When it comes to mortgage brokers and what they do, there are still a lot of myths and misunderstandings out there.
A mortgage broker is a qualified individual who has obtained Real Estate Council of Alberta licensure (RECA). A mortgage broker must satisfy educational and professional behavior criteria, as well as pass background security checks, in order to be granted this accreditation.
What distinguishes a mortgage broker from a bank?
You should never compare a mortgage broker to your neighborhood bank. Each has a very distinct objective and role. An independent mortgage broker is exactly that—independent; they are not connected to any one lender. They have a duty to provide you with unbiased counsel, so to speak.
They are essentially professionals that have received training and hold a license in the field of mortgage financing. Their main responsibility is to serve you, not the lender! They shop the mortgage market to find the best rate, duration, and product for the customer, but they also go above and above by offering credit repair and debt consolidation services.
The best part is that a mortgage obtained through a broker functions exactly like one obtained from your neighborhood lending institution. There are alternatives for pre-payment, rapid payments, and online banking. It is simple and trouble-free.
Why ought I to work with a private mortgage broker?
Working with a broker who will act in your best interests and make sure the mortgage you obtain is the one that best meets your needs pays off. Every significant lender in Canada is directly accessible to mortgage broker in Bend. Private lenders, trust and insurance companies, and chartered banks all have varying rates and features for their products. The fact that many of these lenders can only be contacted through a mortgage broker is the most crucial information for you to know. Make sure you choose the one that is best for you.
Once you’ve chosen where to apply, getting a mortgage approval frequently depends on how you present your application and who you send it. An experienced mortgage broker knows how to present your application for a quick, favorable response. Depending on the lender’s workload, the time it takes for a broker to receive a response from one and secure financing for you can be as little as one to three days.
The mortgage broker is paid by who?
When a residential mortgage transaction is completed and funded, the lender pays the mortgage broker a “finder’s fee.” As a result, the majority of brokers don’t bill their clients for their services. Ask your mortgage broker up front if the lender will be paying their fee to avoid any misconceptions.
Independent statistics demonstrate that, as more people become aware of what mortgage brokers do, their use is expanding rapidly every year.
Ask your neighbors or friends who they know or have worked with in the past if you’re thinking about using a broker. Learn more about the broker you’ve chosen. Do they have a connection to a lender? What steps do they take to find a mortgage? Ask if they will visit your office or home if you’re busy so you can discuss a lender’s offer. Most importantly, request that the broker review your credit bureau.
Keep in mind that using a large bank that only offers you one “posted” rate could run you thousands of dollars. Why spend more money than you have to when you don’t have to?
