When you enter the real estate realm of buying and selling property, it’s important to have a great team that will prioritize your best interests. A key person in your team should be a mortgage broker. What does a mortgage broker do and why are they of interest to you?
A mortgage broker is a licensed professional who will compare mortgages from various lenders to determine the best option for you. They essentially act as a middleman between you and the lender. A great broker does not only get you the best interest rates, but they also explain the fine print and confusing texts that are on mortgage paperwork.
A mortgage broker and mortgage specialist are not to be confused. A specialist works for a lending institution and has the expertise and knowledge of that specific institution’s services. They won’t be able to help you shop around as they wouldn’t have built those relationships with other lenders, and don’t have the expansive knowledge that a mortgage broker would have.
The benefit of having a mortgage broker is that they have relationships with multiple lenders ranging from traditional lenders such as banks and alternative lenders. They usually have access to lenders that you wouldn’t have access to, and are able to explore various options to find the best options for you. Smaller, non-traditional lenders who don’t share the same overhead costs as banks, and may offer cheaper rates and fewer fees. Mortgage brokers are also able to help those who have circumstances that would make a bank loan an unrealistic option for them.
What Can I Expect My Experience To Be Like With A Mortgage Broker?
When mortgage brokers receive an application, they will shop around to various lenders (traditional/non-traditional) to see who will offer you the best rates, terms and conditions. Next, they will meet with you to go over your options. You don’t have to expect to pay for your mortgage broker’s services, as they are paid a commission by lenders, which depends on what mortgage product you choose. When choosing a mortgage broker, it’s important that you choose the right one, so you know they are focused on finding the best mortgage product for you and not what will give them the most commission.
Questions To Ask Your Mortgage Broker
- Which mortgage would be best for me?
- Are there any downpayment assistance programs for me or the property I am buying?
- How will I get updates on the loan’s progress?
If you are in the market for a mortgage broker, contact us at Mortgage Makers Inc. We are licensed by the Real Estate Council of Alberta (RECA), and have over 30 years of experience in real estate financing. Whether you are a first-time home-buyer or looking to build your dream home, we can help bring these goals to life.