How Does a Mortgage Broker Help Me?
Buying and owning a home is a legally and financially complex undertaking. It’s never as simple as picking up an item and buying it from an online shop or a display stand. In fact, for most people, it’s the biggest financial transaction that many will have in their lifetime—and part of that transaction involves finding and securing the best home mortgage rates. For this reason, it’s crucial to secure the services of a mortgage broker.
What does a mortgage broker do?
A mortgage broker interfaces with lending institutions, such as banks and mortgage companies, on behalf of the borrower. They help customers by handling the time-consuming process of securing the best loan possible and procuring the necessary paperwork to make an agreement happen.
While it’s entirely possible to shop around and look for advantageous deals yourself, a mortgage broker will typically already have good working relations with lenders. These connections help them get better deals in a shorter amount of time! Mortgage brokers will also have more experience in smoothing over difficulties and avoiding issues whenever possible.
How can I find the right mortgage broker for me?
Friends, family and colleagues are great resources. Chatting with them will give you a first-hand-account of their experience with a Mortgage Broker.
It’s also a good idea to talk with the mortgage broker and figure out if they’re the right fit. Ask them about topics that concern you, such as the type of credit institutions they have worked with. Ideally, they should have good working relationships with banks, local credit unions, and private lenders.
Whenever possible, they should also have professional liability insurance. While this does not help the buyer, it signals that the broker is knowledgeable and is willing to invest in themselves and their practice. Professional liability insurance provides coverage for the costs of defending oneself from claims of negligence. Examples of situations that can be constituted as negligence include mishandling a borrower’s documents, discrimination, or disclosing privileged information.
Why do some people avoid mortgage brokers?
Many buyers are leery of mortgage brokers simply because they think that mortgage brokers are somehow colluding with big banks and lenders by inflating loan prices. Many people believe that the 1 to 2% commission that brokers make is passed on to them somehow.
The truth is that lenders themselves compensate mortgage brokers at the end of the closing process. Traditionally, mortgage brokers also earn from a small fee called the “loan origination fee” that borrowers paid to the broker as a small convenience fee. Nowadays, most mortgage broker firms waive this fee as an added benefit of using their service.
Provided that they work with the right lender, borrowers stand to save a lot of money and time by having a professional shop around and make the best deals happen. While it’s certainly possible to secure a home loan yourself, a mortgage broker will be able to lay out all of your loan options. With their vast network, the mortgage broker will help you take advantage of the best interest rates, get you pre-approved, and even get a refinance whenever necessary.
Brokers from the Coastal Key Mortgage and Realty Group will help you find the best mortgage rates in Langley. Our ability to serve both as mortgage brokers and real estate agents significantly streamlines the buying and selling process. Our services include refinancing, pre-approvals, purchases, and transfers. Contact us today to learn more about our services!
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