What not to say to a mortgage broker?
You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.
What not to tell your mortgage broker?
You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.
What mortgage brokers don't want you to know?
- You don't need a perfect credit score. ...
- There's no such thing as “no closing costs” ...
- You can make extra principal-only payments. ...
- A 30-year loan isn't your only option. ...
- You can shop for mortgage lenders. ...
- Mortgage forbearance is possible.
What not to say to a mortgage advisor?
- 'I need to get an extra insurance quote due to … ...
- 'I can't believe how much work the house needs before we move in' ...
- 'Please don't tell my spouse what's on my credit report' ...
- 'I'm still working out the details on my down payment'
What to do before speaking to a mortgage broker?
Obtain a copy of your credit report and review it for accuracy. If there are any discrepancies, address them before meeting with a mortgage broker. Additionally, be aware of your credit score, as it can influence the interest rates and loan options available to you.
What is a bad mortgage broker?
Lousy mortgage brokers are bad listeners
A good sign: before offering any opinions, the broker quizzes you about your financial status and plans. A bad sign: the broker pretends to know what mortgage type you need, or the answer to any other issue that may be vexing you, without having first learned anything about you.
Is it worth talking to a mortgage broker?
A mortgage broker can also save a lot of time by finding out the best offers from every lender, saving you from making individual appointments with banks. A mortgage broker may also help you to assess your financial situation and make an overall recommendation of the best mortgage for your needs.
Is it best to talk to mortgage broker or bank?
a Bank. A mortgage broker can offer a wider array of options and streamline the mortgage process, but working directly with a bank gives you more control and costs less. Kate Wood joined NerdWallet in 2019 as a writer on the homes and mortgages team.
What credit score do mortgage brokers look at?
While most lenders use the FICO Score 8, mortgage lenders use the following scores: Experian: FICO Score 2, or Fair Isaac Risk Model v2. Equifax: FICO Score 5, or Equifax Beacon 5. TransUnion: FICO Score 4, or TransUnion FICO Risk Score 04.
Why use a mortgage broker instead of a bank?
Many individuals prefer to work with a broker regardless of their situation because it gets them access to lenders they wouldn't think to look for. Mortgage brokers may also be able to help loan seekers qualify for a lower interest rate than most of the commercial loans offer.
What are mortgage red flag rules?
- alerts, notifications, or warnings from a consumer reporting agency;
- suspicious documents;
- suspicious personally identifying information, such as a suspicious address;
- unusual use of – or suspicious activity relating to – a covered account; and.
What not to tell a lender?
- 1) Anything untruthful.
- 2) What's the most I can borrow?
- 3) I forgot to pay that bill again.
- 4) Check out my new credit cards.
- 5) Which credit card ISN'T maxed out?
- 6) Changing jobs annually is my specialty.
How early should you speak to a mortgage advisor?
It's important to see a mortgage adviser at the start of your mortgage journey whether it's your first mortgage or you're looking to re-mortgage.
What questions do I ask a mortgage broker?
- Are you regulated? ...
- How much do you charge? ...
- What's the best type of mortgage for me? ...
- How many lenders can you access? ...
- How do I need to save to buy my home? ...
- How much can I borrow? ...
- What is the interest rate, and will this change? ...
- Are there any restrictions on my mortgage?
What happens in first meeting with mortgage advisor?
During your first appointment, your adviser will start by conducting a thorough examination of your financial situation (and your partner's, if it's a joint application). They'll analyse your income and outgoings, expenses, credit history, deposit, and any other financial commitments.
What happens when you meet with a mortgage broker?
What you want is for the advisor to understand your needs, to help you know what your budget and affordability is, address any concerns and discuss options. You'll talk about what costs are involved, when things become payable and what budget you should set for legal fees, stamp duty and mortgage related costs.
Is it OK to talk to multiple mortgage brokers?
This has created a trend of using more than one broker to get a mortgage the misconception is that if one broker fails to get a mortgage, another will. Mortgage brokers can be invaluable for helping you get the mortgage you want, and in theory, there is no problem with engaging multiple brokers.
Who pays mortgage broker fees?
Most mortgage brokers receive an upfront commission for their services. They also add the goods and services tax (GST) on top. Many also receive an ongoing or recurring commission, known as “trail” or “trailer” commission, for each loan they secure. These commission payments are made by the lender – not the customer.
How long do mortgage brokers take?
| Application Process | How Many Days Does It Take |
|---|---|
| Application | 4-7 business days |
| Property Valuation | 5-7 business days |
| LMI (if applicable) | 1-2 business days |
| Unconditional approval and settlement | 4-6 weeks |
Is it better to go through a lender or bank?
The majority of home buyers choose correspondent lenders. Lenders specialize in standard mortgage loans and approve and fund mortgages. Traditional banks work well for standard mortgage loans. While they lack speed and price compared to correspondent lenders, they make up for it in size.
Which bank is good for mortgage?
| Mortgages | Editors Pick | Available Terms |
|---|---|---|
| Learn more Halifax Mortgages | Overall | 2 to 40 years |
| Learn more Nationwide Mortgages | Building society | 2 to 40 years |
| Learn more Halifax Mortgages | Customer Support | 2 to 40 years |
| Learn more NatWest Mortgages | Applying online | 3 to 40 years |
How do brokers get paid?
When a broker puts a borrower in touch with a bank, and the borrower's mortgage application is approved, the bank will pay the broker a commission. For as long as a borrower keeps their mortgage with a bank, the broker that arranged the loan will keep receiving a smaller ongoing commission, known as “trail” commission.
What credit score is needed to buy a $300 K house?
The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of mortgage. For an FHA loan, a popular choice among first-time homebuyers for its lower down payment requirement, the minimum credit score is usually around 580.
What FICO Score is used to buy a house?
The credit score used in mortgage applications
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)
Can you negotiate mortgage rates?
Yes, to some degree, mortgage interest rates are negotiable. Mortgage lenders have some flexibility when it comes to the rates they offer. However, in many cases getting a lower rate on your loan will come with a price, such as paying “points” to get a lower rate.
