What is a Mortgage Broker?
Mortgage brokers are the middleman between lenders and homeowners. Their main goal is to work with multiple banks to find lenders that have competitive interest rates that are suited to your needs. Mortgage brokers have a group of lenders that work with them, which helps make your life easier.
Also, mortgage brokers are regulated and licensed financial professionals. They do all of the important work such as verifying your employment and income, pulling out your credit history, and gathering your documents.
Once you find a lender or loan that works for you, the mortgage broker will contact the closing agent, real estate agent, and bank to make sure that the transaction runs smoothly.
Choosing a Mortgage Broker
The best way to find a broker is through asking family and friends for referrals. But, make sure that they have worked with the broker before personally.
You should learn everything you can about the broker’s communication style, services, and their knowledge and how they approach their clients. Reputation speaks volumes.
Another option is to talk to your real estate agent, and request they refer you to a mortgage broker suitable for your current deal. Ask them for the names of some brokers they’ve previously worked with, their strengths, and weaknesses.
Many real estate teams will offer you an in-house mortgage broker due to the frequent usage of their services, but you aren’t obligated to work with that individual or company.
Will it Cost More to Hire a Mortgage Broker?
Most mortgage brokers will offer you competitive rates that are at the same rate or better than banks. So you should consider using a mortgage broker if you’re looking for financing. They can shop for multiple lenders in one setting so they can get the best pricing towards your budget.
But this depends on what mortgage broker you choose and whether another broker can do more for your specific loan scenario. For instance, a broker who might have access to good refinance rates due to pricing by a wholesale partner.
What Kinds of Mortgages Are Available?
Mortgage brokers can provide all types of loans such as conventional loans, fixed rate mortgage, high-ratio, and everything else in between, which depends on the lending partners they are approved to work with.
When all of the data is presented, your mortgage broker will send a loan to the lenders in order to receive approval. This will occur with your bank and your broker will tell you the outcome once the transaction is completed.
Throughout the loan process, your mortgage broker will communicate with both the borrower and the bank so that everything occurs smoothly.
Can Mortgage Brokers Help Me Save Money?
Yes, you can save a lot of money using mortgage brokers for a few reasons. Mortgage brokers have different forms of mortgage offers compared to using a bank. And they have exclusive access to lenders with more flexibility than local lending companies.
Based on a Bank of Canada report, negotiation skills and shopping around are crucial to getting the best mortgage deals. It also stated that borrowers with mortgage brokers tend to pay less in rates and fees.
By utilizing a mortgage broker in Winnipeg you’ll be assured a smoother transaction process and you won’t have to deal with the frustration of the banking institution.
So think about getting a mortgage broker in Canada, as it will help make your purchasing efforts easier than you thought possible. And above all, do your due diligence before accepting any type of loan offer.