A mortgage broker is an intermediary who brings people seeking to buy homes with the most suitable lender. They are licensed by the province and specialize in mortgage lending. They do not work for the lending institutions. Instead a mortgage broker works on behalf of the home buyer.
Mortgage brokers are not paid by the potential home owner, but receive a set fee or commission percentage from the lender when the mortgage is approved by the lender. They can also provide crucial advice and counselling to the first time home buyer.
Mortgage brokers have access to the latest mortgage information from over dozens of lenders which includes banks, credit unions, trust companies and private lenders. The information they have is either provided by the lenders or accessed daily with the most current mortgage rates and terms. They have all the most current information on available mortgage packages.
Benefits of Using a Mortgage Broker
Since brokers have all the most current information at their fingertips, they can essentially save potential homeowners time and money.
They save you time because you don’t have to do all the research to find yourself the best deal. A Calgary mortgage broker will guide you in gathering all the paperwork you will need to apply for a mortgage at any lender. This includes property appraisal, credit reports, employment verification and disclosure on your assets.
Once you’ve chosen a lender, they will submit all the paperwork on your behalf. If you were to do this on your own, you would have repeat the same process over and over again which is a lot more time consuming.
A mortgage broker can offer you advice and counselling if you are new to the mortgage process and can answer all your questions. They guide you through the process with the lender you eventually choose.
If your credit rating is less than stellar, they can even help you find lenders that suit your current financial situation. They can even offer advice on how you can improve your credit rating before submitting an application to a lender.
If you don’t have the required amount of money needed for a down payment to qualify for a mortgage they can also help direct you to lenders that offer competitive rates.
A mortgage broker saves you money simply because they can find the best rates and terms for your individual mortgage needs. They can literally save a home buyer thousands of dollars so you can get the best deal possible.
If you have an existing mortgage that is ending, they can also provide you with the same valuable advice and information for a renewal. They perform the same process and help you provide all the required documentation.
Remember to always ask questions about the mortgage broker’s experience and find out how long they have been in business. Also, it is equally vital that you ask key questions about the lenders they are suggesting.
Make sure you understand all the ramifications of the mortgage package that is being considered. Finally, you don’t have to opt for the recommendation and it might be advantageous to consider alternatives and different packages that might be more suitable to your circumstances.
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