What is a broker’s role during the buying process?
If you are buying a home, you must understand the importance of working with the right professionals to secure your new property. We often think about real estate agents and lawyers as those essential experts, but we’re here to discuss a mortgage broker’s role in your journey. Why are brokers so important for home buyers? Here are some areas your broker can guide you through as you navigate today’s housing market.
Evaluate your finances
Before you can do much else in the housing market, you need to understand your financial situation. After all, your personal finances will heavily influence your flexibility and options in the market. However, many people find it hard to actually analyze their money and get to the root of their purchasing power. Between your income, expenses, assets, debts, credit score, and ongoing market shifts, it’s very common for Canadians to feel overwhelmed and confused.
Part of a broker’s role is getting involved before you even enter the housing market. When you meet with a mortgage broker, they will take the time to get to know you, your buying goals, and your finances. They will evaluate all factors that impact your budget, and can tell you where you might stand in the market. More importantly, brokers can help you get pre-approved for a mortgage, which is a fantastic indicator of your buying power. While a pre-approval does not guarantee mortgage financing, it gives you a glimpse of what you may qualify for based on your current situation. All of these evaluations will begin when you meet with your broker for the first time.
Understand your mortgage options
Once you have a feel for your finances, you will want to know how they fit into the mortgage market. Another key part of a broker’s role is evaluating how different mortgage products might suit you. There are several types of mortgages out there, such as fixed-rate, variable-rate, private, open, closed, etc. These products have their own rules and rates, and their own requirements for approval. The best mortgage for you will depend on your risk tolerance, credit, income, debts, and preferences. However, you might struggle to come up with the solution on your own. Since brokers have access to the knowledge required to make these decisions, they are an essential part of this process.
Find appropriate lenders
Similar to mortgage products are the lenders who provide them. Brokers also evaluate how their clients will work with certain mortgage lenders. You may think the best product is the one with the lowest rate, but this is not always the case. For example, having proper support and flexibility are equally important when searching for the right mortgage. Just because something is the cheapest, that doesn’t mean it will be the best fit for you. Mortgage brokers are able to assess your needs and match you with an appropriate lender. You also don’t have to worry about the possibility that a broker will push you towards a certain lender for financial gain. Brokers are paid a standard rate across the industry, so they truly only work to serve their clients!
Unwavering guidance from start to finish
The most important part of a broker’s role is supporting their clients throughout their purchasing journey. Buying a home is a huge decision, and you need to have the guidance of an industry expert on your side. Mortgage brokers are with you from the moment you book your first appointment, and they will stay by your side long after the sale on your new home closes. A huge advantage of a broker is you can always contact them for guidance, even once you are out of the housing market. Refinances, renewals, and debt consolidation all involve brokers. When you work with a broker, you will never be on your own in the market!
A mortgage broker’s role covers a wide range of products, clients, and financial services. However, if you are buying a home, using a mortgage broker is not just beneficial, it is crucial. We are here for you every step of the way, and we are ready to help you get the product you deserve.
If you have any questions about your mortgage, get in touch!
