If you are in the process of buying a home, you understand how important it is to pre-qualify for mortgages offered by various lenders. When you are pre-qualified, you know exactly how much the banks believe you can afford to spend. You will also learn how much interest you might pay and whether or not you will need a large down payment. Applying for a mortgage before you start your home search is essential if you want to walk into the process prepared and equipped to bargain. But contacting several different lenders for approval can be a time-consuming task. This is why more and more home buyers are hiring mortgage brokers to find the best loan products at the best rates.
Why Buyers Should Do Business with Mortgage Brokers
A mortgage broker is an independent professional who works on your behalf. They are not employed by the lender, and because of this, they are working to find you a loan product that suits your best interests. When you hire a mortgage broker, essentially you are hiring your own professional to shop mortgages for you. They will research the lending requirements, the terms of the loan, and the rates to show you what your options might be when you are ready to submit an offer on a home.
But when you hire a broker, you have to be ready to work with the broker for the best outcome. The broker may do the legwork, but you will need to provide the professional with the documentation and information they need to analyze your situation and come up with the most practical loan plan for you. You need to remember that brokers have connections in the industry. They know about all of the latest programs and will place options in front of you that you may have never found if you were doing the research on your. But for this to happen, you need to know how to work efficiently with the broker.
How You Can Work Efficiently With a Broker to Secure the Best Mortgage
When you sit down with your broker, it is important to provide them with all of the information they need to do their job. Every question a broker asks you is important. To you, the difference between working at your job for 9 months or a year might not sound important. To the lender, the difference can become the difference between getting approved and denied for a loan. Be honest about your income, your employment, your credit, and how much you can afford to put down. If your broker asks you to provide a specific type of documentation, ask how soon they need it and meet the deadline. Failing to provide the documentation that is needed to support a loan application might cost you thousands of dollars.
If you work with your broker, you can make their job easier and ultimately find the best loan. Stay involved in the process even after the application has been submitted. Familiarize yourself with the processes, read all of the forms you receive in detail, and hire an experienced broker that can save you money.
This post is brought to you by Sarah Reyes, a financial advisor for homeowners in Ontario. When it comes to finding the best mortgage rates, she relies on the Ottawa mortgage brokers at The Mortgage Emporium Corporation 1400 Bayly Street Pickering, ON L1W 3R2 (416) 833-5750