1) Personal recommendations from relatives and friends are one of the best ways in finding a broker who is honest, reliable and competent. So, better ask them who helped them in acquiring a loan.
2) Dishonest brokers capitalize on unfamiliarity about the entire loan process. So, educate yourself first about loans and home loans specifically. Conduct a thorough research. You may also ask an expert about loans.
3) Pick a broker who is working for a home loan brokerage firm. If, in case, an unexpected thing happens and the current broker will no longer be available to continue working on your home loan, there should be someone to cover up for his or her unavailability.
4) Also, brokers working for a firm are commonly licensed real estate brokers. This is the most basic requirement when dealing with a broker.
5) Check your credit status. Some banks in the Philippines require that you have a good credit standing before you can avail a home loan. Certainly, the banks want to know that you have the capacity to pay back the home loan in its entire tenure. If you can, pay any outstanding credit first before attempting to secure a mortgage loan.
6) Check your cash on bank. Is it just enough to pay for the down payment? If it is, then you need to save some more. There are many costs involved in securing a loan, not just the down payment and monthly amortization. There are service and professional fees that you have to pay. Not to mention, the money you need when you move in your new home. Also, there are banks that require you have a particular amount of money on your account to obtain approval and complete the transaction.
7) Keep all the copy of the documents, receipts, etc. especially those that the broker handed you. Well-kept copies of these will serve as your reference in case something went wrong with the process. Remember that mortgage loan involves your hard-earned money that you should protect no matter what.
8) Delay your plan to avail a car loan to purchase a [luxury] car. If you are securing a home loan, a car loan can be detrimental in getting approved. The process reduces the amount of the mortgage loan that can be made available for you, if the loan will be approved. If you own a car, much better because you can use this as a collateral if needs be. The 3 Cs of mortgage loan are capacity (to pay that is), capital and collateral. Some banks require the collateral.
9) Determine how long you expect to live in the house and lot in Bulacan that you want, for instance. Need to stress this despite knowing that you expect to live there for the rest of your life. You should be buying a property if you expect to live in that property for more than 5 years.
10) Keep track of the progress of the home loan process. Make sure that your broker is calling you to report regarding developments.
All the points above ensures to get you a mortgage loan through a broker. Even if you are a first-time buyer, the loan process must be a good experience for you. In fact, it should be because you are a first-time buyer, right? Prepare yourself physically, emotionally and financially before you embark on the process though.
Image credit: FearlessHomebuyer.com