Many people buying a home make the mistake of applying for a mortgage directly with one bank. Banks look at your income, savings, and debts to determine your eligibility for a mortgage, but they only provide you with one loan offer.
It means that it is not possible to compare various offers from different banks. It can result in suboptimal loan conditions, e.g. insufficient funds provided by the lender, or a high-interest rate charged for the loan.
Look for a certified mortgage broker to provide you with several offers from different lenders to help you find the optimal mortgage. A good broker will also be able to tell you whether your income, assets, and debts are sufficient to qualify for the mortgage you want.
But not just any broker will do, since he might insist on an exorbitant fee or provide services that are below standard. The best way to find a broker is via word of mouth (i.e. friends and acquaintances who have already used the services of a mortgage broker). If you have not used the services of a broker before, ask your real estate agent for advice.
Ask for references from other clients and see whether they are satisfied with the service provided by the mortgage broker. A mortgage broker Newmarket will gladly provide you with information on his previous clients. This way, you can contact them directly to ask whether their expectations were met.
If you’re buying real estate, make sure to hire a good broker. Otherwise, you might not qualify for the best loan conditions, and your property purchase could turn out to be more expensive than expected.
Why is it essential to work with an experienced mortgage broker?
The advantages of working with an experienced mortgage broker are apparent:
- You’ll get a reasonable offer, with favourable conditions;
- You won’t have to spend much time and effort since your broker will handle all the paperwork;
- You can make use of an extensive network of contacts and access loans that are not advertised;
- The broker will search for financing solutions that are tailored to your individual needs;
- The broker will help you avoid pitfalls, e.g. if you buy a property in another country.
Before hiring a mortgage broker, make sure to consider the following factors:
- Does your mortgage broker have a good track record? Ask for references and see whether most of his customers are satisfied.
- Does the broker have enough knowledge regarding your local market? If you want to apply for refinancing, the broker will need particular expertise in this area.
- How long has the broker been working in this industry? The longer he’s been active in the market, the more likely it is that he has worked with all the lenders.
- How much does the broker charge for his services? It varies and depends on such factors as whether you’re planning on refinancing or buying a property, as well as the complexity of your financial situation.
When looking for a mortgage broker, remember that a good broker will always address all your concerns, and he will never try to sell you any unnecessary products or services. A professional broker will also inform you about additional financing options, e.g. government grants and tax credits.