Buying a house is one of the biggest decisions that you will ever make in your life, which is why taking the time to do it right is imperative. It’s easy to get caught up in the excitement of the buying process, which often means settling on the first mortgage rate that your bank offers you. This is a mistake that many people make, as they simply don’t take the time to go shopping for a better rate. It can be a time-consuming hassle to do alone, but one that could potentially save you thousands of dollars once you sign on the dotted line. This is where a mortgage broker can quickly become your biggest ally.
Simply put, a mortgage broker serves as the middleman in your dealings with potential mortgage lenders. Rather than you having to call each lender individually to get their rates, the broker will do it all for you. If you live in a major metropolitan city like Toronto, then you are looking at a ton of different potential lender options. Brokers also have access to extra options from private investors that banks won’t offer. Going to them all individually could prove to be a Herculean task, but it’s something that mortgage brokers do for a relatively small fee. That fee will more than pay for itself if they can land you a rate that is a well below what your bank is offering.
Getting the best rate is not the only reason to use a mortgage broker, though, as there are some other benefits worth considering. If you were to do the rate shopping yourself, it’s possible that your credit score could take a hit with every application that you submit. Those rules do not apply when using a broker. Your credit score will not be affected, and the broker will do all the time-consuming legwork, using your current financial situation to shop for the best deal possible.
If you have ever tried to get a loan through your bank, you are probably aware that getting in touch with your loan officer can be like jumping through hoops. These people work for the bank, not for you, which is most certainly not the case with a broker. They only get paid if they find you a good deal, so you can bet that they are going to be on call whenever you need them. They are a lot like real estate agents in this way, so expect a similar sort of relationship.
Many mortgage brokers will have relationships in place with specific lenders, and that could well be good news for you. In order to forge that bond and maintain the partnership, some lenders will be willing to waive certain fees if the broker brings them a reliable mortgage candidate. Not only do you get a great rate, you also save some money even before you sign a single document. The ability to save money is there, and why would you not want to do that when buying a big ticket item like a house?