23 Aug Guide to working with a mortgage broker
People often wonder why they should consider working with a mortgage broker when banks can do mortgages as well. We certainly get asked this question a lot. The truth is: there is a BIG difference between the two. Similar to the “house hunting process” where you see several homes to choose that one you like the most or that best fits your needs, the mortgage broker will provide you with many options that will allow them to customize your mortgage to your lifestyle.
Mortgage brokers are the professionals that match your needs with a home loan from a selection of lenders.Â They are independent specialists with a license to represent you and to provide you with the best tips for your financing tips. Independent from major banks, brokers can provide an assortment of mortgage products to their clients from both A, B and private lenders.
Mortgage brokers get paid from the lenders. So, their service is offered to you without charge. What else can you ask for when you have better rates, personalized service, flexibility and products at no cost to you. Some will say that the fee is built into the rate, but this is simply not true. It costs the banks approximately 40% less to generate a mortgage through a broker than a branch, as there is no overhead to pay if the bank doesn’t get a client’s business. Instead, the mortgage broker bears the entire cost of the day-to-day business activity.
Your mortgage broker will also take a credit check as part of the application. Unlike a bank where your credit score may be pulled multiple times, a mortgage broker will take your score once, which will be valid for a 30-day window for the same type of loan.
To know more about this, consult Carmen Costa’s book “The Reality of Mortgages”, which will be launched next month.