In today’s market, more and more buyers are turning to a mortgage broker to help with their mortgage needs over approaching traditional lenders.
Here are a few things you should consider to ensure you choose the right Mortgage Broker.
First of All, What is a Mortgage Broker?
A mortgage broker is a mediator between you and the lender. They shop around and negotiate on your behalf with lenders to get the best possible mortgage rate. They also take care of all the necessary paperwork for an easy and painless mortgage application process.
The reason a homebuyer would choose to hire a mortgage broker–or mortgage advisor as they are sometimes called–is because these professionals have many years of experience with mortgages and have developed significant industry relationships. They can leverage their expertise and connections to get you a great deal.
Mortgage brokers are also beneficial to help buyers with less-than-ideal credit scores secure reasonable mortgage rates. They are your advocates and advisors when it comes to securing a mortgage.
Meet Face-to-Face
Although it might not be possible right now, it’s a good idea to meet your mortgage broker face-to-face before making a commitment to work with them. It’s a much better way to get to know someone and get a feel for their personality and working style.
Buying a home is one of the biggest purchases of your life. It’s important that your mortgage is handled correctly and you understand all the terms and conditions involved. Face-to-face meetings are just much better at conveying information and solidifying a successful business relationship.
Ask A Lot of Questions
Perhaps this is your first time buying a home. Maybe you aren’t too experienced with mortgages and you don’t really know where to start. It’s important to still try and ask as many questions as possible when choosing a mortgage broker. They should be able to sufficiently explain everything to you and make you feel confident and comfortable with their ability.
Some questions you could ask them could include:
- Can you show me accreditations or proof of licensing?
- Have you taken any specific courses or schooling to advance your knowledge?
- Can you provide me with testimonials from past clients?
- Which lenders do you typically work with?
- Why did you choose to work with these specific lenders?
We also recommend doing some mortgage research on your own before meeting with them. That way, you will at least have a baseline reference for what kind of rates might be available to you. It’s better to be overprepared for this meeting.
Curious about what’s happening in the market today? Here are some of our most recent posts:
- How Will October’s Inflation Rate Affect Housing?
- Is it Time to Leave the Guelph Rental Market Behind?
- Can You Time the Market and Win Big?
Listen to the Pitch
Your mortgage broker will be your advocate in getting the best possible mortgage rate you can. At the end of the day, they need to be a good salesperson. You should feel absolutely confident in their ability to speak to lenders and negotiate on your behalf.
One way to get an idea of this is to let them “sell themselves.” Listen to their pitch and make note of any compelling ideas they present. The better they are at selling themselves to you, the better they will be at selling you to lenders.
Compare
Unless you are completely blown away by the first mortgage broker you meet, you will probably need to meet with a few others to make your final decision. Compare each broker you meet and consider whether they are aligned with your goals and interests and if they presented themselves in a way that gives you confidence.
Tips on Selecting a Mortgage Agent
When buying your first home, or any home in that matter, it is very important who you select to handle your finances and the mortgage for the property. It’s just as important as hiring your realtor. Just like the real estate industry, the level of service and competency that you can get from mortgage broker to mortgage broker can vary dramatically. Picking the wrong lender can result in you losing thousands of dollars or, even worse, losing out on your dream property.
I had one client one time who went in to get a preapproval They just walked into their branch and talked to whoever happened to be sitting at the desk that day, not a specialist, and they got a preapproval. We went out, we started shopping for homes, and they found their dream home. They put an offer in on the property. They then went back to that same person, who then told them that their mortgage was actually going to be substantially more expensive than they thought and their monthly payments threw them out of their ratio. They were going to lose their dream home.
I took them to one of our specialists and within 24 hours, we had an approval for them. The difference in their monthly payments, from what my specialist had versus what the person at the branch had, was $600 a month. They almost lost their dream home and even if they had gone forward with the home, they would’ve been paying astronomically more money.
The big difference was just how the two lenders structured the deal. Your mortgage is usually a really substantial loan and it’s very important that you have the right person who knows how to properly structure that loan to protect you, as well as someone who can get back to you quickly.
I can’t tell you how many times I’ve seen people who have put offers in on properties with the condition of finance and then not heard back from their lender in time for them to remove the conditions, which puts them in a horrible position.
A great way to find a good lender is to talk to your real estate agent. They deal with lenders all the time and they know which ones are the good ones and which ones to avoid.
Looking for more advice on finding the right home for your family in the current market? A few of our latest resources will help:
- The Ultimate Guide for First-Time Buyers in Guelph
- Buying an Older Home? Here Are The Red Flags To Watch Out For
- Can You Buy a House With a Poor Credit Score?
Your Real Estate Agent Can Also Help!
If you’re not sure how to get started, your real estate agent is a great resource for professional recommendations. Agents often keep a curated list of network connections, including trusted mortgage brokers. So if you’re not sure where to start, your agent could be a great contact.
Are you thinking about buying a home in Guelph or the surrounding area? Download our Buyer’s Guide to find out what you can expect.
