Before we dive into how to find a good professional, I would like to highlight several areas in which broker bias can be a problem. First, brokers get paid based on the size of the loan. The more credit, the more they are paid. Therefore, some brokers are interested in taking more credit than you can afford. To avoid this and know for sure if you incur debts, determine for yourself first what reasonable monthly payment you can afford without any pain, and then stick to this figure. Remember that even if the creditor is ready to give you more money, then you are not obliged to accept them at all. Brokers’ salaries also depend on the length of the contract. Under the contract for a period of 5 years, the broker receives two to three times more than the equivalent for a period of 1 year.
If you are interested in a shorter period, and your broker offers a longer one, ask him why. Listen to your inner voice. It is very important not to experience discomfort from the advice of a broker and to know that he can be trusted, that he acts entirely in your interests. And the last. Although most lenders pay comparable fees for identical contracts, some of them pay higher fees than others. Sometimes a lender (usually not a bank, but another alternative financial institution) offers a higher payment to a broker in order to capture market share. If your broker offers you a mortgage from a lender, which you have never heard of, do not hesitate to ask why. You are recommended to take a loan from this lender. It is possible that this is really the best option. Before you sign a contract, do not hesitate: ask questions, specify incomprehensible places, enter the details and be sure that you fully understand all the explanations of your broker.
In addition to the initial payment, which should be at least 5% (depending on your credit history and solvency, the bank may require 20% and even 35%), you must show the bank that you have enough funds for “Lossing cost” (closing the deal) These are your costs at the time of the purchase of the property. These include: Land Transfer Tax (a tax that the state charges during the transfer of property from one owner to another), lawyer fees, and other, not so significant costs. One of such costs may be property tax (property tax), if taxes have already been paid by the previous owner, this amount must be returned. The bank believes that closing services cost approximately 1.5% of the value of the house and therefore requires the buyer to show that he has such an amount at the time of the transaction. By the way, in order to confirm that these funds are own, and not borrowed, the buyer must provide confirmation that the money is in the accounts for at least 3 months.