1. What array of lending institutions do you as a Mortgage Loan Broker have in your lending panel?
Make sure that the person you are dealing with is a Mortgage Loan Broker or Refinance Mortgage Broker who has access to a panel of lenders as opposed to a Mortgage Representative who only represents one lender and that lender's choice of products.
2. What is the best type of home loan that would suit my cashflow cycle and financial structure?
Make certain that the Mortgage Loan Broker or Refinance Mortgage Broker demonstrates how the particular type of home loan will maintain your financial arrangement and maximise the use of your cashflow. It is imperative that the method in which the loan repayments are needed to be made does not restrict the effective usage of your cashflow in reducing the amount of home loan interest payable.
3. Is it advisable to focus on the loan products with the lowest home loan interest rates?
If the reply is a distinct yes, ask why and move forward with caution! There is nothing wrong with cheap loan interest charges as long as the lender shows an established track record of low interest rates and funding!
Home loan products that seem to offer a grand deal may contain high penalties, payments and charges, or may not offer the flexibility of usage that you call for in the future. To prevent selecting a loan you may well later regret, treat with caution a recommendation structured chiefly on low interest rates.
4. What are the best home loan products to fit my immediate situation and goals, and how will they maintain any future objectives I may have?
Make certain the Refinance Mortgage Broker recommendation contains a minimum of 3 home loan products that are also representative of a reasonable comparison between the products. Beware of a comparison that contains 1 product that appears to be far better to the additional 2! Look for product features and product versatility that will allow you to amend the home loan product to meet your future objectives and plans.
5. Aside from the fees and charges associated with the new loan, what additional costs and charges am I liable to incur?
Finance Institutions, Service Providers and Government Departments often charge fees/cost connected with the financing process and often these may be a pricey surprise for the unsuspecting. A worthwhile Mortgage Loan Broker or Refinance Mortgage Broker will provide you with a Loan Costing Sheet itemising all costs, charges & fees connected with the proposed home loan process.
6. How do you get paid and what is your payment arrangement?
Requesting an explanation in writing of how your service provider gets compensated for their act will assist identify and minimise conflicts of interest. If the recommended Lender's commission is by far the uppermost payment of all lenders on the broker's lender panel, move forward with caution as this may possibly denote a conflict of interest.
7. Do you provide your clients with a Mortgage Broking Contract?
Not every Mortgage Loan Brokers service is specific in what it will deliver as opposed to what it is that you require as a final product. Therefore it is highly suggested that a Mortgage Broking Agreement be drawn up among the parties outlining the scope of services/products to be supplied and charges connected with the Mortgage Refinancing.
8. Do you perform FREE Yearly Reviews and what further services do you give?
Find out how keen the broker is to stay in touch with you and check that your mortgage is meeting with your needs. What extra services does the broker give either directly or via referral that might be of benefit to you and are there discounts to be had if you bundle these services with that of the home loan?
9. Where may I turn if we have a disagreement that cannot be resolved?
Do you offer an External Dispute Resolution Service (EDRS)? Request the service provider to give details of the complaints procedure offered by their business, outlining who you might complain to and the EDRS they are an associate of? A valuable Mortgage Loan Broker will present you with a personalised Finance Services Guide at first meeting that will define all the fine points of their complaints procedure as will their Mortgage Broking Contract.
10. Are you an MFAA certified Refinance Mortgage Broker?
By dealing with a broker who is a certified MFAA associate, you are doing business with a broker that has satisfied minimum standards of education, experience and ethics to uphold their association status.
Article Source: http://www.articlealley.com/article_2103068_19.html
Author: Kezz Roby
About the Author: Kevin (Kezz) Roby is a Professional Credit Advisor, Licensed Financial Planner and Mortgage Planner who specialises in the development and implementation of Lifestyle Financial Plans and Mortgage Plans that effectively reduce lifestyle and mortgage debt while building wealth and sustaining a desired lifestyle.
http://www.refinancinggroup.com.au