Why You Should Consider Using A Mortgage Broker

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Mortgage Broker

Mortgage brokerage companies play an important role in the mortgage lending industry. They link lenders to prospective homeowners. They also help customers make informed decisions when they’re planning to buy a house. Every city has dozens of mortgage brokerage companies, and they are all different. Therefore, consumers should take the time to conduct the necessary background research before deciding to commit themselves to a given broker. However, you can never go wrong with Tundra Mortgage Brokers

consult a mortgage broker

Getting the Best Mortgage Offer

i) Buying a House

Buying a House

If you are looking for an affordable mortgage to help you secure the home of your dream, the easiest way of finding a suitable mortgage is to consult a mortgage broker. Your broker will look at your income, credit score, and the value of the desired property and help you pick the right mortgage lender for your needs. With the right mortgage, you can purchase the house of your dreams cost-effectively. While you can always decide to search for a suitable mortgage on your own, this is going to take a lot of time. You may also not get the best results. By consulting an experienced and reliable broker, you can be assured of finding the best mortgage offer on the market. 

ii) Refinancing

Refinancing

Remortgaging the house may become necessary a few years after buying the house. This is because the terms and conditions of a mortgage may change and make the mortgage unaffordable. Similarly, your financial situation may change and make it hard for you to service your mortgage effectively. By refinancing the mortgage, you can seek to improve the terms and conditions of your mortgage to make it easier for you to make your monthly payments. For instance, you can seek to have the repayment period of the mortgage extended to reduce your monthly installments. You can also refinance to lower the prevailing mortgage rate. Lastly, you can refinance to borrow against the equity you have built up in the property over the years. 

How a Broker Can Help You

a) Comparing Interest Rates

The first thing that a broker will help you with is to compare the mortgage rates different lenders in the industry are charging. Brokers have the resources, skills, and expertise needed to help clients find the right loan for their needs. Since you want to procure the most affordable mortgage on the market, you must get in touch with a trusted and reliable broker. While some people may be able to achieve the same result, they can waste a lot of time. 

b) Comparing Down Payments

Some lenders usually require huge deposits before approving mortgage applications. For instance, some lenders may ask for a down payment of 30% or more before approving the mortgage application. However, other firms usually ask for a 5% or 10% down payment. If you do not have any savings, you should look for mortgage companies offering 100% financing. Depending on your financial needs, the ideal broker should be able to scour the market and help you identify the perfect mortgage broker for your unique needs. 

c) Mortgage Prequalification

When you decide to buy a house, the first thing you will want to know is how much can you afford. This will depend on your income and the deposit you have saved up over the years. While you can easily use online mortgage calculators to find out how much you can afford, the easiest way to get accurate information is to consult a mortgage broker. Most brokers will be happy to assess your mortgage application and tell you the exact amount of money you can qualify for with most lenders. This information will help you when shopping around for a suitable home for you and your family. 

d) Mortgage Preapproval

Sellers usually go through a lot of challenges, including holding meetings and negotiations with people who are not serious about buying the house. That is why most sellers nowadays require a mortgage preapproval form from interested parties before any discussions can be held. Your mortgage broker will provide you with a mortgage preapproval form stating exactly how much you can afford to pay. This form will serve as a price guide when shopping around for the right property for your needs. 

As you can see, there are many important reasons why you should consult a mortgage broker. Since there are many brokers in the market, be sure to take the time to conduct the necessary research before you make a decision. Be sure to create a shortlist of brokers before you start narrowing down the search. Below are some of the key factors to take into consideration:

1. Licensing

This is a key factor of consideration because there are many quacks out there. The only way to weed out the quacks is to check the validity of licences. Only firms that are licensed to offer mortgage brokerage services to the public should get any consideration. The issuing authority and expiry date of the licence are two of the most important factors to be taken into consideration. 

2. Experience

The number of years a broker has been operating in the city is an important factor. Therefore, you have to compare the years of experience and the number of clients served by different brokers. This will give you a good idea about the amount of experience different firms have in the industry. The most experienced brokers deserve to be given special consideration. 

3. Reputation

Service providers are usually known for their reputation. The most trusted and most reliable brokers should be given preferential treatment. Therefore, be sure to read reviews, check testimonials and go through news articles written about different brokers before you decide to commit yourself. This will help you to identify the most trusted and reliable brokers for your needs. 

4. Insurance and Guarantees

The top mortgage brokers have liability insurance. This is necessary because they can make mistakes. Imagine a broker who claims that the mortgage offer they provide you is the best on the market only for you to find a better offer after committing. To protect yourself from this type of risk, be sure to only consider insured brokers. The ideal broker should also offer guarantees.

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