What Is A Mortgage Broker, And Do I Need One?

If you’re ready to fulfill your dream of buying your first dream home, then chances are you’re going to need the help of a mortgage broker to make it happen. But what is a mortgage broker exactly and what can they do for you?

For every home buyer’s dream that turned to reality, there is a mortgage broker who helped make it possible. A mortgage broker is a licensed middleman – a person who serves as a bridge between a potential homeowner and a mortgage provider.

As a middleman, a mortgage broker evaluates the financial capacity of a home buyer. He looks for top quality mortgage products and handles all mortgage transactions for his clients. A broker gathers the necessary documents to apply for a mortgage and then facilitates the underwriting and approval process. He ensures that the mortgage transactions are valid and complete.

The Mortgage Process

When to See A Mortgage Broker

Now that you know what a mortgage broker is, you also need to determine when the right time is to consult with one. If you fall in any one of the categories below, you might need to see a broker:

a) You are a first-time home buyer.
b) You recently moved into a new area.
c) You have very limited time left to purchase a house.
d) You are not comfortable with the idea of shopping for lenders.
e) You have a weak credit score.
f) You want access to exclusive rates and deals from banks which are offered only to brokers.
g) You prefer to have an expert who provides you with an educated and confident analysis of the current housing market.
h) You need help in deciding on a financing structure that is advantageous for you in the long run.

Take the case of Maureen

Maureen is an interior design artist who moved to Toronto with her husband. After doing her research, she signed an agreement to buy a house. A bank approved her mortgage, and she was ready to make the deposit of her first mortgage. However, knowing that the bank was willing to lend her thousands of dollars, she was skeptical if she was getting the best offer.

While considering the offer, a friend suggested that she consult with a mortgage broker. Her friend recommended a broker whom she transacted with before. After talking to the broker, Maureen realized that the rates presented by the broker are better compared to the bank’s offer.

Though Maureen was initially unaware of the important role that a mortgage broker plays in home buying, she made the decision to close the deal for her new home through one when she realized the undeniable advantages.

Mortgage brokers are very convenient to work with. They have extensive networks of investors, property owners, and real estate companies as well as access to different properties, which they are willing to share with their clients. Just like in the abovementioned case of Maureen, mortgage brokers are committed to providing you housing options that match your requirements.

The Benefits of Working With A Professional Mortgage Broker

Licensed mortgage brokers are professionals who are intensively trained and knowledgeable at what they do. Most of them have a proven track record when it comes to handling mortgage transactions. Moreover, given their extensive experience in the housing industry, their network is just as vast.

Here are some of the advantages of availing the services of a broker:

Access to First Hand Information.
Working with a mortgage broker means gaining access to first-hand information in the market. Brokers are part of a broad community where members share valuable housing data. These details include real property values, new home releases, pricing, and among others.

Access to the Best Rates in the Housing Market.
Because mortgage brokers have access to multiple housing rates, even in the most exclusive markets, borrowers who tap their expertise widen their options.

Customize Your Mortgage Plans.
Brokers know investors, such as self-employed lenders or private organizations, that offer a suitable mortgage plan based on the requirements submitted by the borrower and his financial capacity. They can also negotiate flexible mortgage payment terms.

Convenience in Buying Your Dream Home.
Brokers can take care of your housing needs while you focus on more important things like building a family, starting a career, or retiring.

Confidence in Your Well-Informed Decision.
Research is vital to the decision-making process, especially when investing in property. With their robust experiences and extensive network, brokers in the housing sector are equipped to meet the needs and wants of a home buyer. Not only that, they are always ready and willing to meet potential homeowners to discuss their best options. Their expertise and experience in the industry will ensure that you arrive at a well-informed decision when closing a housing deal.

Factors to Consider When Choosing a Mortgage Broker

Not all mortgage brokers are the same. Some may be more equipped to meet your needs than others. Therefore, you need to consider the following:

License and Affiliation of a Mortgage Broker.

Consult only with a licensed broker who is officially registered as a member of Canada’s National Association of Professional Mortgage Brokers. These associations spread advocacy, share knowledge, and disseminate relevant information to mortgage clients.

Canadian Resident and Knowledge of the Locality. Your chosen licensed mortgage broker should be a resident of Canada and must be familiar with the housing market of the specific location where you intend to purchase a new home.

Mortgage Lender Portfolio. A comprehensive mortgage lender portfolio is proof of all the hard work the mortgage broker has put in. Moreover, access to as many lenders as possible means a broker has the means to help you find the right funding.

Recommendations. Word-of-mouth is a handy marketing tool because it means certain people have already transacted with a particular mortgage broker and they are overall pleased with his performance. Seek recommendations from family and friends, and check the broker’s online star ratings and reviews.

Integrity and Open Communication. All forms of investment involve money, effort, and time. A professional mortgage broker must be reliable and trustworthy to handle your investments. Likewise, these middlemen must maintain constant communication with lenders and borrowers alike.

It’s easy to get intimidated when big numbers come into the picture. But with Canadian Mortgages, Inc., whether it’s customizing a loan or looking for alternative housing options, interest rates, and mortgage schemes, the help that you need is readily available.