Shopping around for a great rate on a loan for your mortgage? Consider a mortgage broker and save yourself time, hassle and headache. They’ll do the work for you!
What is a mortgage broker? Simply put, it’s an independent, third party that sources the best possible rates from various lenders like banks and credit unions. Think of them as a liaison between you (the customer) and a business (the lender).
If you’re thinking about bringing a mortgage broker onside to work with you, there are few things you need to know and a few things you should be prepared for. Here are a few questions you can ask that will help get you started.
What are your fees?
Mortgage brokers typically work on commissions, not salaries. They can receive compensation for their work through a variety of means: they may get paid from the lender you have chosen to go with or they may be paid directly by you, the homeowner. (This is usually a percentage of the total sale price of the home, so the higher the amount of the loan, the more they will be paid.) It’s a good idea to ask a potential mortgage broker about their fee structure and how they are calculated/paid out. A reputable mortgage broker will always be upfront about costs and other related expenses.
Who are your lenders?
Similar to above, a good mortgage broker should also have no problem sharing the names of the lending institutions that he or she deals with. The list should be varied and extensive. They should be able to point to the pros and cons of each institution and be able to make recommendations with an unbiased eye. Ultimately, the role of the mortgage broker is to make sure that you find the best possible rate for your loan.
Is it okay if I speak with a recent client?
A testimonial (or two) never hurts because you can hear first hand about someone else’s experience and how they felt about the process.
- Was it a favourable one for them? If so, why?
- What stood out for them?
- Did someone go above and beyond? If so, in what way?
- Were the fees reasonable?
- Did they feel they got good value for what was paid out?
A good mortgage broker should welcome this inquiry and be more than happy to pass on the name or names of past clients that you could speak to.
The decision as to whether or not you need a mortgage broker is, of course, up to you. Having a good one working alongside you can help save a lot of time and trouble while also securing the best possible rate. On the other hand, if you’re not in a hurry, then it never hurts to do some checking around on your own. In the end, it’s about making sure you’re comfortable and secure regarding one of the biggest, most important purchases you’ll make in your lifetime. Think Ingram Mortgage Team may be the right mortgage broker for you? Give us a call or start your mortgage process here.