I deal with many clients, as a Grande Prairie mortgage broker, who has moved from going directly to a lender for a mortgage to using a broker. There are so many benefits to choosing a mortgage broker, whether it to buy your first home, take out a second mortgage, or renew your existing one to get a better rate. It’s important to find the right financing for your circumstances, and that’s something our Grande Prairie mortgage brokers excel at.
5 Benefits of Using a Mortgage Broker
It’s not the same as it was in the old days, where you would find the home you want and then go to your local bank to take out a mortgage. People would accept the terms offered with no questions asked about getting better rates. A lot has changed though and shopping around can save you thousands of dollars of savings from interest rates. From getting lower rates to having more loan options to choose from, it makes sense to go to a mortgage broker.
You Save Time and Money
When you use a mortgage broker you aren’t having to apply to all of these lenders on your own, which can hurt your credit score. A mortgage broker does all the work for you and is looking out for your best interests. A broker also has access to a variety of lenders and mortgage packages that you won’t get from a lender. This means lower rates that can save you thousands over the life of your mortgage.
Keeps Your Credit Score Safe
When you apply to many lenders on your own it can impact your credit score. This is because each time you apply, the lender pulls your history, resulting in a hard check on your credit report. Too many hard checks in a short period will lower your credit score. When you use a broker they only pull your credit report once, which helps to protect your credit score.
Mortgage brokers tend to do a lot of transactions with certain lenders. This means they get volume bonuses that work to pass savings on to you as their client. A good broker needs to be an unbiased negotiator, which means they have a better chance of getting you better rates from a lender than you would if you went yourself. Not to mention, lower rates mean you will have payments that are lower too.
As mentioned above, a mortgage broker works with many lenders and referrals from clients are indispensable. It’s in a broker’s best interest to give unbiased advice and make sure clients are satisfied. A broker should choose a lender and mortgage package that is suited to your needs and not because they were offered a finders’ fee or bonus.
Virtually No Cost
Mortgage brokers are compensated by lenders directly. This means that, in most cases, there will be no cost to you. There are some instances when you could be charged a fee is when going with a private lender that does not pay a broker fee. In these situations, a broker will tell you about this upfront so that you are aware of any potential costs to yourself.
You can see why it makes sense to use a Grande Prairie mortgage broker. If you are looking for a mortgage, give one of ours a call today!