Tuesday, May 5, 2020

Using a Mortgage Broker to Obtain a Home Mortgage



Buying a home is an exciting time, and it is probably the biggest and most important investment you will ever make. There are many factors involved in buying a home, including obtaining a mortgage. Many home buyers will likely automatically turn to their banks or financial institutions to get a mortgage on the home they want to buy. What many of these people may not realize is that banks will likely only offer you one rate, with specific terms and conditions for your home loan. It would be beneficial for these home buyers to work with an independent mortgage broker who will almost guarantee a lower rate than the bank will quote them.

Why use a mortgage broker for your mortgage loan needs?

Mortgage brokers are trained experts in the field of home mortgages, equity loans and other financial products. They get to know the financial situation of their clients and try to find a mortgage that suits their specific and individual needs. Independent mortgage brokers are not employees of the main credit institutions, so they are not limited in the rates and products they can offer their clients.

Freelance mortgage professionals know many lenders across Canada with whom they have a relationship and deal with on a regular basis. You just need to complete an application, then your mortgage broker buys it from all lenders, to maximize your chances of getting mortgage financing. For this reason, they can often insure a mortgage package for hard-to-place mortgages that banks reject. The benefit is that you only have to fill out an application and get a credit report, and then you can buy it from all of your lenders. Many of the loan products they can access are not available to retail clients.

Get a mortgage loan at lower rates with a mortgage broker

Getting a mortgage loan from an independent mortgage broker is a process that will save you money, because most of the time, mortgage brokers can get mortgages at a much lower rate than traditional banks can offer. This is because brokers communicate with a variety of lenders at once, comparing which lender will offer you the best and lowest rate. A lower rate on your home mortgage will definitely translate into lower monthly mortgage payments and more money going to principal instead of interest.

Due to this monthly savings, the home owner can pay for their home faster or put more equity in the home that they can use later if they ever need to finance something that requires a lot of money to do so. For example, if there is a major home renovation that needs to be financed, you can use the equity in your home to pay for it, by arranging a home equity loan or line of credit.

Save time shopping for the best mortgage loan - get a mortgage broker to compare!

Smart consumers take the time to shop around and shop around for a specific product before buying to make sure they are paying the best price for that particular product. This is very similar when it comes to home loans. This is essentially what mortgage broker do. They will search various lenders and banks to find the lowest rate and the best terms and conditions for your mortgage. Having the mortgage broker compare prices for you saves you a lot of time from having to do it yourself. If the banks turned you down because of bad credit, being a freelance worker, new to Canada, or other reasons, a reputable mortgage professional can usually find you a lender.

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