A while back a friend told me a story about looking for a mortgage for her first home. She booked an appointment with one of the big “5” banks, at her home branch, assuming that she would work with them as she’d always been happy with their services. Instead of being given the information she wanted (or needed) on mortgages, rates, insight into her budget or pre-approval, she was given a hard sell on a very large line of credit (reminiscent of stereotypical used car sales tactics). She was reassured during the hard sell the merit of being able to keep adding onto the line of credit when life’s bigger expenses like cars or renovations popped up. She and her partner left the meeting asking the sarcastic question, “You mean we can be in debt to the bank forever?” Ultimately they went to another mortgage provider when they purchased their home, but that still doesn’t change the confusion and disappointment they felt from a bank where they have previously had positive experiences. My friend now admits, in retrospect, that she probably should have gone to a mortgage broker to avoid frustration. This begs the question, why should you hire a mortgage broker?
There are a number of popular websites that allow you to plug in personal information to help you secure the best rates from a number of resources on everything from home and auto insurance to hotels and vacation booking. A mortgage broker has access to over 50 banks and lending institutions at their fingertips and can provide you with easy access to a number of options that will meet your needs. This saves you a lot of time and dead end research for options that aren’t going to appeal or apply to you.
They can Demystify a Complex Process
A mortgage broker can help explain some of the complexities of mortgages in easily understandable terms including: open vs. closed mortgages, fixed vs. variable rates, possible penalties and offer other products that you may not have heard of previously.
Get Help you with your REAL Budget
Make sure you don’t miss out on the required down payment to avoid paying home buyers insurance (if you don’t have to), find out important information on applicable taxes, closing costs, fees and potential exemptions.
Support with Paperwork
You are going to have a lot of things to take care of when you purchase your home. A mortgage broker will take care of submitting your mortgage application (and all applicable documentation) for you, obtaining your pre-approval, and finalizing your mortgage. This will give you more time to focus on other important tasks, like packing and picking out paint swatches.
Before you determine whether or not you want to hire a mortgage broker, consider this question: How do you want to invest your time while you’re hunting for your first home?