Taking out a mortgage can be a long and arduous process. When making a financial decision as large and important as buying a house, you want to make sure you’re getting the best deal. High mortgage rates and poor terms can wreak havoc on your finances, and the sometimes complicated process can be overwhelming for borrowers who are less than knowledgeable about the housing industry. Luckily there are professionals available to help guide you, ensuring a smooth process while helping you obtain the rate that fits your finances best.
A mortgage broker is an intermediary who brings borrowers and lenders together. Instead of dealing with the company that originates the mortgage and attempting to sift through the complex process yourself, brokers allow you to shop around for the best rates with an experienced professional advising you along the way.
Mortgage brokers have access to multiple lending institutions, giving them the ability to search the mortgage market for the best possible options. Since mortgage brokers only collect fees from the closing of a deal, you can rest easy knowing that their goal is to find you the right mortgage, not lead you on a wild goose chase.
Of course, like anything in life, it’s important to educate yourself. Finding the right mortgage broker will affect your bank account, so take the time to search and screen before settling on the broker of your choice.
First and foremost, you’ll want to make sure you’re dealing with a true professional. Most provincial governments require that Canadian mortgage brokerage companies have provincial licenses. Take the time to find out if your broker is properly accredited. You can also search online for reviews and information about the broker of your choice. Also, talk to family and friends for recommendations and advice.
Unless you’re a professional, the mortgage industry can be quite confusing. You want a mortgage broker who will take the time to explain the process to you, not keep you in the dark. Don’t be afraid to ask questions. The more you know, the better prepared you’ll be. Signing your name on the dotted line for a mortgage is big decision, so make sure you and your broker are communicating regularly and properly.
When deciding on a mortgage broker, it’s important to make sure they fit your specific needs. Brokers have networks of many different lenders, but by being upfront about what you’re looking for, you can make sure you find a broker with the type of lenders you need. For instance, if you have less-than-perfect credit, you’ll want a lender who has relationships with specialized lenders for people with poor credit. Brokers are supposed to make the process easier for you, but only if you’re using a broker that fits your needs.
Just as you want a broker who will be honest with you, it’s important that you’re fully truthful, as well. Fudging your financial history or inflating your income will make it that much harder for your broker to close a deal. It’s important to be upfront about your finances and what you can afford.
When it comes to mortgage brokers, the most important thing to look for is focus. You want a professional who will advocate for you, take your finances seriously and remain invested in your mortgage decision. Essentially, you want a mortgage broker who cares, not someone easily distracted just looking to make money on a fee. Remember, there’s no law that says you have to settle for the first broker you meet. Find someone who makes it clear that your mortgage is a priority.