Monday, June 6, 2011

5 Benefits to Using a Mortgage Broker

Are you ready to start exploring your financing options for purchasing a home? While there are many different types of loans available to select from, one of the first things you will need to determine is whether you want to work with a mortgage broker or with a bank. Here's a look at some of the benefits associated with working with a broker rather than a bank.

Benefit #1: A broker Works for You

Perhaps the greatest benefit to working with a mortgage broker rather than a bank is the fact that the broker works for you. When you go to a bank to secure a mortgage loan, the bank specialist is solely concerned with the interest of the financial institution. The mortgage broker, on the other hand, is looking out for your best interest as he or she searches for the loan and institution that is best for you.

Benefit #2: Choose from a Wider Variety of Institutions

When you go to a bank to inquire about a mortgage loan, the bank specialist is only representing one financial institution. When you work with a mortgage broker, on the other hand, he or she works with a wide variety of different institutions. As a result, you have a broader range of loan options to select from. Not only can this help you get the best rates, but it also increases your chances of obtaining approval even if you have poor credit.

Benefit #3:brokers are Highly Trained

While bank specialists do not require any formal training or license, the same is not true of mortgage brokers. In fact, most Provinces require mortgage brokers to meet a strict set of requirements, Furthermore, mortgage brokers must be licensed and must complete continuing education courses in order to remain licensed in most Provinces. As such, you can be sure the mortgage broker you work with is current on the latest real estate and mortgage financing rules and events.

Benefit #4: Reducing Credit Report Inquiries

Each time your credit report is pulled by a lending institution, your credit score may take a hit. When you work with a broker, your credit report only needs to be pulled once in order to recommend the best options. If you go to multiple banks, on the other hand, your credit report will be pulled each time you inquire into a loan.

Benefit #5: Submit Your Information Only Once

After you have submitted all of the necessary information to your mortgage broker, he or she will pass all of the required information on to those mortgage lenders that might be a good fit for you. As such, you are able to submit your information to multiple lenders while only filling out the necessary paperwork one time.

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