Questions to Ask Before Choosing a Mortgage Broker

16 March 2023

Selecting the right mortgage broker can mean all the difference in getting a great home loan or dealing with an ordeal that’s stressful and time-consuming. Here are some questions to ask potential brokers before you decide whether or not to work with them.

Begin by asking them about their fees. Typically, brokers receive between 1% and 2% of the loan amount as an origination or mortgage broker fee.
How much experience do you have?

Recording years of experience on your resume may be a common practice, but this may not be the most effective way to demonstrate to a hiring manager that you possess the necessary skills and experiences for the position. Instead of listing out all your career achievements, focus on highlighting specific accomplishments that directly apply to the position. Doing this helps distinguish you from other applicants by showcasing transferable abilities necessary for the role. It also demonstrates your dedication and desire to learn and progress within it.
Are you licensed and insured?

You may have noticed that most service agency advertisements and flyers include the words “licensed, bonded, and insured”. These terms serve to convey that their company is trustworthy and dependable.

Though these words may appear vague, they actually signify several things. Licened simply means the business has fulfilled all necessary requirements to obtain a license to carry out certain types of work in their state. They could also indicate proper insurance and payment of additional coverage through bonds.

Bonds are an additional form of insurance that guarantees clients a payment amount if licensed contractors or their workers cause property damage. It’s crucial for many service providers, as it offers them additional safeguards that the city or state cannot provide in case they do something wrong and harm their clients.

Insurance can be an expensive business expense for many small businesses, but it is a necessary evil. Without it, companies could quickly go under and end up bankrupt. Insurance providers will cover legal expenses, replacement of equipment and any losses that arise as a result of a lawsuit.

Liening and bonding your business can provide financial protection for your company in case of unexpected losses, while making clients feel safer about working with you. Furthermore, it may attract more customers by showing that your firm is legitimate and financially stable enough to continue doing what it does.

You can determine whether a business is licensed and bonded by checking with your local business licensing agency. They will have an inventory of all licenses, bonds, and insurances required for operations within their state.