If you do not know what a mortgage broker does, you are not alone. The Mortgage Professionals Association of Canada took a survey and found that 39 percent of people buying their first home did not know much about what a mortgage broker does and how important they can be to the process of buying a home. When homebuyers are informed about the services of a broker, they are much more likely to seek one out for the mortgage process. When homeowners understand only a little about brokers, only 36 percent are likely to use one, but that number increases to 59 percent and more with the more information they receive. If you don’t know about mortgage lender services, you could be spending thousands more than is necessary. Following is a list of 7 reasons to get a mortgage broker when you are buying a home.
1. A mortgage broker can find lower rates on mortgages.
This is because they have connections to a large number of lenders and rates. They know about loans and rates that credit unions and banks do not advertise to the world.
2. A mortgage broker does not just know about the lowest rates and lenders; they have accessibility to them.
A broker can find a lender and negotiate terms for home buyers. The most experienced mortgage broker has already formed relationships with lenders and banks. When you don’t use a mortgage lender, you risk interest rates that are higher than they have to be and more severe penalties for breaking a mortgage. Not going with a broker can mean paying out thousands more than you would have to otherwise pay.
3. A mortgage broker can customize the mortgage according to your needs.
For example, a Vancouver mortgage broker can find lenders that have flexibility with terms of prepayment and the sensitivities involved with self-employment income. Their access to a wider variety of lenders means they are more likely to find a mortgage that suits your situation and has the lowest rates on current mortgages.
4. A mortgage broker is your ally.
You can get information from realtors, but an agent can explain it all to you and help you understand the process. There is no question that a bank is more interested in selling their product than they are in helping you customize the perfect plan for your needs. Banks are not necessarily bad to deal with, but a mortgage broker is less interested in selling a specific product and is there to help you with your unique needs.
5. A mortgage broker will not charge you for their services.
Lenders pay them a commission, but that does not mean the broker will ignore your needs. Brokers work to get you the deal you need because they depend on the referrals of their clients. Feel comfortable in asking prospective mortgage brokers about their compensation. Some critics argue that the cost of commission is passed on to the borrower through the lender. This may be true, but if you are receiving lower interest rates, you will still come out on top.
6. A mortgage broker has experience.
They have dealt with numerous clients in various situations. They know how to consider how life changes and how it can affect mortgage terms. They can explain possible situations that may occur and offer up options for them before you have thought about it yourself. This has the potential to save you thousands of dollars.
7. A mortgage broker adds convenience to home buying.
When you work long hours and have small children and other responsibilities, it can be hard to make and keep appointments with the specialist at a bank. A mortgage broker comes to you at your convenience and explains all of your options, essentially doing all the homework for you. You can ask the questions you want to ask and get to know your broker, which will make you feel more comfortable with the choices they present to you. It is a good idea to build a trustworthy relationship with your agent. Your broker should want to be there for you. Many mortgage lenders make it a point to respond to your emails, texts, and calls, even when the business day is done.
Take the time to find the best broker for your needs. Look up the brokers and look at all the reviews you can find. Ask family, friends, and co-workers for recommendations and ask a potential broker for a list of references. It is a good idea to research mortgage products so you can ask your broker to explain what they are and how they might be used in your situation.
There is no shortage of mortgage brokers. You will find them all over Canada. It is wise to start looking and interviewing brokers before you begin looking for the home you want to buy. When you are looking for a home, you want to be confident about taking out a loan. With a broker, you can enter into the search, knowing you are getting the best mortgage rates with options that are best suited for you.
In the past, a person who wanted to borrow money went to a nearby bank when it was time to choose a suitable mortgage lender. She would tie her horse up and sashay into the lobby of the bank. The business of lending the money was concluded with a handshake from the bank officer who had checked her financial position and made a decision regarding her ability to pay the loan off successfully.
These days it seems there are banks on every block. You can still meet with a loan officer in person, but that is not a necessity. Loan applications can be made online in many cases. When it is time for the mortgage documents to be signed, a notary may come to visit you in your home or at work. You can get it all done without leaving home.
Get A Mortgage Lender Who Has Good Reviews
If you make your mortgage application online, you no longer have to deal with a bank simply because it is near your home. You don’t have to apply to a particular bank simply because of loyalty if you are one applicant out of millions. The rate of interest on the mortgage or even the cost of the loan is also not the main factor. These days mortgage lenders are very competitive, and they are probably all going to make you a similar offer.
The main thing you need to look for in a mortgage broker is the one who offers the best service to customers. Look for excellent reviews by previous customers when you are shopping for a mortgage lender.
Your Agent Can Help You Find the Best Mortgage Broker
Probably the best person to help you find the ideal mortgage broker is your real estate agent. The real estate agent will be knowledgeable about which mortgage lenders will deliver the goods and which ones do not. Good performance by the mortgage broker is necessary when conducting a real estate transaction. When real estate transactions fail to close on time, it is usually because the lender has been unable to perform.
What To Look For In a Mortgage Lender
The ideal mortgage lender will take responsibility for your mortgage personally. They will be sure to keep in close communication with you, so you receive messages in a timely manner. Important documents will be delivered quickly. They can foresee complications which might arise, and they will take steps proactively to avoid problems. They oversee the entire process for you, and they will meet important deadlines on time.
Nearly every service business these days has an online presence. Often, a third-party website will allow anybody to post a review online, so you can not always tell if a review has been posted by a troll or a person with a vendetta. However, a lot of reviews posted online actually are legitimate. They come from real customers who have used the service. You can check the reputation of your mortgage broker online to determine the level of satisfaction from previous customers.
Even when companies offer a very streamlined mortgage lending process, this is still a business where personal touch matters. It is not only a question of the numbers. The main focus has to be on keeping customers happy.
Location Is Important
Although your mortgage lender does not need to live close to you, you should ensure that the mortgage broker is located in the same time zone.
There can be occasions when tight deadlines must be met, and if you are closing a sale in the state of California, it will be difficult to coordinate schedules if your lender is located in the state of New York. If you are dealing with a cut off time of 11:00 a.m., you might not be able to reach the agent on time. If the lender in New York is finished for the day at 5:00 p.m., you will not be able to contact them from Los Angeles after 2:00 p.m.
Listing Agents May Complain
Online mortgage lenders like to say they offer fast communication and turnaround times, but they face rejection from listing agents frequently. This is often true if there are multiple offers from buyers for a particular home.
A listing agent will often tell the seller to pick the buyer with the best qualifications. An out-of-area broker will carry less weight that a local mortgage lender who is well known. It is not fair, but on occasion, a buyer will lose a dream home because the non-local mortgage broker is not known to the listing agent.
Another possible drawback is how the appraiser will be chosen by the company. Is the appraiser familiar with the area where you wish to buy a property?
Borrowers can have bad experiences with the selection of an appraiser. An appraiser from a different city will not be very accurate appraising a home in an area they don’t know very well. Your appraisal may end up being too low, and thus cause problems that could have been avoided.
As Craig passes his 18-year anniversary in the mortgage industry, the significance of loving what you do continues to be a vital component for his success. Tighter lending standards, tougher disclosure requirements and extensive appraisal restrictions are just a few of the seemingly never-ending changes that challenge mortgage professionals to stay in the game.
In addition to his passion for all things mortgage-related, dedicated and meticulous freelance writer.
All of his articles are “real life stories” that are straight-forward and easy to read. They capture his reader’s attention, and filled with SEO-rich content.
Craig has been writing for a number of top mortgage blog sites for several years now. Hire him to develop high-quality content for your business.
Many mortgage companies are no longer in the business. While there are still plenty of options when it comes to choosing a mortgage company the field has definitely narrowed, especially as it relates to industry veterans. That’s good news for people like Craig that have been in the business for many years.
Craig is passionate about establishing personal, life-long relationships with his clients. Whether you’re a first-time homebuyer, a homeowner moving up to your next dream home, an existing homeowner refinancing your current loan, a real estate professional, a builder, or another business professional, Craig is committed to providing the highest level of service and professionalism.
Craig carefully listens to his client’s needs, determining their short and long term goals, and then create a custom-tailored loan to meet those goals. With a decade and a half of experience, Craig prides himself in being an educator for his clients so that together they can choose the right, personalized loan program.
Craig is committed to delivering a fast, easy and hassle-free home loan experience while maximizing your financial resources.
In addition to being his client’s Lender for Life, Craig enjoys growing his business with the help of his marketing, recruiting and training background.
Helping lead and develop others while originating mortgage loans; Craig has found his career calling.
AO Photo 3bCraig takes immense pride in what he does and in calling himself a Professional. That means he knows what he knows and equally, if not more important, he knows what he doesn’t know. There is a difference and Craig understands the difference between the two. When Craig knows the answer, he’ll tell you. When he doesn’t know, he’ll go find the right answer. This way you can always have confidence that you’re receiving the best answers possible.