There are various benefits of hiring a Mortgage Consultant/ Mortgage Broker, but before engaging in business with them you should be sure that the person you select is right for your process. Here is a list of some important questions to be asked before making one of the most valuable investments of your life. Hence before saying “you’re hired”, ask the above questions to select the right person.
From how many years are you in this business?
One of the most important questions to begin with is about knowing how long the person has been in the same job in the UAE. More experienced and skilled persons are better equipped to handle any situation. The UAE mortgage market is very unique and experts from other countries seldom understand the nuances of UAE banking practices. An experienced Mortgage Consultant should be able to answer any query in an easy-to-understand manner.
Do you have formal agreements with UAE based banks?
UAE based banks sign formal agreements with Mortgage Brokers/ Mortgage Consultants whereby Banks provide detailed product training to them and are updated regularly of their latest promotions and pricing. The Banks follow their own stringent Mortgage Consultant / Mortgage Broker selection criteria and if the Mortgage Consultancy Company is not formally signed with a bank it is very unlikely for them to add any value to their clients.
What is your Closing Turnaround Time?
Closing the transaction on deadline is really a big question to be asked. Your purchase MOU will contain a date to close the deal or else you may lose your deposit. Now that particular date is generally subject to the lender’s ability to close the deal on time. If the transaction is not closed on time then it means additional costs or problems for the buyer.
What will my total closing cost be?
Ask the broker or Mortgage Loan Consultant to provide an estimate of the total costs involved with purchasing a home. This will give you a better idea and you can review the costing, other fees and charges.
What other services do you offer?
Most Mortgage Brokers will offer to help you arrange insurance products to balance your mortgage. This can be a useful service as the products they offer will necessarily provide you with the most value for your money.
Which loan best suits my needs?
Ask them to recommend loan products that suit your specific requirements. You wouldn’t expect a doctor to suggest surgery before she assessed your medical situation, would you? Choose a person who gathers enough information from you before he suggests a certain type of loan.
What happens when mortgage interest rates change?
Ask the broker that whether the interest rates on mortgage will be fixed or variable. With this it is also important to know what happens when mortgage interest rates rise because knowledge and planning is your best defense. Understand the basics on how bank determines the rate changes. Proper understanding of this key area can save you significant amount of money in the long run.
How long will it take?
Knowing how much time different processes will take is also one of the important questions. There is a lot of documentation work which should be done on time because the process becomes invalid if the applications are submitted at the wrong time or too late. Hence have a clearance how long each process takes.
Keep in mind that it’s important how your Mortgage Broker responds to your questions. They should be open and confident in their responses and be able to answer any questions you have in a way that you can understand. It is essential to find the right person from the beginning because once you are committed; it becomes difficult to switch the process in the middle.