To put it simply, yes, you should work with a mortgage broker. There are many benefits to working with one that we will highlight below, and we aren’t saying that just because we’re mortgage brokers. At the end of the day, we’re here to make your life easier. Below, you’ll find four reasons why you should work with a mortgage broker.
What Does A Mortgage Broker Do?
What exactly does a broker do? There are several services offered that go beyond mortgages. First, a broker does not lend you money. Instead, they help find you a lender at the best possible rate. Think of them as a middle person between you and potential lenders. On the flip side, a mortgage lender is the one who lends you money. These lenders include banks, credit unions, mortgage companies, or loan companies.
- Mortgage Pre-Approval Assistance
- Reverse Mortgages
- HELOC (Home Equity Line of Credit)
- Assisting Newcomers To Canada
- Investment, Second Or Vacation Property Assistance
- Helping Self-Employed & Business Owners
When Should I Work With One?
The most obvious time is when you’re applying for a mortgage. When applying for anything, you can expect a lot of mundane and confusing paperwork to follow. Doing all that prep work only to be denied or told it’s wrong can be extremely frustrating.
Therefore, most people turn to a broker when applying for a mortgage. However, as we mentioned above, there are many other instances where a broker can be helpful.
Everyone has a unique situation. The process for getting your first mortgage will look different than your second. Additionally, there are many opportunities to apply for incentives. For example, you could qualify for local or federally backed incentives. You don’t want to skim over any details when applying for a mortgage, and your broker can help you identify all the incentives you’re eligible for.
Questions To Ask
Just like finding the right lender, it’s important to find the right broker. Be sure they’re qualified and experienced. Don’t hesitate to ask questions before working with them. Ask what their application process looks like and which lenders they work with. A good broker wants to find you the best rate based on your situation. They will take the time to get to know you and your financial situation.
Mortgage brokers can help you save time in more ways than one. First, you won’t need to shop around yourself. Second, they have connections with many different lenders, meaning you’ll get the best rate. Another way they will save you time is with the paperwork. Applying for a mortgage requires a lot of paperwork and verification, which your broker will help you with.
Some documents required for a pre-approval include:
• Signed Credit Consent form so that we can obtain your Credit Report
• A list of your assets
• Confirmation of Employment
• Confirmation of the Down Payment
For many, this list can look overwhelming. However, when you have a broker on your side, they’ll be sure to help keep you on the right track.
No Extra Costs
Mortgage brokers work with lenders, which means there is typically no fee charged to you. Depending on the situation, there could be a broker lender fee. Sometimes certain lenders charge a fee. If this is the case, you will be notified ahead of time.
Get A Lower Mortgage Rate
As mentioned earlier, brokers know what’s available. Therefore, they can find rates from lenders you otherwise wouldn’t. This can save a lot of time for you as well. Instead of researching and going to multiple lenders yourself, they can do it in a fraction of the time. When you can compare multiple lenders at once, the decision-making process will be much faster and easier.
A good broker provides unbiased options and advice. They understand the difference a lower rate will be in the long run. Having a lower rate means lower payments. Therefore, you can confidently call yourself a homeowner and reach financial freedom sooner when you choose to work with a mortgage broker.
They can also provide advice on the likelihood of approval. Mortgages have different rates and eligibility requirements. This is why getting a mortgage pre-approval is important. A mortgage pre-approval shows how much you could qualify for. You will then see the maximum mortgage amount you could get. We recommend doing this early so you know how much you can afford. When applying for pre-approval, be sure to ask how long you are guaranteed that rate. A trusted broker won’t waste your time with mortgages or lenders that aren’t right for you.
Applying for a mortgage takes time. As we mentioned above, a broker can save you time. You could also save a lot of money. You can compare multiple options at once rather than finding them yourself. Whether you’re a first-time homebuyer or looking at a vacation property, a mortgage broker can be there for you. Once you gather the necessary documents, they can get the ball rolling.