Why You Should Use a Mortgage Broker
Who should use a mortgage broker? Each person!
What is a mortgage broker?
There are still many misunderstandings and misunderstandings out there when it comes to mortgage brokers and what they do.
A mortgage broker is a professional licensed with the Alberta Real Estate Board (RECA). To get this credential, a mortgage broker is needed to meet professional education and behavior requirements, and complete background security checks.
How is a mortgage broker different from the bank?
Mortgage brokers should not be compared to your local financial institution. Each objectives and functions are very different. An independent Mortgage broker is only independent - meaning they have no connection with one lender. That means their job to offer unbiased suggestions.
Basically, they are experts who are trained and licensed in the mortgage financing business. Their main function is to work for you - not a lender! They shop for a mortgage market for the best level, time, and products for consumers, but they also offer more than this providing debt consolidation solutions and credit recovery strategies.
The best of all, mortgages through brokers operate the same way as you get through your local financing institution. Online banking, accelerated payments, and pre-payment options are all available. Easy and hassle free.
Myth # 1: Interest rates through high mortgage brokers.
Truth: The lowest industrial interest rate is only available through a mortgage broker.
Why do I have to use an independent mortgage broker?
It pays to work with brokers that will represent your interests and make sure the mortgage you get is the most suitable for your needs. The mortgage broker has direct access to every major lender in Canada. Whether it's a bank charter, trust or insurance company, or a personal lender, each offering different product levels and features. The most important thing for you to know is that many of these lenders can only be accessed through a mortgage broker. You will want to make sure you get the right one for you.
After you decide where to register, get mortgage approvals often depend on how your application is served and who is sent. The mortgage broker is trained to present your application so that it will get direct and positive results. The time of completion for brokers to get a response from the lender and secure your financing can only be in 1-3 days, depending on the workload of the lender.
Who pays a mortgage broker?
Mortgage brokers paid "search fees" for housing mortgages from lenders as such an agreement has been completed and funded. Therefore, most brokers do not charge clients for their services. To ensure no misunderstanding, make sure you request your mortgage broker in advance if the lender will pay their fees.
Myth # 2: A mortgage lender only deals with people who have bruise credit
Truth: Do you have good credit or bad credit, a broker can be a valuable asset.
Independent statistics tell the story ... the use of mortgage brokers continues to grow in leaps and limits every year because people get a better understanding of what they do.
If you are considering using a broker, ask your neighbors or friends they know or deal with in the past. Get to know the broker you have chosen. Are they affiliated with lenders? How did they find a mortgage? If you are a busy person, ask whether they will come to your office or home to talk about the bid of lenders. Most importantly, ask to review your credit bureau with a broker.