The first step towards buying a property is getting approved for a mortgage loan. There are different ways to acquire a mortgage loan. You can either directly transact with a bank or hire a mortgage broker to do the work for you.
Many people think it is costly to hire mortgage brokers so they just do all the legwork – preparing documents for the bank and transacting with the lender themselves. But this step might actually make the application for mortgage loans more inconvenient and time-consuming.
When transacting directly with a bank or lender, you are limiting your options. There are many private lending companies out there that only transact via a broker. By choosing to directly deal with a bank, you are writing off all the other lending options that might actually offer better mortgage rates.
Furthermore, a mortgage broker will help find you better mortgage deals and more credible lenders. With the expertise of a broker, you can sidestep your chances of finding lenders that might have dishonest contracts and policies.
Basically, you are taking the easier road in getting approved for a mortgage loan if you hire a mortgage broker. And with so many things that can take up your time when preparing to buy a new house, it’s less stressful to relinquish all the mortgage loan acquisition to an expert.
It is important to note that not all mortgage brokers out there, particularly in Calgary, have the best services. When choosing a broker to hire, make sure you watch out for these signs that will tell you that you are dealing with the best mortgage broker in Calgary:
1. Decades or years of experience in the mortgage brokerage industry
With years of experience in this industry, the broker has created connections with various private lenders already. How long they have been in this industry is also a clue of their expertise. The older they are, the more likely they are to have experienced handling different mortgage cases. If you have a bad credit record or you are self-employed looking for mortgage loans but traditional mortgage policies are not the best ones for you, an experienced broker can help you out.
2. A comparatively smaller firm but operated by an experienced team of brokers and headed by someone who knows the Calgary mortgage market very well
You shouldn’t just set your sights on mortgage brokers from a big company. Smaller, more localized firms are just as great, even better to deal with because they offer specialized services to their clients. It is easier to talk with these brokers and easier to develop a great working relationship.
3. Has proof of their qualifications
It is a must to look for credentials. Find out where they got their qualifications and do some research to determine if the qualifications they are flaunting are real.
4. Can explain to you the process of getting mortgage loans properly
If the mortgage broker can’t even explain in a manner that is easy to understand the process of acquiring mortgage loans, especially if it’s a difficult loan to acquire such as the ones self-employed people have to get, it’s probably not a good mortgage broker to work with.
Choose a mortgage broker that knows the ins and outs of the industry, can tell you viable solutions to your loan concerns and can tell you the best possible plan of action to take when your loan needs do not take the conventional route.
5. Can reply to your queries promptly
There’s nothing more off-putting than having to wait for days for your mortgage broker to confirm whether you got approved for the loan or not. Your broker should give you regular updates and should be readily available when you have questions.
6. Has a lot of connections with private lending companies
A well-connected broker can actually give you more options when it comes to finding the right mortgage lender. If your broker is fairly new in this industry, chances are, he hasn’t established connections yet. This is why you have to choose brokers that have years of experience already.
7. Has no bad reputation and reviews from previous clients
Calgary may be a big city but it shouldn’t be too difficult to find reviews about the mortgage broker you are thinking of hiring. If there are bad reviews, you are bound to hear about it. You can also use online to search for forums and reviews on the best mortgage broker in the city.
8. Does not ask you for a payment upfront
It is actually better to deal with a mortgage broker who gets their cut from the mortgage lender. This way, you won’t have to worry about the money you should pay for the transactions with the broker. Ask the broker about their payment scheme upfront before doing any kind of negotiation.
Be on the lookout for these signs when looking for the best mortgage broker. Compare services and don’t just settle for the first broker you can find in Calgary.