What To Expect When Working With A Mortgage Broker
Author:
Karli Shih
Date: February 2, 2015
From first-time home buyers to seasoned real estate investors,
mortgage brokers are servicing a greater number of clients than ever
before. Fuelling this are the increasing complexities of mortgage
rules, lenders’ policies and product options, all of which can
affect the desirability of a given loan, and your ability to be
approved for it. Working with a mortgage broker can also be as
convenient and in some cases much more cost effective than working
with just one bank. Mortgage expertise can also vary depending on who
you work with.
Comparison Shopping
Most bank clients securing a mortgage through their bank do not
comparison shop, which eliminates the need for their bank to be as
competitive regarding the rate as they would be wooing a new client
away from a competitor. In addition, banks only represent their own products,
whereas a mortgage broker can compare the rates and terms of banks,
credit unions, trust companies and other mortgage providers in their
search for the best mortgage for your specific situation and goals.
Convenience
Making your mortgage payments from your usual bank account is
simple when your mortgage is with the same bank, but mortgage
payments can also easily be made with an automatic transfer from your
account to another lender as well.
Expertise
Mortgage brokers can service clients requiring private and
commercial financing, whereas many banks cannot assist in cases of
poor credit, certain self-employed clients or those who require
second mortgages. Negotiating with lenders to keep an application
with a bank vs. a more expensive private lender also falls into the
realm of a mortgage broker’s expertise.
Your account manager at your bank is not as specialized, as they
are expected to provide most of their bank’s many services. Though
some banks have mortgage specialists who do focus on mortgages, those
specialists are not licensed. Mortgage brokers undergo rigorous
testing and must follow strict re-licensing rules under the Mortgage Brokers Act.
Except in cases of more complicated financing, our services are
free as we are compensated by the lender who ultimately funds your
mortgage. Mortgage brokers work for you, not the bank, so they
keep your interests in mind first.
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