When looking to purchase a home, many people opt for either mortgage broker or lender services. Both provide various mortgage products and help you locate the ideal loan, but each has their own advantages. When selecting which type of mortgage professional is best suited for you, take into account your individual situation and objectives.
Mortgage brokers can be especially useful for borrowers with special financing needs, such as those with damaged credit or low household incomes. Many of these professionals have connections to lenders that may enable borrowers to secure loans with fewer qualifications than what they might otherwise qualify for.
Mortgage brokers possess an intimate knowledge of available lending programs and can advise you on which mortgages may be available in certain locations. For instance, if you live in a remote area or need to purchase a multi-family property, they may be able to suggest lenders with low down payment options and flexible interest rates.
Mortgage brokers collaborate with a range of financial institutions, such as banks and credit unions. Additionally, they may provide access to specialized lenders that cater to certain groups of homebuyers such as military service members or those with poor credit histories.
The industry can be demanding, but those who remain dedicated and work hard will reap the rewards. This career opportunity is ideal for those with a strong sales or customer service background, excellent organizational abilities and an eagerness to build relationships with clients.
Licensed professionals must complete continuing education classes annually in order to keep their licenses current with changes in mortgage regulations. These requirements help prevent questionable lending practices that could destabilize the market.
Mortgage Specialists possess more knowledge about mortgage products than bank staff and are better qualified to guide clients through the complex process of selecting the appropriate loan. With their training and expertise, they are better able to explain complicated terms and loan products clearly, plus they can negotiate on your behalf for you to get a competitive rate.
Some Mortgage Specialists are also trained to cross sell other bank services like credit cards, insurance and RRSP’s. While this can be beneficial, it may also feel overwhelming and pushy.
Furthermore, mortgage specialists may charge higher interest rates than other banks due to the commission they receive for referring customers to a lender’s products. This could cause issues if homeowners want to switch lenders in the future.
Mortgage brokers in Canada must abide by strict regulations set out by the Government of Canada in order to keep their license. They must register with the Nationwide Multistate Licensing System and Registry (NMLS), as well as adhere to industry-wide standards for ethics, professional conduct and customer service.
Mortgage loan officers usually possess more expertise than bank staff about mortgage products available in your region and across America, as well as an in-depth knowledge of local regulations. They can be invaluable resources for homebuyers seeking information about what mortgage options are available to them.