Securing a Home Loan: Should You Work With A Mortgage Broker?

If you are new or not used to having this type of loan, then what you should know for now is that getting or securing a mortgage involves a lot of work. This will be especially difficult if you had just recently moved into a new state or country like Canada and if your hands are full with the moving, settling down, and work, you might be thinking of getting help from a mortgage expert.

In this case, this article will help you decide whether or not you should be represented by a broker with regard to your mortgage.

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Mortgage Agent vs. Mortgage Broker

A mortgage agent is an individual who arranges a borrower’s finance through lenders who are often the credit unions, banks, and even private lenders. They are actually being paid by these lenders to sell their products. While they have a long list of lenders that may help you, this list is limited.

As for mortgage brokers, while they have similar work with agents, brokers are licensed individuals. In addition, to be a mortgage broker in Canada, you must at least have two years of experience in that kind of industry. They also have broader connections with lending institutions and individuals and at times, brokers also employ mortgage agents.

It’s important to learn the difference between a mortgage agent and a mortgage broker for you to be guided well.

Time management

This may be the number reason to work with a broker. As mentioned, they will be responsible for finding the best lenders that will fit your financial status. They will help you complete every pre-approval paper that you need to complete until the mortgage taking is confirmed.

Best mortgage rate

By this, we mean that you can possibly get a lower mortgage rate with a broker than with you dealing directly with the lender. Brokers generally get discounts from lenders and, thus, will negotiate on your part depending on your financial situation or status. This will help you save time comparing the rates among the lenders.

Mortgage Approval

For the uneducated with regards to mortgages, brokers will explain to you in detail the paperwork, such as its terms and conditions. They will help you from the beginning process up until the end of the closing of the mortgage.

Managing Fees

There are actually quite a few fees involving mortgage, especially if it is new. With a mortgage broker, they can also do negotiations similar to mortgage rates. They can help you by getting the lenders to waive some of the fees that you may incur while the mortgage agreement is still in effect.

Final Words

Whether or not you choose to use the services of a mortgage broker or agent is up to you. The important thing to think about when you are working with one is that you see to it that both of your interests align. Also, you are not obligated to only have one expert opinion, so you might as well have advice from other mortgage brokers.

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