8 Tips for Choosing the Right Mortgage Broker

Finding the right mortgage broker to entrust with the task of acquiring a loan for a property is a crucial task. That is especially the case for first-time homebuyers who will have difficulty landing a sufficient mortgage directly from a federal bank. Many people opt for a broker as opposed to directly applying to banks and credit unions because there is less hassle and the possibility to secure better rates. But how do you choose the right mortgage broker to handle the processes of your mortgage? Let’s take a look at 8 things you can do to connect with a mortgage broker that will help you get the mortgage of your dreams.

Ask for Referrals

Friends, family, colleagues, and acquaintances will certainly have experience with a mortgage broker and gladly offer their recommendations. Likewise, they’ll help you steer clear of mortgage options that aren’t that reliable or beneficial. This is a great place to start since you can look into mortgage brokers who have worked directly with someone you know instead of scrolling through the internet for hours, not knowing where to look.

Get Your House in Order

Before you go searching for a mortgage broker in Canada or anywhere else in the world, take a look at your finances. There are some things that need to be done before you even sit down with a mortgage broker. That includes looking at your credit score and improving it as much as possible beforehand. Additionally, understand what location you want to look for a property in and what your main sources of household income will be during the time of the mortgage. Don’t reach out to brokers before you have a firm grasp of your current financial standing and expectations. ‘

Look at Client Reviews

Don’t hesitate to do some searching around and reading through client testimonials of the mortgage broker you are considering working with. Thankfully now there are endless platforms where you can find such information, ranging from social media to search engines. Look for reviews of clients who have similar needs and expectations as you and see how well they rated the services of the mortgage broker. This will give you some understanding of who’s public profile is stronger if you are stuck between a few options.

Consider Their Experience

While you are looking into their services and portfolio, take a look at how many years they’ve been working in the industry. Newcomers to the industry aren’t necessarily bad at their job, but those with years or even decades of experience will have far more connections with banks, credit unions, and lenders. That means they will be able to not only provide you with more options but ones that are better in line with your needs simply due to their years and years of professional experience and networking.

Focus on the Options

One of the tell-tale signs of a great mortgage broker is the possibility to offer you multiple options for a mortgage. If you opt for one that gives you limited options, then it’s a sign you should consider reaching out to other brokers as well since you are likely not getting the array of options that you deserve.

Fees and Rates

Without a doubt, it’s important to consider the actual fees, rates, and requirements for the mortgage proposed by your broker. Each broker has a different fee which can range from 0.5-2% commission along with the actual associated costs of your mortgage. Don’t accept the first offer you get and look into who is offering you a better rate. In general, opting for the help of a mortgage broker should ultimately be most cost-efficient for you which means Be wary of offers that sound too good to be true though.

Individual vs Brokerage

Consider whether you want to work with a broker from a brokerage or an individual professional. Essentially, there shouldn’t be a large difference between the two since in either case, the broker needs to be a licensed professional. One way a brokerage may have leverage over individuals is that they may decide to individually vet the brokers in their network and connect you with one who has more experience. That isn’t to say you can’t find an experienced individual broker who isn’t tied to a specific brokerage. Having this in mind, you can determine if you have a preference for one or the other to narrow down your search.

Concise Communication

You can talk with several mortgage brokers at once to see which option is the most compatible with your needs. During those initial conversations, pay attention to how well the broker communicates complex details of the process with you. The mortgage process is a complex web to navigate, especially for first-time homebuyers. If you realize that your broker is only making it seem more confusing instead of easier to grasp, then you may witness things lost in translation along the way. To avoid miscommunication and discrepancies down the road, opt for a mortgage broker who explains everything to you in understandably.