Securing mortgage financing can seem like an intimidating and confusing process, but it doesn’t have to be that way. Mortgage Brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Reasons to use a Mortgage Broker
· Access to different lenders, banks, trust companies, investors and financial institutions.
· Fast mortgage pre-approvals with no cost or obligation. (Some conditions may apply)
· They are experts at matching you with the best-suited mortgage
· Access to lower rates based on volume relationships with lenders
· They work for YOU, not the lender and have a vested interest in ensuring your satisfaction needs since they rely on referrals and repeat business.
· Up-to-date on all the mortgage rates, terms and re-payment options available on the market
· They only specialize in mortgages and are knowledgeable on current trends
· They save you time and money
Here’s a quick summary of the process:
Step 1: Mortgage Application
The completion of a mortgage application is the first key step to be undertaken. This information combined with a credit check will enable your mortgage broker to pre-approve you for mortgage financing. A mortgage pre-approval accomplishes two goals. First, it lets you know the size of the mortgage you qualify for and secondly it provides interest rate protection for a specific period of time, typically 120 days. With this knowledge you can confidently work with your Realtor to search for prospective properties that fit your budget. Once the application is received by the mortgage broker, you will be contacted within 24 hours to review the results.
Step 2: Choosing the Right Mortgage
Like all homes, Canadian mortgages also come in all shapes and sizes. While clearly the interest rate is a key factor, there are a number of other questions that should be addressed to ensure your mortgage is aligned with your financial situation and goals.
These include, but are not limited to:
· Short term vs. Long term
· Fixed rate vs. variable rate
· Pre-payment privileges
· Penalties for early payout
· Portability Options
· Home equity lines of credit vs. mortgage
Once again, taking advantage of the knowledge of a Mortgage Broker is the best way to guarantee your mortgage solution is tailored to your needs.
Step 3: Mortgage Submission and Approval
Once the optimal mortgage solution has been determined, the mortgage broker will submit your deal for formal approval. Once a mortgage approval is received, the mortgage broker will contact you to review the paperwork and discuss the conditions of the approval. Additional documentation such as employment/income confirmation and down payment details will also be required. A mortgage broker will take the time to go through every term and condition to ensure you understand what you are signing.
Step 4: Lawyer
Upon receipt of the signed mortgage paperwork and supporting documentation, the mortgage broker will have the lender send mortgage instructions to your lawyer. These instructions provide your lawyer with the details necessary to draw up the legal documentation. You would then setup a time near your closing date to meet with your lawyer to sign all of the paperwork and provide other necessary items such as photo identification, a bank draft to cover the down payment and closing costs and proof of property insurance.
One of the most important things to remember is that the role and responsibilites of the mortgage broker do not end at closing. They will be there to answer any questions you may have at any point during the life of your mortgage. Please remember to take advantage of this fact.