Before you start working with your mortgage broker, you might feel a little unsure about what to expect. What will your broker ask you? What should you be ready to ask them? The truth is, you can ask your mortgage broker anything you are unsure about! However, sometimes it’s hard to know what you don’t know. Here are a few questions your broker can address. Use these as inspiration to think about other items you want to ask down the line!

What should I bring to the first meeting?

When you work with a broker, you will be meeting with them several times throughout the course of the buying process. Some brokers work in person, while others offer virtual services. Either way, you might not be sure what to expect at your first meeting. This is especially true if you are a first-time home buyer! You should feel comfortable with your broker, so don’t be afraid to ask them what you should have prepared for your first conversation. This will ensure you are ready for the meeting, and your broker will appreciate your preparedness. In many cases, brokers ask you to bring basic pieces of information such as identification, employment and income statements, and any debts you may have. It’s best to confirm this ahead of time so you can make the most of your first appointment!

How can I determine my buying power?

One of the most important things you will want to know is what you can afford in the housing market. After all, your buying budget will heavily influence the properties you view. You can ask your mortgage broker how the two of you will work together to determine your buying power. To work this out, your broker will want to know as much as they can about your current financial situation. This includes your income, expenses, debts, and savings. They can compare this with the current market trends like interest rates, supply, and demand. Brokers have a lot of information on market data that you might not have easy access to, so they will be extremely helpful when you are narrowing down your budget. Your broker will walk you through the process in more detail when you start working together.

Which mortgage product might be best for me?

Similar to working out your budget, brokers will be able to help you discover the right mortgage product as well. They can provide you with information on various mortgage products, and guide you toward one that may work best for your situation. It can be tricky to know if you are better suited for a fixed or variable-rate mortgage, for example, if you are not a mortgage expert. However, mortgage brokers have lots of experience working with clients from all kinds of backgrounds. They will be more than prepared to help you learn about different options, and what path to take.

How should I budget for closing costs?

Buyers sometimes forget about closing costs as they focus on their down payment and mortgage. However, these are also big expenses you must prepare for! Legal fees, land transfer tax, adjustments, and moving costs are just some of the expenses you will encounter as you close on the sale of your home. Of course, the exact price of these items will depend on your situation. That’s why it’s good to ask your mortgage broker what to expect. They can help you calculate how much you should have set aside based on your home’s purchase price and typical closing fees. In many cases, closing costs are between one and four per cent of the property’s purchase price.

…And anything else you want to know!

You should not be afraid to ask your mortgage broker anything! The world of real estate is complex, and it’s perfectly normal if you feel confused at any point. The important thing is taking advantage of your broker’s expertise so you can stay on track. You don’t need to know everything about buying a home in order to do so successfully, as long as you have a broker on your side. Whether you want to know more about your budget, debts, refinancing, payment due dates, or anything else, your broker can help you out. 

Remember, your mortgage broker is on your side and is there to help you have the best market experience possible. Brokers advocate for you and will always work to get you the right mortgage product. Part of that involves open communication and asking questions when you have them! You should never feel embarrassed about seeking extra help or guidance. Working with a broker should be a positive experience that helps put your mind at ease.

If you have any questions about your mortgage, get in touch with me!