In not knowing or understanding the vital role that a mortgage broker can play you stand to lose what could amount to thousands of dollars in long term savings. Here are just 6 of the reasons why it makes sense to use a mortgage broker:
Mortgage brokers have access to many different lenders and rates and can achieve rates for you that you might not otherwise have known about or been able to access, and they are often significantly lower than those that are advertised by banks and credit unions.
You might not know it, but many lenders’ rates and mortgages can only be accessed through a mortgage broker, and the brokers in turn, can vet lenders and negotiate rates on your behalf. Experienced brokers often have good, working relationships with lenders, which of course helps to get the best results for you, the client. When you don’t use a broker and go straight to a bank for a mortgage, you could face stricter and more costly penalties for breaking your mortgage contract along with a higher interest rate, which could end up costing you thousands of dollars more over the duration of your mortgage.
If you’re self-employed or require more flexible prepayment terms, with access to a wide range of lenders, a broker can help find a product that can be customized to suit your specific needs and financial situation.
When you buy your first home (or even your second or third), there’s a lot of information to get your head around, and with realtors and lawyers adding their input, the entire process can become overwhelming and difficult to understand. A good mortgage broker can help explain all the finer details and simplify the entire process so that with their guidance, you can make more informed decisions and know what you are signing up for.
With their experience of working with a variety of clients coming from a variety of financial backgrounds, they are best placed to offer you advice that will serve you well in the long run. They may even offer you scenarios and options that hadn’t entered your mind, and their capacity to save you money is vast.
When you’re overwhelmed by all the mortgage options available, a broker can calmly talk you through them all, and they often make themselves available outside of standard working hours, too, so that you always have someone to answer your queries.
Before you even begin looking for a new property to buy, find a broker that you can have a good relationship with, and talk to them in detail about your finances and your personal circumstances. Once you’ve found a broker that you like and respect, the whole process becomes much less stressful and you can begin to get excited about the future and what it holds in store.