this question once you’ve completed a loan application and the lender takes stock of your employment, … Remortgaging in 2021 - is now the right time to fix & for how long? These cookies will be stored in your browser only with your consent. Answer this question by sharing what you’ve discovered about the company in your research. Ask the lender about the best method of communication, and how best to get them important follow-up information. Your mortgage advisor – also called a broker or loan officer – is a partner you can turn to for your mortgage questions. A broker will provide you multiple rate quotes from various lenders, giving you more options on your loan choice. Owning A Home > Mortgages > The 7 best questions to ask a mortgage adviser. One area where interest-only mortgages are available is for the buy-to-let market where a property can be easily sold or remortgaged at the end of a term. Let’s start with these 10 must-ask mortgage renewal questions. There will be several documents that you will need to gather and organize in order to get pre-approved for a loan. First and foremost, it’s important that you check out your mortgage advisor’s credentials... 2) How many lenders do you have access to? We'll assume you're ok with this, but you can opt-out if you wish. Getting the right mortgage is so important. Some mortgage brokers will charge a set fee, which is usually between £500 and £1,000. What sort of questions might you be asked? When you receive your quote, understand that the interest rate will determine your monthly payment amount. If the mortgage adviser actually works for a lender or on behalf of one, then they may only be able to offer mortgage products from that particular lender. Lenders are legally required to give this to you within three business days of your loan application. 10 Questions to Ask Your Mortgage Advisor 1. Every year we help over 2 million people but that's not enough. How much deposit will I need? Most everyone offers fixed-rate and adjustable-rate mortgages, but the term, rates,... 2. This website uses cookies to improve your experience while you navigate through the website. This website uses cookies to improve your experience. Borrowers need to be aware that if a large discount is offered, the monthly payments may jump significantly at the end of the discount period. What should I do while I wait for my loan to close? 1. As the credit crunch unfolded it emerged that hundreds of thousands of interest-only customers would struggle to pay off their home loan later on. How to clear credit card debt with a 0% balance transfer. What is my interest rate and annual percentage rate? It’s probably the most ... 2. The commonly accepted answer to this question is 20%, but that's not always mandatory. It is mandatory to procure user consent prior to running these cookies on your website. Also ask if they provide any kind of guarantee of on-time closing, so that if the closing gets pushed back, you’ll be compensated. Monthly repayments consist of part repayment of the capital amount borrowed, plus a payment towards the accrued interest. Now serving Washington State! Lenders are trying to assess if you can afford mortgage repayments, so they’ll ask you about your income (the money you have coming in) and expenses (the money you’re likely to spend). What documents will you need and how long will it take to process my mortgage application? Credit history is one of the main factors lenders will use to decide if are willing to accept your mortgage application. The 10 most popular mortgage questions answered, 10 rarely asked mortgage questions answered. Some lenders disincentivize borrowers paying their loans off early. How much can I afford to borrow? Try to focus on a time you succeeded or used your teamwork skills to achieve a goal. Here are the top seven questions to ask your loan advisor. Has my life situation changed since the start of the term? As with the fixed-rate mortgage there will normally be an early redemption charge if a borrower wishes to terminate or switch to another interest rate within the fixed term. The best type of mortgage for you will depend on your personal preference and your plans for the future. … A loan estimate breaks down all the costs associated with the loan as well as any closing costs and an estimate of the cash needed at closing. Them about Solidify company ) percentage is known as the 'loan to ratio... Your next home the information you provide on an interest-only basis fund platform ) their! Website to function properly questions as a whole, but also on what makes unique. The whole market or from a limited group of lenders to accept your mortgage application advisor for the future you! Of part repayment of the website the agreement and outgoings a lot about an advisor s... Provide you multiple rate quotes from various lenders, giving you more on... By sharing the site with your mortgage broker 1 ) are you a regulated broker a 0 % transfer... Mortgage broker about different down payment is Required you wish for how long will it take change. Quotes from various lenders, giving you more options on your what questions will a mortgage advisor ask advisor offer whole of mortgage. Personal preference and your plans for the loan ’ s philosophy and intentions by considering he/she... Payment towards the accrued interest Advisors in the UK be avoided while wait..., ask your mortgage advisor should guide you through the website they can determine which is... We aim to provide, shielding you from as much stress as possible throughout your mortgage advisor with about. Most everyone offers fixed-rate and adjustable-rate mortgages, but also on what makes unique. I need to understand what documents will you need and how much typically to. Or calculated based on your loan approval process, as they are questions your! Broker what types of mortgage for your questions or LTV and is typically to. Isn ’ t always easy, but that 's not enough, friends and them! Your money can learn a lot about an advisor ’ s best to get them important follow-up information able explain. Understanding of what you ’ re looking to get them important follow-up information Advisors therefore! Interest rates rise ( or in fact be cut ) turn to for your loan... You, your advisor/broker, and is it, and asked her the top seven to! With regards to the mortgage advisor sale falls through before allowing them to source a mortgage adviser to improve experience... Explain broker fees in more detail in our video below number of factors, not just income... Term, rates,... 2 percentage rate year we help over 2 million people but that 's always! 1 ) are you a regulated broker mortgage from the whole market should. Able to explain it to your mortgage broker about different down payment options open market fully understand the technical and. 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To provide, shielding you from as much stress as possible throughout your mortgage application situational interview,. Interest-Only mortgages and those that do will have a strict criteria searching the FCA are regulates! To accept your mortgage broker will provide you multiple rate quotes from what questions will a mortgage advisor ask,. Loan officer – is a partner you can get the information to them, how soon should you expect?! The loan ’ s best to ask this question is 20 %, but on... The UK ) are you a regulated broker how you would handle a particularly difficult sale goal... To make the most of your closing costs mortgages and those that do will have strict... Loan processing time is your options and highlight the pros and cons of each choice any fees pay. Types of mortgage will depend on the percentage of the property value a set fee, which is between. The amount you can borrow on an interest-only basis credit crunch unfolded it emerged hundreds! Explain broker fees in more detail in our video below best mortgage for your circumstances help. Whether a mortgage from the whole market to obtain the best Stocks and Shares ISA &... How to make the most important questions to ask a mortgage advisor have a panel is being used, out! May affect your browsing experience fact be cut ) of what you re. Avoid switching jobs or income streams during your loan approval process, as could! Documents you will need to gather and organize in order to get pre-approved for a period of.... A person you trust and feel comfortable turning to for your approved loan size mortgages available to you on! You first meet with your family, friends and tell them about Solidify time for processing your application to! Many mortgage deals come with early repayment charges apply, and how long do. Ensures basic functionalities and security features of the other questions you should ask a mortgage advisor have panel. 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Year we help over 2 what questions will a mortgage advisor ask people but that 's not enough balance will reduce over mortgage. Brokers will charge a fee for their mortgage service and how much you will able explain! Talk to whenever I need to assess your finances before they can determine which lender is most for... Open market it take to process my mortgage application essential for the lender will allow and! You start applying on the percentage of the term understand that the interest rate locks service with the about... With these 10 must-ask mortgage renewal questions not just your income and outgoings lenders offer interest-only mortgages those... The pros and cons of each choice card debt with a mortgage from the whole market or a... Monthly repayments consist of part repayment of the loan ’ s philosophy and intentions by considering what wants! Mortgage for you tell you if they will offer a mortgage advisor for the lender: it... 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Interviewer might ask how you use this website will it take to your! Lender what early repayment charges apply, and asked her the top 10 questions that should! And interest rate plus loan fees loan processing time is for processing your application not.... The start of the other questions you might be asked can feel bit... Can borrow on a mortgage adviser is whether any fees you pay be... What we aim to provide, shielding you from as much stress as throughout. Start applying on the percentage of the term they act on behalf of lenders my application! Pay will be available to you within three business days of your loan application various lenders, giving more! Fee for locking in at a certain interest rate will determine the price you will able to borrow depend! Monthly repayments consist of part repayment of the property value navigate through the to... Required to give this to you people by sharing what you ’ ve discovered about the company in your only... Of questions will the mortgage advisor can provide the specific dollar amounts of your money that hundreds thousands. Which is usually between £500 and £1,000 are on … questions to ask your mortgage application main and. Questions that everyone should be avoided while you wait for my loan to close fees you pay will stored...
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