Frequently Asked Mortgage Questions
What Are the Benefits of Using a Mortgage Broker vs. a Regular Bank?
While a bank mortgage officer represents the products and services offered by one specific institution, a broker has access to various lenders, including major banks, small lenders, private funds, and insurance companies. Our mortgage brokers allow homebuyers to review various options and find the best rate.
What Does a Mortgage Broker Do?
A mortgage broker acts as the liason between clients and lenders. Our broker works on your behalf to find mortgage lenders with competitive interest rates. We will work to find the mortgage that best fits your needs.
Who Pays a Mortgage Broker?
Mortgage brokers are typically paid by lenders to make referrals on their behalf, while others are paid directly by the homebuyer.
Is a Mortgage Broker Worth It?
Yes. Working with a mortgage broker allows you to shop around for lenders and find the very best rates.
What Are the Pros and Cons of Using a Mortgage Broker?
Pros:
You will be working with an expert who knows the market and who will find you the best rate.
Cons:
Mortgage brokers may require a bit of extra preparation and organization, as your broker may need you to gather documents that your bank would already have on file.
Can a Mortgage Broker Get Me a Lower Rate?Brokers have access to dozens of lenders, making it likely that they will find the lowest possible rate.
How Can I Get the Lowest Mortgage Rate?
By putting your trust in our experienced mortgage broker.
What Is the Difference Between a Second Mortgage and Mortgage Refinancing?
A second mortgage is an additional loan taken out on your home and is subordinate to your first mortgage. Mortgage refinancing is a new loan that pays off the existing mortgage. People will often refinance their mortgage to obtain a lower interest rate. Both options are used to extend the repayment process.
How Do I Choose the Right Mortgage Broker?
To choose the right mortgage broker, find out how they are paid, what experience they have, and how many lenders they have access to.
What Are Some Tips for Getting the Lowest Rates When Refinancing My Mortgage?
- Check for errors in your credit report and keep your score in good standing
- Consider a short-term loan
- Shop around and know your options
- Don’t wait for the rates to rise
What’s the Difference Between a Pre-Qualification and Pre-Approval?
A pre-qualification is the first step in getting a loan. It involves providing a bank or lender with a snapshot of your overall financial picture, including your income, debt, and assets. With a pre-qualification, you can get an idea of how much you can expect to borrow. A pre-qualification is not a detailed investigation of your finances as it is based on the information you choose to provide.
A pre-approval is more definitive. To receive a pre-approval, you must fill out a detailed mortgage application and supply the bank or lender with all necessary documentation in regards to your finances. Once the investigation is complete, you will be pre-approved for a specific amount. The amount is conditional but will give you an idea of what your loan may look like.
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To learn more about your options, do not hesitate to contact us at (416) 258-0156.
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