Do you want to take out a mortgage soon? You usually have two options: you can agree directly with a financial institution or do business with a mortgage broker. If you want to save time and money when buying or refinancing your property in Mississauga, consulting a broker is your best option.
The Mortgage Broker Calculates Your Borrowing Capacity
If you have no idea of your borrowing capacity, the mortgage broker will determine it as realistically as possible. His goal here is not to find you the highest mortgage, but rather to find the loan that best suits your needs and budget.
Not familiar with mortgage jargon? Do not panic, the broker is there to help you see clearly. He will explain to you, for example, the advantages and disadvantages of fixed rates and variable rates without you having to do long and tedious searches on the Internet.
It Helps You Prepare Your File
Pay stubs, bank statements, investment statements, purchase offers, school and property tax accounts: mortgage lenders usually require a long list of documents. A mortgage broker in Mississauga will help you gather all your paperwork and ensure that the various forms are properly completed.
By being supported in your approach, you will be less stressed. You will also avoid having your application refused or its acceptance delayed because you failed to submit a document or forget to sign a form.
In addition, if you find yourself in a particular situation the broker will help you prepare your file well to increase the chances that your application will be accepted by a lender.
When you are ready to take out a mortgage, you will certainly want to compare the different mortgage products available on the market. However, this process can take a long time if you do it alone.
You will have to meet one by one with the advisors of the many financial institutions. Additionally, some lenders are only open during office hours, possibly requiring you to take time off work to meet with them.
A mortgage broker in Mississauga saves you from having to go back and forth to different financial institutions. In a single meeting, you will be able to compare the best products offered by a multitude of lenders.
He Negotiates The Best Rate And The Best Conditions For You
Do you hate negotiating? That’s good because the mortgage broker is a skilled negotiator. This great connoisseur of mortgage products negotiates for you with a multitude of financial institutions. When he presents you with the different offers from lenders, you know that you have, for each of them, the best possible interest rate.
In the case of a mortgage loan, a lower rate will save you hundreds or even thousands of dollars annually. For example, a $250,000 mortgage at a reduced rate of 1% will save you up to $11,662.
It’s fine to have the best interest rate possible, but if the conditions attached to it do not suit us, you will not be satisfied. Since the mortgage broker is an independent advisor (he works for you and not for a particular financial institution), he will only recommend the products that suit you best.
During the negotiation process with financial institutions, he always keeps in mind your situation, your budget, your interests, and your short and long-term projects. For example, if you only plan to keep your condo for a few years, he will not recommend that you take out a mortgage with significant penalties in the event of early repayment.
In addition to providing you with the best possible rate and terms for your mortgage, the broker will ensure that you have thought about the costs associated with buying a property, such as moving costs, notary, and transfer duties. Buyers tend to forget some of these costs, which can have serious consequences on their budget.
He Ensures The Smooth Running Of Your File Until The Transaction
The broker’s work does not stop after signing your mortgage loan. He acts as an intermediary between the various stakeholders in the real estate field.
He thus ensures the smooth running of your file until the signing of the deed of sale at the notary. You don’t know a notary? He can surely recommend one to you.
Once you’ve moved into your new home or refinanced your property, your broker continues to help you save time and money. It keeps you informed of new mortgage products and rate fluctuations.
If you have a variable rate, he will contact you when it is time to convert it to a fixed rate. This will prevent you from losing money because your rate has increased too much.
Mortgage financing is a particular type of loan, with specific characteristics that differentiate it from other types of personal loans.
The only exception is given by the need to provide documentation certifying ownership of the property, which must be 100%.
Real estate agents and mortgage brokers share similar job attributes. As licensed real estate professionals, both help their clients in obtaining residential or commercial properties. But their specific tasks are very different.
Every real estate agent must have a license. Depending on the state and agency, additional education in finance and housing laws may be required.