Buying your first house is exciting and perhaps a little confusing. One decision that can make it a lot smoother is to choose a mortgage broker at the start. They know what is available and can find the house loan that will suit your needs. The time they save you in filling out applications and shopping for the best terms, you can use finding the perfect home.
Not using a mortgage broker means you will be spending countless hours searching for loans from various institutions. Then you will spend more time completing an application for each lender. In the busy world of today having a professional do that work for you is priceless.
A mortgage broker will also have a wide range of sources to offer the best rates and payments. With one simple application completed by you, they will be able to browse the different deals from lenders and find one that suits your needs. They look for the best terms from major banks, credit unions, finance companies, trust companies, and local lenders that may not be a part of the usual network of lenders. They also know what the interest rates are for each lender.
In addition, unlike a bank loan officer, they work for you and not the lender. So, if you are in a position and want to put down less than 20% for a down payment, a broker will find a lender that will work with that amount. A bank you have been with for years, may say no to anything less than their set percentage.
If you are in a situation where you have bad credit and try to obtain a loan on your own, you might very well apply with unsuitable lenders. You will be refused and your credit rating will probably be damaged further. Having a broker will prevent that from happening because they already know which lenders can help people with bad credit. They approach the right lenders right away without damaging your rating.
The broker will also have formed links, made contacts and built relationships with people in the mortgage lending business. They know which companies best suit your needs. There is not a lot of time wasted shopping for the right company.
Having a mortgage broker is great, but how do they get paid. The lender pays them a commission based on the type and the amount of the loan. However, they do work for you. There are many honest brokers and you can find one by asking people you know or your realtor for referrals. Also ask the broker for references and check them. Most governments also have a committee or group where you can find out who has had disciplinary actions taken against them.
When ready to buy your first home it will be a good idea to find use a broker. They have the resources to find the best rates and monthly payments for you. You will be able to spend more time finding the perfect house instead of trying to find a loan.
Article Source: http://www.abcarticledirectory.com
Consulting services from a professional Canadian mortgage broker can always help home buyers save time and gain extra money when paying off their Toronto mortgages. Mortgage Brokers Toronto 120 Eglinton Avenue East, Suite 500, Toronto, ON M4P 1E2 (416) 699-1010
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