Getting a mortgage can be quite a cumbersome task for a layman. A person who is not experienced and is new in the world of loans will find it very tough to convince the bank and get the mortgage. Here such a person must get help from a mortgage broker. A mortgage broker like Canadian Mortgage Services, can simplify the whole procedure for a person.
What Is A Mortgage Broker?
A mortgage broker is a licensed and regulated financial professional who acts as an intermediary between borrowers and lenders. Brokers look for loans that suit you the best and then compare the rates and terms with the other related options. Mortgage brokers can offer multiple mortgage products from a network of lenders and provide exposure to a limitless range of products as compared to the loan officer, who is restricted to their own bank’s offerings.
How A Mortgage Broker Works
Suppose, you want to buy a house and you don’t have enough banking relationships or aren’t satisfied with the rate offered by your current mortgage lender. You will look for mortgage broker services. A mortgage broker works based on their large social network. They know various lenders and their relevant payment conditions. Therefore, finding the most suitable loan for you will be a more simple task for them to do. This will save you a large amount of time. Rather than searching out numerous lenders with their complicated loan offers, you will take the services of a broker who determines how much loan you’re likely to qualify for and handles all of the legwork for you. Additionally, brokers then compile the necessary documentation and shepherd them through the application and underwriting process.
How Is Availing Mortgage Broker Services Better For You?
- A mortgage broker is experienced and has vast connections with lenders
- Lenders may offer them discount offers, most likely when the broker and the lender have a mutual deal.
- A broker can save you from falling into the trap of troublesome payment terms and conditions.
- A broker can waive you some fees(application fees, appraisal fees, etc. )
- They will prepare the application materials and will guide the borrower through underwriting and closing.
- Having access to a wider range of mortgage products, they will be able to get more favorable interest rates.
However, sometimes a broker’s interests may not be aligned with those of yours. Even in such a scenario, they will work in your favor because they will never risk their reputation. Your bad feedback about their work can ruin their career.
Mortgage Broker Costs
There are two basic ways mortgage brokers may be compensated: through fees paid by borrowers or commissions paid by lenders. The exact amounts of these fees and commissions vary, but generally, brokers can earn up to 2.75% of the total loan amount, depending on who’s paying.
Consulting a person who is more experienced than you in a field, is always a prudent act to do. However, relying on them blindly is not suggested. You should beware of the current mortgage rates and the related policies. Hire a broker, who is either referred to you or the one who belongs to a well-known company with a trustworthy reputation. Hiring such a mortgage broker will not only save you time but also will help you get the most suitable mortgage for you.