What are the pros and cons of working with a West Island mortgage broker?

We can talk about how technology is connecting the world and enabling personalized service across the board. However, there are many reasons to work with a local service provider, and they are especially true when you’re dealing with major financial transactions. What are the pros and cons of working with a West Island mortgage broker?

The Pros of Working with a Mortgage Broker

A mortgage broker West Island based is available for local residents. They don’t just respond to phone calls, emails and video conferencing. You can show up with paperwork and review it line by line. They can help you fill out the paperwork and send it in to lenders. Learn how to fill out paperwork to maximize your odds of being approved of the loan or qualifying for the best mortgage rate. They may even come with you to the financial institution to answer questions about the loan, whether it is during the application process or the review of the closing paperwork.
Mortgage brokers can tap into a much wider array of lenders than your local bank. They may find lenders who won’t charge a premium for what conventional lenders consider a higher risk loan such as buying a vacation property, building a mortgage helper in the basement with a cash-out refinance of your home or when a small business owner wants to buy a home.

The Cons of Working with a Mortgage Broker

Mortgage brokers are small businesses. They may offer personal service and a wide array of options. Or they may have poor service because they’re trying to run the business out of their back living room. They might charge high fees because they’re really bundling loans for a small number of second tier lenders. It is the situations like the that cause some to pay more for their home loan than necessary, and it gives mortgage brokers in general a bad name. You can avoid these horror stories by doing your research about the mortgage broker’s mortgage lenders and customer service. Choose a mortgage broker West Island residents recommend from personal experience to know you’re talking to the best in the business.

Observations about Working with a Mortgage Broker

There are too many people who don’t understand what mortgage insurance is. They unnecessarily fear it. Mortgage insurance is simply a modest premium you pay to offset the lender’s higher risk when you’re buying a home without 20 percent equity. There are people who take out a high interest rate loan to cover the difference between their down payment and the 20 percent equity threshold. They then end up paying interest on that loan for years, resulting in a higher overall payment than they would have had with mortgage insurance.
Note that mortgage insurance phases out once you have 20 percent equity in the home. And taking out a second mortgage to cover that difference followed by rolling it into the main home loan can add to the total interest you pay over the life of the loan. While you can ask a mortgage broker to help you come up with a loan or series of loans to avoid mortgage insurance, don’t rush to the conclusion that mortgage insurance should be avoided at all costs But don’t blame the mortgage broker if that is what you sign up for, assuming you’re fully informed about the costs involved. This is another reason why you want to work with a mortgage broker West Island neighbors refer by word of mouth instead of an internet search.

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