Residential Mortgage Application: 3 Questions for Your Broker

When you are filling out a residential mortgage application, you are going to want to make sure that you ask your broker certain questions. Here are a few questions to ask your mortgage broker.

1. How Are You Paid?

You want to make sure that you understand how your broker gets paid. Some of them get paid a flat fee by a mortgage lender just for referring you. Other mortgage brokers get a percentage of the total amount of money that you borrow. The more money a broker gets paid, the more the lender is going to charge you in the long run.

2. What Is the Interest Rate?

When your mortgage broker presents you with options, you are going to want to make sure that you understand what the interest rate is on each loan. Ultimately, you would like to reduce the amount of interest that you pay for any particular mortgage. This is going to affect the size of your monthly payment and the amount of money that you pay for the loan overall.

3. What Are the Closing Costs?

In addition to the interest rate, you are going to want to understand the closing costs. Closing costs are a big portion of the loan, and you do not want to pay any more than you have to.

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