What does a mortgage broker actually do?
The role of a mortgage broker is to act as an intermediary between the lender and the borrower. They facilitate the transactions between the two but this is really only a simplification of the true work they put in. The mortgage broker takes care of all of the legwork in hunting down the best mortgage product and lowest interest rate for their client by using their network of financial institutions and lenders.
Can't I just go to my bank to get my mortgage?
Yes, your bank will gladly set you up with their current mortgage products and rates. The downside is when you work with a bank you will only get a single option- the one they give you. There are many lenders and financial institutions out there offering different mortgage products at different rates and you want to make sure that you are getting the very best product and rate for your unique situation. Your bank may claim to have the best mortgage products for you, but it doesn't hurt to let us have a look first. A mortgage broker will be able to gain access to your banks products and compare them to those of other lenders to ensure that you are truly getting the very best. We present you with a variety of choices, allowing you to select the best option. Make your bank compete for your business. In addition to this, you’ll have an experienced mortgage professional at your fingertips to help you make sense of your choices and understand how each mortgage product could benefit you.
Do mortgage brokers work for the banks and lenders then?
Absolutely not. A mortgage broker works solely for you, the borrower. It is up to the financial institutions and lenders to compete for your business by showing us their best products to meet your needs.
Does this mean I have to pay my mortgage broker?
No, you do not pay us a cent. Our services and fees are paid for by the lender. It is really a win/win situation for the borrower!
How can I qualify for the mortgage I want?
In order to qualify for a mortgage, a history of financial information is required of an applicant. This includes gross annual income, credit history, and assets and liabilities (previous and current). Detailed documents and outlines representing these items all influence the final credit decision. Every situation is different and your details will need to be individually assessed to determine what you can qualify for.
What will I end up paying in closing costs?
These costs will vary depending on your situation. There may be an appraisal fee, survey fees, your legal fees, and realtor commissions. Give me a call and I can help you get a better idea what you might be paying, given your situation!
What is the difference between a fixed and a variable rate mortgage?
With a fixed rate mortgage, the interest rate stays at a fixed rate throughout your mortgage term. This mortgage term can vary from 6 months to 10 years depending on your preference. Over the course of the mortgage, more of your payment will count towards the principal amount borrowed and less toward interest.
With a variable rate mortgage, your mortgage payments are fixed but the interest rate will fluctuate with changes dependent on the Prime Rate. When rates go up, a larger portion of your payment will go towards interest. When rates go down, more of your payment amount will go towards the principal.
Is there a benefit to getting a pre-approval?
Yes, there are several benefits to getting pre-approved before you start searching for your home. You will be able to secure your mortgage rate for a period of time, you'll have an idea of what you can afford, and a pre-approval will ultimately make you a more competitive buyer! This is because the seller will know that you are serious about buying and give you more negotiating power with them. It will also help to speed up the closing costs since you will already have most of the work complete.
Can a mortgage help me with my debt?
Yes, a mortgage loan is a common way of dealing with debt. A mortgage can allow you to consolidate your credit card debt, or free up money for renovations or investments.