Should I Use a Mortgage Agent and Mortgage Broker

What is a mortgage? 
​Reasons to use a mortgage Agent or mortgage Broker

What is a Mortgage? 

A mortgage is a type of loan that is used to purchase a property or to buy a home. The property is the security for the loan. A mortgage allows the lender to legally take possession of the property if you don't pay this is also called a foreclosure. A mortgage is usually a large loan that is paid off over many years. Mortgage payments are a combination of interest and principal payments that are made by the borrower to the lender on a regular basis either weekly, bi-weekly, accelerated bi-weekly or monthly. Note: A mortgage is a complicated legal document, a mortgage agent can show you and explain in detail all the different elements that may buried in the mortgage terms.

Wether you are a first time home buyer looking to buy a home in Whitby, looking to refinance your current mortgage in Oshawa or looking for an investment property to buy in Ajax or Pickering. Unless you have enough money on hand to pay in cash for a home you will require a mortgage. You can either go directly to a lender yourself or you can enlist the services of a mortgage agent. A mortgage agent can be a huge asset to help you find the best mortgage product available for your specific situation. 

What is a Mortgage Agent or Mortgage Broker?

There are several potential benefits to using a mortgage agent or mortgage broker to obtain a mortgage I will list several of these benefits below. A mortgage agent or mortgage broker acts as a liaison between the mortgagor (the buyer) and the mortgagee (the lender). A competent mortgage agent will help you find a mortgage with the best terms and rate available based on your credit, income, down payment and employment status etc. Other than finding you a good rate a mortgage agent will also help you compile, review and organise all of your documents to be presented to the lenders. If there are any issues with your documents a mortgage agent will advise you on the best way to correct or address any inconsistencies before it is presented to the lenders. This service alone can sometimes be the difference of being approved or not. A good mortgage agent will also assist you with an appraisal if required with the lawyer and help you all the way up to and including the closing of the mortgage. 

Free Mortgage Advice and Free Mortgage Evaluation 

Most of the time a good mortgage agent will not charge you anything for advice. Such as crunching your numbers to let you know upfront how much mortgage you can qualify for. They do this to obtain your business and to hopefully create a longterm relationship with clients. Mortgage agents can save you time and legwork as they have extensive knowledge of where to find the best mortgage rates, mortgage products and have access to several different mortgage lenders.
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A Mortgage Agent will help you get approved and potentially save you thousands

A good mortgage agent will help you organise the required documents in a way that will allow you the best chance to be approved by a lender and achieve the goal of securing the mortgage. A mortgage agent will have established relationships with different lenders and will present your file to several different lenders. They will negotiate on your behalf and encourage lenders to compete for your business and help you achieve the best possible deal available to your specific situation. This will result in more options for you and could potentially save you thousands of dollars over the life of the mortgage. When you walk in to the bank to ask for a mortgage, you are on your own and honestly most people only have general knowledge of what is required to obtain an approval. A good mortgage agent will make certain your application is as ready as it can be to allow the best chance for approval.

How Much Does it Cost to use a Mortgage Agent or Mortgage Broker? 

Most of the time the mortgage agent is paid a commission from the lenders and will not charge you for their services. Although sometimes a mortgage broker will charge you 1%-3%. This broker fee will be charged if your mortgage qualifying situation is a difficult one or if the agent is required to get your mortgage financed through B and C type lenders. In layman's terms, If you have good credit, income, equity and job security you will qualify with an A lender and the mortgage agents services will cost you nothing. If you have bruised credit, a unique borrowing situation or other complications with your documentation the mortgage agent will charge you a fee for their services. Note: Any competent mortgage agent will advise you UPFRONT of any broker fees immediately after evaluating your situation and before submitting your documents to any lenders or before committing you into any product or mortgage agreement.

My name is Tim Deering and I am The Mortgage Locator - I never charge anyone for advice or for a mortgage consultation. I will take the time to explain the details and walk you through the process. I will work diligently to earn your business and to help you achieve the best possible deal. I am in this business for the long haul and my goal is to make you so happy that you will send me all of your friends and family when they also need a mortgage.