Of Prime Interest: Value of a mortgage broker

A mortgage broker is a licensed professional that specializes in real estate financing and works for you.

  • Tue May 10th, 2016 3:00pm
  • Life

Whether you purchase a home or refinance your mortgage, it’s likely the biggest financial investment you will make.

And securing financing for that investment can present challenges.

The good news is that mortgage brokers are available to assist you with navigating the complicated world of mortgages.  A mortgage broker is a licensed professional that specializes in real estate financing and works for you.

They have access to multiple lenders and can save you time by finding a mortgage or refinance solution that is just right for you. Your mortgage broker will do most of the work for you from the pre-approval to processing the documentation requirements. Your broker will be your point of contact for everything related to your financing.

There are many good reasons to work with a broker .

First, your mortgage broker is your greatest champion and will provide personalized services  tailored to suit your needs.  They will walk you through every step of the process and as independent professionals they can set appointment times that work with your lifestyle.  Another benefit of working with a broker is that they are available for questions or consultation throughout the process and after the mortgage has funded.

Second, mortgage solutions are their area of expertise.  Mortgage brokers have access to, and knowledge of multiple home loan products offered by many different lenders.  They do not work for one specific lender and can shop the market for you.

Mortgage brokers are able to advise you of the lenders that will consider your application. This is particularly helpful for individuals with poor credit ratings or for those with financial circumstances that may impact their ability to secure a loan. They can also access exclusive deals that are not available on the open market, and in some cases  may be able to negotiate a better interest rate from the lender. Your broker will help you with understanding the different financial products, the rate types and mortgage options and term.

Third, mortgage brokers help you avoid unnecessary risks and costs.  Whether you are looking at securing a new mortgage or refinancing, they can help identify applicable penalties, fees and charges so that you can make the most informed decision.

Additionally, mortgage brokers will only pull your credit bureau once to evaluate your situation and make recommendations for mortgage options.  They can then use this inquiry to shop your mortgage with different lenders.

If you choose to do your own mortgage shopping this may result in different lenders each pulling your credit report which can have a negative impact on your credit score.

Fourth, mortgage brokers provide all of these services free to borrowers.  Mortgage brokers are paid by the lenders when a mortgage is funded so there is never a cost to the client.