An increasing number of mortgage applications with affordable interest rates are being approved every month. These are all coming from a growing following of accredited mortgage professionals and real estate agents in and around Canada.
The mortgage industry is still gaining despite the pandemic scourge and is more investment-friendly than ever. This can be alluded to their attractive mortgage plans and excellent advisory services that their clients find easier to deal with.
Having this in mind, one begs the question, “Do I really need a mortgage professional to help me with my housing loan and finances?”
We will shed some light on this issue as we go along with our today’s blog. Read on…
Mortgage Broker Definition
Mortgage brokers are a mediators that negotiate your preferences, parameters, circumstances, situations, and financial capacity to a lender and matches these against the latter’s criteria and mortgage term conditions leading to an agreeable mortgage loan amount provided by the lender.
They are also your go-to people if and when you are in need of bad credit mortgage brokers to repair your credit, do business with lenders, and to close mortgage deals on your behalf.
Nothing comes without its share of advantages and disadvantages, however. Despite this, it is only practical that we enumerate these to give you a better run-down of who and what you are committing to.
Advantages of Hiring a Mortgage Broker
• Provide expert advice on different lender products – their mortgage expertise is second to none and having them by your side ensures that you always arrive at a proper and informed financial decision most especially if you are lobbying for a 2nd or 3rd mortgage application.
• Free quality services for your preferential mortgage needs – all of their tools of the trade are available at your disposal. They will even guide you in understanding them so that you can acquire a better grasp of what you are dealing with.
• Multi-service managers that have extensive networks to various lenders – mortgage brokers serve as your personal managers. They are economic advisers, financial planners, credit repair specialists, tax experts, accounting and bookkeeping professionals, and personal counsel all rolled into one.
Their network includes banks, lending institutions, and third-party lenders that have collaborated with them in the past ensuring only the best and most practical deal to offer you.
• Matchmaker par excellance – your financial capacity is given best treatment via lowest possible rates that lenders are most willing offer.
This results in a significant amount of savings for you since your mortgage broker is second to none when it comes to matching your financial reliability against your lender’s proposition.
• Mortgage brokers serve as your communiqué – they are willing to work with you by being your voice to lending institutions and are experts in collaborating with other mortgage professionals and in sealing deals.
• Experts at choosing the best rates – mortgage brokers are your marketers for the most ideal mortgage rates. Their vast network allows them to compare rates from competitors and choose one with the lowest, most practical rate available.
You will mostly benefit from them if you plan to gamble with your bad credit for mortgage in order to secure a loan.
• Good command of the mortgage industry – your mortgage broker is your field general in terms of mortgaging and real estate planning.
Their comprehensive knowledge and understanding of the mortgage industry is an advantage you have against other home buyers who decide to do everything on their own.
Disadvantages of Hiring a Mortgage Broker
• You must have minimal knowledge about real estate and mortgages – some mortgage brokers would take advantage of your lack of insight regarding house purchasing and would not think twice in using this against you.
You have to adapt to them quickly but wisely so that you do not end up compromising yourself. A healthy and trusting relationship with your broker must be your utmost priority.
• Documents are part of your mortgage broker’s existence – your mortgage broker can only be as effective as to the number of documents you have in your possession.
Lacking any set of documents can either slow down your mortgage application time or make you lose money because they charge by the hour whether or not they are servicing your needs appropriately.
• Some lenders are mortgage broker shy – there could be lenders that do not like to work with brokers; hence, clients (YOU) must directly approach them.
This is a big disadvantage on your part since no one will be assisting you in assessing and in answering your mortgage application forms.
Moreover, your plans in refinancing your home could be jeopardized because a number of lenders will not allow bad credit getting a mortgage deal.
You need a mortgage broker to handle this matter with the lenders.
• Posers, fakers, and scammers fill the internet – many fictitious mortgage brokers flood the internet and their number increased just as much due to the pandemic. You may not consider this as a disadvantage but we decided to include this because hiring a bogus broker will destroy you completely.
They will place your reputation in a precarious situation that will lead to compromised financial and non-financial deals with anyone and/or with any firm.
Do a thorough research if you are deciding to hire your broker from the internet.
Other Options if deciding not to hire a Mortgage Broker
If hiring a mortgage broker does not appeal to you at the moment then there are options you could consider instead:
a) Stay with your current lender – this eases the hassle of providing documents since your lender already has access to them. One disadvantage, however, is they may not have the best possible rate available on the market.
b) Contact a lender you feel comfortable with – you can continue working with a lender who is trustworthy and known to you. Do not expect anything spectacular, though, since discounts will not be provided unlike mortgage brokers.
c) Directly approach credit unions – this is most challenging most especially if you have a negative credit score. Although feasible to win a mortgage loan through them despite your bad credit, the process involved will be a long and trying one.
Think twice about using this option against hiring a mortgage broker. Similar to the first two options above, you will have to be in touch and work with them on every transaction that you enter into.
Bad Credit Mortgage Brokers
There are a number of bad credit mortgage brokers for hire. These professionals have access to multitudinous bad credit lenders and credit card specialists that can help you out by extending favourable rates that resonate with your financial capacity.
It is still possible to get a mortgage application and approval even if you declared bankruptcy in the past, got rejected by consumer proposals, incurred delayed payments, received low credit score, and were flagged financially incapable due to erroneous credit information.
Bad credit mortgage brokers will help you look good to creditors and lenders and they will not consider you as a risky borrower. They will increase your chances of getting approved despite your current financial condition.
If you’re searching for a more hassle-free route with your mortgage plans running on bad credit then these brokers could recommend you to a team of credit repair specialists to fix your credit score and boost your credit standing.
Mortgage brokers have access to different products and offers from multiple lenders making your mortgage application easier to cope with.
Having a mortgage broker hugely improves your financial well-being and credit reputation and makes you come to terms with flexible mortgage rates and reasonable mortgage terms without any worries.
Study the advantages and disadvantages listed above and proceed accordingly. Your mortgage application depends entirely on your capacity to repay but without a credible mortgage professional to assist you properly, your loan approval is at risk of getting delayed or, much worse, rejected.
Be wise… Be vigilant… Be resourceful…
Your dream house is just a mortgage broker away!
We are you specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.
Feel free to phone +1 647-373-9651 or send an email to [email protected] to learn more.