For first-time home buyers and those not used to the mortgage system, enlisting the expertise and assistance from a mortgage broker is a great way to not only improve your knowledge of the housing industry but to also find the best contracts and rates available to you.
While there has been some speculation in recent years that some brokers may not act in their clients’ best interests, as a whole the industry is beneficial and often a necessary step many homeowners take during their first purchase or mortgage.
Today, we’ll cover some of the advantages and disadvantages of mortgage brokers so you can more easily decide if their services are right for you.
The Pros of a Mortgage Broker
- A broker saves you time and energy: Mortgage brokers can be used to reduce the legwork between yourself, lawyers, lenders, and other professionals you’ll meet while securing your mortgage. Brokers are also useful for keeping you away from lenders with high rates or unclear terms that may exploit you with extra costs. Of course, you should do your own research before meeting with a broker. This will allow you to assess their credibility and ensure you get the best deals.
- Brokers have better access and information: There are some mortgage lenders who don’t work with the public and instead exclusively deal with mortgage brokers to keep their own lucrative deals and contracts. Thankfully, brokers may be able to access these premium deals for you, and you might be able to get a rare contract that few other customers would receive.
- Brokers can help manage fees: If you’re unfamiliar with the mortgage industry, or its costs, then navigating the variety of fees associated with a mortgage can be difficult to understand at first. These include things like origination fees, application costs, appraisals, sales taxes, and more. Thankfully, mortgage brokers can assist with getting lenders to waive fees, which can potentially save you thousands of dollars.
The Cons of a Mortgage Broker
- An inexperienced broker may not get the best deal: Some brokers are still learning the ropes to their specific industry, and because of this, they may not be as privy to better deals offered by lenders. Additionally, this lack of connections may affect who your broker can contact for a loan in the first place. To prevent losing out on great deals, we recommend going to an established broker with specific experiences you can easily vet.
- Some brokers may charge fees: Depending on the broker or firm, you may need to pay specific fees for privatized mortgage broker services, or certain fees related to mortgage rates, interest rates, or other factors. Regardless of what you’re charged for, understanding the full cost breakdown of your broker is important to securing a great mortgage.
Still unsure if a mortgage broker is right for you? Are you simply trying to find a great mortgage broker in the Toronto area? You can contact Northwood Mortgage™ today. We offer some of the best rates, options, and contract terms for our customers and clients, and we ensure that your satisfaction comes first. Contact us for a free consultation on your mortgage and other important information. You can also call us at 888-495-4825.