The Upside of Applying With A Mortgage Broker

Whether you need a purchase money mortgage to buy your home or a mortgage to refinance your existing mortgage to lower your mortgage rates or you just want to take out a private second mortgage, your first step is to find a bank or a mortgage broker to help you get the mortgage.

The Bank option is clear if you have sterling credit and great verifiable income. But even then it may be a good idea to talk to a mortgage broker as they not only deal with banks but also with many other lenders known as “Monoline Lenders” and ‘B’ banks.

What is the Downside of applying with a Bank?

Limited Choice: Bank mortgage agent is limited in his offering of the mortgage products. He or she can only offer you the mortgage products that his or her bank offers.

Rigid Guidelines: The banks are highly regulated. They can rarely make any exceptions. Credit and income have to be perfect. The Source of income and funds for the down payment have to be verified. These rigid underwriting guidelines make qualifying difficult especially for the self-employed. Borrowers who get a lot of rental income may be out of luck if they don’t report the rental income on their T1 Generals or tax returns.

Limitations: Unlike a mortgage broker, if the bank cannot do your mortgage, they will not guide you or give you suggestions or suggest another source. They have limitations. So, now you will have to go to another bank and then another bank and so on. Each bank will pull your credit report and turn you down. More than likely, if one bank cannot do your mortgage, most other banks cannot do it either.

What is the Upside of applying with a Mortgage Broker?

Let’s look at why a mortgage broker is your best option for taking out a mortgage for purchase, refinance, second mortgage, or a home equity line of credit.

LOWER RATES: Did you know that the mortgage brokers are are wholesalers. Every bank has a Broker or a Wholesale Division. Banks get billions of dollars worth of mortgages annually from mortgage brokers. Because the mortgages are already processed and underwritten by the mortgage brokers, the banks save a lot of time and money. The banks pass on those savings to borrowers via the mortgage brokers. That explains why most of the time when you go to the bank the rate is higher than the rate your mortgage broker got you from the same bank.

REPRESENTING YOU ONLY: A mortgage broker works for you. A mortgage broker also is an approved mortgage broker with many banks, monoline banks, Alt-A lenders, or ‘B’ Banks and Mortgage Investment Corporations (MIC).

CONVENIENCE: A mortgage broker can make it very convenient for you to apply for your mortgage. You can apply online, over the phone, in his office or most of them can come to your home also. Mortgage Brokers are also very flexible in timing and available on weekends.

EXPERIENCE: An experienced mortgage broker knows what questions to ask you and gives you a list of the documents needed in the first instance and not piecemeal. It is irritating if a mortgage broker keeps on asking for more and more stuff. That bodes for inexperience.

CREDIT: An experienced mortgage broker will not pull your credit report right away. He or she will first evaluate your financial situation and do the debt ratios based on what you tell him. Once he knows your debt ratios are OK, he will then pull the credit report and do the debt ratios again.

BEST OPTION FOR YOU: After he is done evaluating your financial situation and credit, he will sit down and discuss your best option. If you have the time, he may even tell you to take a few steps and come back to him in a few months. A seasoned mortgage broker is very familiar with the underwriting guidelines of almost all the banks and lenders he deals with.

NO NEED TO SHOP: One big advantage of working with a mortgage broker is the amount of time you save. Rather than spending time and going through the aggravation of applying with different banks, the mortgage broker can do the comparison-shopping for you, finding you the best mortgage rate for your situation.

FINDING THE BEST MORTGAGE FOR YOURSELF: So, how do you get started? Simply make the call and let mortgage experts at CrownFunding make it super easy for you and get you the best mortgage that you qualify for, effortlessly

Call us at 778-320-9494

We look forward to speaking with you