About| Property Search| List Property| Advertise| Contact

RSS Feed Twitter YouTube LinkedIn Facebook Pinterest G+

Vancouver Mortgage Broker Companies – Making Homeownership Easy

by Marquette Turner Luxury Homes

in Features, Money & Business, Real Estate Radar, Variety

All over the world, different human rights organizations push for the provision of basic human needs. Governments all over the world also spend a lot of time talking about these same basic human needs.

Depending on whom you ask, the list of basic human needs could have four, five or more items. However, regardless of the number of items on any of the lists, one thing remains a constant through them all and that is accommodation or shelter.

Every human being needs adequate shelter and this is what makes mortgage a very important financial service. Without this service, most homeowners today will not have the privilege of having that title.

Getting a mortgage loan is not always the easiest of processes. Many folks have only been able to have their home purchase financed because they were smart enough to seek the loan through an intermediary – a mortgage broker.

In this article, our focus will be on the mortgage broker and how this intermediary can help make your homeownership process a lot easier.

Mortgage deal

Understanding what Mortgage Brokers Do

A mortgage broker is an intermediary who helps arrange home purchase financing. They do not offer any loans themselves, they just link borrowers to lenders that best fit their needs or situations.

Here’s a scenario, a couple meet a broker because they want to purchase a home. Remember that they are simply playing an intermediary role. The first thing they will do is get as much information as they can from the couple.

Based on a number of factors including but not limited to records of income, employment, credit score, amount required, assets and other information that can provide some insight into the couple’s financial standing, the couple’s loan request will be submitted to the financial institutions most likely to be willing to offer this loan.

The broker does not work with just one lender. S/he works with a lot of them, choosing which is the most appropriate at any given time. Note that it is in the interest of this intermediary that the application of the borrower is approved. The reason is that they only get paid when the loan is offered.

This payment is made by the financial institution and it is known as an Origination Fee. You can learn more here.

Mortgage broker deal

Why Do You Need a Broker?

Do you know everything you need to know about how or why loan applications are disapproved? Do you have a relationship with lenders that will allow you know exactly what requirements each one is likely to accept for a loan application?

If your answer to all of the above was yes, they you do not need a mortgage broker. If however your answer was no, then you need one.

Remember we mentioned earlier that they are intermediaries. They stand between the borrower and lenders (emphasis on the plural). When you as an intending borrower present your application, they look at it carefully and based on the information they are able to gather, they link you up with the lender most likely to approve your application. They actually take care of the application process for you.

They are also in a good position to advice you. The amount you are asking for may be what will make it difficult for you to get approved. So, to put this answer in the simplest form, you need a broker to make it easier for you to get approved for your house loan.

Mortgage broker

How to Work with a Broker

Working with an intermediary in your bid to secure a mortgage loan does not mean that you have no roles to play. While your broker has a major role to play, you also have a few important parts to play.

The very first role you need to play is to do some homework and get comfortable with crunching a few numbers. For example, it will help you to know that the total of every loan repayment you have to make in a month cannot exceed 44% of your full income.

Your mortgage repayments cannot exceed 39% of your income and this is included in the 44% total loan repayment allowed from your income. Knowing these requirements will help you plan your entire finance and decide what is more important to you. If you plan on financing a car, you will do so knowing that your repayment on it will affect how much you can get on your other loan applications.

Armed with some information such as the one shared above, you then carefully choose a broker you will work with. We will look at this in a bit more detail in the next section.

Choosing a Mortgage Broker

There are a number of mortgage brokers in Vancouver. Who you choose to handle your loan application is very critical to the success of your attempt. Knowing this, you will need to put some thought into the process of choosing.

There are two types of brokers you need to be aware of. There are loan officers who work for specific institutions and there are private intermediaries who work with all institutions. These two basically do the same thing and so can both be called brokers.

However, there is an obvious advantage to having a private intermediary work on your case. Because s/he is not tied to any specific organization, you are more likely to get a better deal with them since they will be exploring offers from multiple financial institutions to know which offers is best for you.

We said earlier that brokers are paid by financial institutions for successful loans. However, these private ones we have just described may charge some fees for the added services they provide. Going with a private intermediary is therefore your best option even with the small service fees you may have to pay.

If you do not know how to go about finding one, try any of the following steps:

Referrals– Ask people around you if they know any reliable broker that they can recommend. This is always a good way to start.

Search Online– This is a second method which can also be very effective if you know how to go about it.

Check for Reviews– Reviews can be gotten physically or online. If you got a physical recommendation, the person that offered the recommendation can give you some feedback on the person they referred. If however you found some prospects online, you should check for online reviews to see what other folks have to say about the person or the company.

Conclusion

The process of applying for a mortgage loan is made a lot easier and the chances of success higher when you find and work with the right mortgage broker. Take the right step today and reap the rewards for years to come.

Leave a Comment

Previous post:

Next post: