Buying a Home? 4 Reasons to Always Work With a Mortgage Broker
What is a Mortgage?
A mortgage is a loan that is secured by real property. A financial institution lends the borrower money to purchase a home, on the condition that if the loan is not paid back, the property will become the possession of the lender. Because homes cost hundreds of thousands of dollars, which most people do not have just lying around, a mortgage is almost always used to purchases a home.
Where Can I Get a Mortgage?
Most people are well aware that banks offer mortgages. However, it is a common misconception that banks are the only place to get a mortgage. In fact, getting a mortgage from your bank may not be the wisest financial decision you could make, because they only have access to their own mortgage products. Because there are no one size fits all mortgages, your may offer you a mortgage that doesn’t really suit you (because it is the only one they have available) and they don’t want to lose you as a customer.
The best way to go about getting a mortgage is to work with a mortgage broker. While a mortgage broker does give you access to multiple mortgage products, they have even more benefits than that. Finding a mortgage broker to work with is just as easy (if not easier) than working with your bank to get a mortgage. Whether you need a mortgage broker in Toronto or a mortgage broker in Vancouver, an expert in your city is extremely easy to find online.
Top 4 Reasons to Work with a Mortgage Broker
1. Many Products to Choose From
As mentioned above, compared to your local bank branch, a mortgage broker has LOTS of options for you to choose from. A broker works with a large network of lenders who all offer different financial products. After learning about your unique financial situation your mortgage broker will hand select an option that best suits your needs.
2. Better Rates
Some of the lenders that mortgage brokers work with are extremely competitive and are able to offer lower rates by cutting some of their own costs like not having a physical office front, and only working with mortgage brokers. These lenders aren’t even accessible at the consumer level, so working with a broker is the only way to access their amazing deals.
3. The Process is Easy
Anyone who has ever gotten a mortgage before will tell you that there are a lot of finicky details, and specific paperwork that needs to be taken care of. A benefit of working with a broker is that they take care of all the documents and paperwork on your behalf. They request the required documents from you upfront, and manage the entire process with the lender for you.
4. No Charge!
The last, and possibly the best benefit of working with a mortgage broker is that there is no charge! Because a mortgage broker is such a valuable resource, a lot of people assume that their services are very expensive, but this is not the case! Although a mortgage broker work directly for your best interest, you don’t need to pay them. They get paid by the lender, but only once your mortgage is approved and funded!