Financing is normally the best place to start in every transaction where a mortgage will be part of the equation; however not all mortgage products are created equal and the industry perpetuates a simplistic view of financing by continually turning the conversation to price. If you interview three Edmonton mortgage professionals, you’ll likely get more of a perspective on a mortgage as a product instead of just a price because not all mortgages are equal, even at an equal rate.
Just like we recommend interviewing at least three Edmonton realtors before making a decision, we also recommend interviewing at least three mortgage professionals in Edmonton before making a final decision on which lender to work with. While you are interviewing lenders, keep in mind what you want from your mortgage. Do you want the option to pay it off early? Do you want portability? If so, you need to make sure these are options available to you with your local lender. Some of the lower rates may not include these options with that low rate.
The most important thing is that you find a mortgage that fits not only with your budget, but your lifestyle. Once you have completed your lender interviews you will have a better idea of which lender will suit you best. Be smart about your mortgage and remember, very rarely does one size fit all!
At HACK&Co, we facilitate a home sale every four days in Edmonton and surrounding areas and because of this, we have an uncommon frequency of contact with mortgage lenders in Edmonton. By finding so many families homes, we have witnessed countless mortgages brokered and are able to identify exceptional talent when it comes to choosing your lender. We work with some of the top lenders in the business and have asked them which questions they recommend you ask while interviewing brokers to find the best mortgage for you.
Here is what they had to say:
How long have you been a mortgage professional?
This question opens the conversation to talk about your mortgage professional’s qualifications and, generally speaking, experience leads to a greater exposure to market fluctuations and various product lines. An experienced lender will be able to handle any challenge you may experience with your mortgage.
What else besides rate should I look for in a mortgage?
Rate is a very important component of your mortgage- we all know this- but you must consider more when choosing your mortgage than just rate. Consider prepayment penalties, flexibility options, and refinancing restrictions when choosing your mortgage so you don’t end up with a product that isn’t right for you.
Do you do pre-qualifications or pre-approvals?
A mortgage pre-qualification allows a buyer to get an idea of what they may qualify to purchase, without having supporting documents reviewed. A mortgage pre-approval is similar to a pre-qualification in that the buyer has an idea of price range to shop in, but supporting documents are provided and reviewed upfront. Make sure you have the documentation to support your purchase through a pre-approval before you make an offer on a home so you don’t end up with an unpleasant surprise.
Can you explain your process step-by-step from right now to when I take possession?
It’s important for you to understand your mortgage process thoroughly. Your lender should have a great process and a good product line-up. They should be compatible with your personality and be someone you would like to work with long-term. Make sure their process meets your needs and makes you feel confident and comfortable with the service you receive.
After I take possession, if I wanted to make changes to my mortgage, do I call you?
This question is important because not all mortgage professionals can offer you after sale support. If you want to change your payment date, you may have to go through your bank, not your lender. Understanding how to facilitate changes to your mortgage in the future is important to know when choosing your lender.
Why should you be my mortgage professional?
If you are looking for someone to help you, you would want to know how they could help you. How your lender answers this question will tell you how much experience they have brokering mortgages. Your lender should be able to answer this question in a meaningful way. If they are unable to articulate their value, you have your answer.
Want to see how we can make a difference to your home buying strategy? Find out if we’re a good fit. Book a strategy session today.