Should I talk to a broker?
When buying a home, there are many things weighing on your mind. The process of securing a mortgage is likely the one weighing most heavily on your mind. Where do you go? How much time should you devote to researching your options? Do you need a pre-qualification? A pre-approval? What’s the difference anyway? And do you really have an understanding of your finances? A licensed mortgage broker might be the solution to the confusion you are facing. In this post, we talk a bit more about why you should talk to a broker if you’re buying a new home.
What exactly is a mortgage broker?
A mortgage broker is a professional whose job is to find the best mortgage product for you! They work with a variety of lenders, from banks and credit unions to private lenders. By having multiple connections in the field, they typically have a client-centred approach. Their loyalty will be to you rather than to one specific financial institution.
How can a mortgage broker help?
From clarifying terminology and helping you understand your financial situation to finding the best lender for you, a mortgage broker can help you in many ways. They’re an expert in their field and can help you navigate your way through the mortgage application process.
A mortgage broker works with you and will ensure you have a thorough understanding of every step in the mortgage process. Using a mortgage broker will eliminate much of the headache-inducing work that goes into ensuring you find the best mortgage. They also have access to lenders that are not open to the public. This means better deals for you that you would otherwise not be privy to! This is huge, as not only are you empowered with understanding, but you are also empowered by choice.
If you’re debating on seeing a mortgage broker, you can shop around to find the perfect one without paying for it! In Canada, mortgage brokers are paid by the lenders, not the borrowers. Even once you find the right broker for you, you can work through your situation, and be as involved in the process as you want, without paying a single discontinued penny!
How do I go about finding a mortgage broker?
As with any financial decision, you want to handle the choice of broker with care. The good news is, we’re living in an age where information is relatively easy to come by. A simple Google search of mortgage brokers in your area and a read through their websites should do the trick. Once you’ve done that, it would be good to see if you can find reviews of the brokers online. This can give you a more complete picture before you narrow down your choices.
If you know anyone personally who’s gone through the process of securing a mortgage through a broker, it would also be a good idea to ask them about their experiences with mortgage brokers. Between your research online and the people you’ve spoken to, you should be able to narrow it down. Once you’ve narrowed it down to a manageable number, it’s time to start seeing and interviewing mortgage brokers!
That sounds pretty easy. What’s the catch?
Working with a mortgage broker can be empowering and will make the whole mortgage application process easier, but it does not eliminate the work you need to do. A mortgage broker needs to have an idea of your finances to make sense of them. This means you will need things such as proof of employment, bank statements, and other proof of liabilities and assets. This will prove your ability to cover a down payment on a property, and give your broker an idea of what you can afford monthly, and thus, the size of the mortgage you can handle.
This means your broker will need access to sensitive information. There’s nothing wrong if you’re uncomfortable sharing such information with a stranger. Think of a broker a bit like dating – do your research, and interview the brokers you contact.
Ask lots of questions!
Good questions to ask the mortgage broker are:
How long have you been working as a mortgage broker in my area? What are your qualifications? How available are you for questions or complications? Can you provide any references? These questions should give you an idea of what working with the broker will be like, and will provide you with the information you need to trust them.
The choice of using a mortgage broker is a solid decision for most homebuyers. They empower you with choice and information. A client-centred approach allows you and not the bottom line to be top priority. And once again, the services of a mortgage broker in Canada are free for the borrower! So, why wait?!
If you are a homeowner looking for options, or you’re planning on buying a home in the future, give me a call at (705) 333-4338 or get in touch with me here!