Are you house-hunting? Have you been pre-approved for a mortgage? Are you getting the best interest rate? If you answered yes to any of these questions, you might be interested in how working with a mortgage broker can be helpful and save you money in the long-run.
What is a Mortgage Broker?
Mortgage brokers are the middleman between lenders and homeowners. Their main goal is to work with multiple banks to find lenders that have competitive interest rates that are suited to your needs. Mortgage brokers have a group of lenders that work with them which helps makes your home buying and lending process easier.
Mortgage brokers are regulated and licensed financial professionals. They do all of the important work such as verifying your employment and income, pulling your credit history, and gathering your documents.
Once you find a lender or loan that works for you, the mortgage broker will contact the closing agent, real estate agent, and bank to make sure that the transaction runs smoothly.
Will it Cost More to Hire a Mortgage Broker?
Most mortgage brokers will offer you competitive rates that are better than the banks. Rather than receiving the rate the bank is offering, brokers have several lenders who compete on providing the lowest rate. With multiple options it helps home owners find the best deals on their mortgage.
This all depends on what mortgage broker you choose and whether another broke can do more for your specific loan scenario. For instance, a broker who might have access to good refinance rates due to pricing by a wholesale partner.
What Kinds of Loans Are Available?
Mortgage brokers don’t just do new home buying mortgages in Winnipeg. They can also do mortgage renewals, debt consolidation, mortgage refinancing and more. Feel free to contact me to discuss other mortgage options.
When all of the data is presented, your mortgage broker will send a loan to the lenders in order to receive approval. This will occur with your bank and your broker will tell you the outcome once the transaction is completed.
Throughout the loan process, your mortgage broker will communicate with both the borrower and the bank so that everything occurs smoothly.
As stated earlier, if you do use a broker, then you won’t have to directly interact with a bank. Thus, all of the correspondence will be sent to the broker and their staff and then you afterwards.
Can Mortgage Brokers Help Me Save Money?
Yes, you can save a lot of money using mortgage brokers for a few reasons. Mortgage brokers have different forms of mortgage than using a bank. And they have exclusive access to lenders than local lending companies.
Based on a Bank of Canada report, negotiation skills and shopping around are crucial to getting the best mortgage deals. It also stated that borrowers with mortgage brokers tend to pay less in rates and fees. Since mortgage brokers tend to have a good relationship with a myriad of lenders and can negotiate for better rates.
Overall, you can get a mortgage broker to improve the changes of receiving a loan. By doing so, you’ll have a smooth transaction and you won’t have to wait for banks that can take forever to complete this process. Think about getting a mortgage broker in Winnipeg, as it will help make your housing efforts easier.
Do you have any questions about getting a mortgage broker in Canada?
Tell us in the comments below.
This is a sponsored post by Sandi Huynen, a local mortgage broker in Winnipeg. She’ll be contributing another post in this two-part series to help young families save money. Questions about how a mortgage broker can help you in your search for the perfect home? Contact Sandi at 204-996-6046.