Benefits of using a Mortgage Broker
Why Home Buyers Should Use Mortgage Brokers, And How It Can Benefit Them?
All of us hope to buy a home for ourselves so that we can have our little world of happiness. Buying yourself a home is a wonderful thing, but it’s definitely not so easy and not so economical.
There are many ways to get a mortgage, but in this article, we’re focusing on two, and that is mortgage brokers and banks. We’re going to do a comparison between both so that you can yourself see why mortgage brokers are a more reliable option than banks for home buyers and why it’s becoming the first choice among the citizens in Ontario, Canada.
What do mortgage agents do?
They act as middlemen between the loan lenders (Banks, Credit Unions & Private Lenders) and the loan borrowers. The question arises: why would borrowers need a middleman? The answer to this question is because the mortgage agents are licensed professionals in this field, they handle loans on wholesale. They provide you the essential information and secure financing every day, so they know the drill.
What do banks do?
Banks/mortgage lenders deal directly with borrowers and provide mortgages on a retail level, and that’s why they call it consumer-direct lending.
It’s a choice to make
Although there are many ways to get a mortgage, these two are the most preferred ways to get it. How to choose between these two? Well, that depends on a lot of factors like your individual needs, loan scenario, and many such things.
You should compare the interest rates and fees of both of them and find what works for you, then choose accordingly. If your loan situation is tricky, then there are options for that too. Keep on reading
Why you should choose a mortgage agent
Tricky mortgage situation - If you’re facing a troublesome time in getting the mortgage from the bank directly, then choosing a mortgage agent can be the solution for you. As they specialize in handling tricky mortgage situations where the borrowers are getting turned away from the vast banks because they didn’t qualify for a mortgage. In such situations, mortgage agents can be the ray of hope.
They know more lenders - Mortgage agents know a lot of other sources than banks. Their expertise isn’t just confined to vast banks, but they know many potential lenders. They will get you approved quickly and that too with only one credit inquiry so that it won’t affect your score.
They negotiate for you - Banks will expect you to negotiate or come to terms with what interest rate they are offering. On the other hand, mortgage agents will have your back and pitch for you in getting the lowest interest rate.
Availability for the meeting - Most mortgage agents is flexible with the timings of meetings and communication. You can talk through with them over texts, emails, Skype calls, or any other way which suits you. There are online brokers available nowadays if you do not want to get into face-to-face meetings. Many mortgage agents are available to talk, even after business hours and big mortgage companies are going digital as well if you prefer it that way.
Strong possibility for getting a mortgage - As we mentioned above, they know over one source of getting a mortgage so the chances of getting a mortgage become higher with them. If the A-lenders aren’t approving your mortgage, they will find a B-lender for you. Mortgage brokers look past numbers and handle every unique case differently. Some lenders only deal with mortgage agents, so you will not know of these lenders unless you have a mortgage agent. You can take benefit from their network.
Gaining popularity - Housing Corporation’s 2017 Mortgage Consumer Survey is proof that mortgage agents are gaining popularity among the borrowers. They are a big part of the mortgage business.
55% of the first-time buyers chose mortgage brokers to be their first choice over banks, and 35% of the people who renewed their mortgage chose mortgage agents.
These many people trusted mortgage agents over banks, and we suggest you should do the same.
Personalized experience - If you choose to go with a mortgage agent on your finance journey, then it will be a more personalized process. You’ll know the insights, so you will feel a bit more involved. Your broker will be with you for solving problems like low-down payment, short credit history, or to avoid mortgage insurance. You will talk to a human being rather than a giant financial institution that can turn you down any minute.
A helping hand - On the one hand, banks will turn you away if your credit score is too low, explaining nothing. On the other hand, mortgage agents will give you feedbacks like why is your credit score so low and how can you improve it by paying off student loan or your credit card. This is just an example of a recommendation. They know a lot of other details as well which you can benefit from.
They will save your wallet - Those who are of the view that seeing a mortgage agent is an extra cost should know, it is a myth. A Mortgage agent will somehow try to save your money rather than wasting it. There are a lot of fees included in getting a mortgage such as registration fees, appraisal fees, origination fees, and many others. A mortgage agent can and will help you in getting away from paying some of these fees, and you can save a few dollars.
Risk-free- A mortgage broker usually gets paid when the deal closes, and most mortgage agents don’t ask for any money upfront from the borrowers. So, you have nothing to lose.
In the end, we want to say that no bank will go an extra mile for you, but a mortgage agent will be with you on every step providing the solutions. They will provide you with loans that aren’t usually advertised.