Mortgage Brokers are independently trained professionals licensed to represent and provide you with the best advice for your mortgage needs
Hiring a mortgage broker should be one of the most important parts of the home buying process. If you don’t know about the role that mortgage brokers play in the process of getting a mortgage, you could be leaving thousands of dollars on the table. Here are several reasons why you should use a mortgage broker:
Rate Advantages – With the economy and real estate mortgage the way it is, you will likely find that brokers and banks will have similar rates. However brokers have access to special promotional rates from time to time that banks may not offer. A broker will also be able to educate you on alternate rate products that may work better for you. In addition, many lenders’ rates and mortgages can only be accessed through a mortgage broker. Brokers negotiate on behalf of the buyer, as well as having relationships with these lenders, and the banks. Ignoring these lenders and choosing to get a mortgage with a bank can mean not getting the best mortgage for your needs and ultimately, costing the buyer thousands more over the life of their mortgage.
Customization – A mortgage broker is able to better tailor a mortgage product to your specific needs, whether that be working with a lender who is more flexible when it comes to self-employed income or one who has more flexible prepayment terms. Because mortgage brokers have access to more lenders, they’re better able to find a lender and a mortgage based on your specific needs and financial situation in order to get you the mortgage that fits your needs.
Works for you – A mortgage broker is on your side. There are a lot of “moving parts” when purchasing a home, it is important to have someone who is working towards your best interest to ensure you obtain the financing to suit your situation.
Free to you – Mortgage brokers operate on commission and are paid by the lenders who ultimately grant you your mortgage. But that doesn’t mean that all brokers are money-hungry grubbers who ignore your particular needs. Brokers depend on referrals in order to get business, so it’s in their best interest to serve you as best they can. When interviewing a mortgage broker, ask about their fee structure and how they’re compensated to make sure you’re comfortable with it. There usually isn’t an out-of-pocket cost to you.
Experience – Brokers have seen many different clients in varying financial situations. When thinking about how your life may change over the life of your mortgage term, they’ll be able to provide you with options and scenarios that had never crossed your mind and account for them, potentially saving you thousands in the process over the life of your mortgage.
Convenience – You work 50 hours a week, maybe you have a small child, and you still have to remember to take out the dog. How on earth can you carve out some time to head into a bank branch (during bank hours) and talk to a mortgage specialist, or shop around for the best rate? A mortgage broker does all this for you and more. They are able to work around your schedule, you can take as much time as you need to ask questions and have the opportunity to develop a real relationship with your broker, one in which you’re much more comfortable with the financial implications of the mortgage choices presented. Many brokers will also answer phone calls, emails, and text messages “after hours.”