How does a Mortgage Broker Benefit you?
Posted by Brad Speniel | May 22, 2015 at 8:53 am
ESTIMATED READING TIME: 4 minutes
You know that you are ready to buy a home and you know that the first step is to make the big financial decision of where to finance your mortgage. Do you go to one of the big banks? Do you start looking online for the best rate you can find on your own?
The answer to both of those questions is a resounding “NO.” In all honesty, you don’t have the time, expertise or network to find the mortgage solution that best suits your situation. Your mortgage is likely the single biggest debt you will ever take on, and making the right decision is essential to your future finances. That’s why working with a mortgage broker who can shop over 50 lenders and knows what lenders are looking for – whether applying for your first mortgage or refinancing an existing one – is the solution you need to save you thousands of dollars.
A mortgage broker saves you money
First and foremost, the biggest advantage of working with a mortgage broker when buying a house is that it will save you money by finding you the option with the best rate, term, payment flexibility and pre-payment privileges to best meet your needs. Of course, the lower your rate, the less interest you will pay over the term of your mortgage, so it’s easy
to see the savings there.
However, you can also save over the life of your mortgage by making weekly or bi-weekly payments, or making periodic pre-payments and shortening the amortization period.
With access to over 50 lenders, your mortgage broker can find and secure lower rates than you could secure from your financial institution and also find other ways to save money that you may not even know about – after all, they are the experts. And the best part is that while your mortgage broker is working for you, it doesn’t cost you anything – they
are paid by the lender.
A mortgage broker saves you time
As mentioned above, your mortgage broker has access to over 50 lenders, which saves you from the laborious task of searching for the best solution for you. With a full-time job and a busy home life, you simply do not have the time to research and approach various lenders to find the best mortgage solution for you. You won’t even have access to
most of these 50 lenders.
When you work with a broker, you simply fill out one application that states your assets and liabilities and income and expenses. You should also discuss your situation and future needs and goals. Then based on your personal financial needs, he or she will build a mortgage strategy that meets those needs. Then using sophisticated software your broker
will shop over 50 lenders with hundreds of products to find who can provide you with the best rate and terms that match your strategy. All this can be done in 24 hours.
And obtaining a mortgage can be complicated, your broker knows exactly what information and documentation the lender requires and will help you get everything together making the process much easier for you. There is no need to shop around, do the comparisons, read the fine print, fill out paperwork or negotiate the deal yourself. That all takes time that you don’t have; your broker will do that for you.
A mortgage broker gives you peace of mind
Too many people just take the mortgage product and rate that their bank sells them. To get the right mortgage for you, the lender has to understand your personal needs and how you intend to pay back the mortgage funds. Then you want to develop a mortgage strategy that will meet those needs. Having the right mortgage product can save you thousands of dollars in future interest, penalties and stress.
You only need to complete one application and pull one credit bureau and we can shop over 50 lenders for you, something your bank can’t do. You will never get the best rate and terms if you limit yourself to only one bank.
A mortgage broker will represent you NOT the bank, they will explain all the legal conditions to you in plain English and help you through the document collection phase, making the process much easier and faster for you.