Are you missing out on the best mortgage solution because of mortgage broker myths? Here are 5 mortgage broker myths as well as the myth-busters:
Myth 1: You need to pay to work with a Mortgage Broker
A mortgage broker is usually paid a referral fee by the mortgage lender such as a bank, monoline lender or credit union. Working with a mortgage broker is completely free of charge for you and you get to work with a professional who is working with your best interests in mind.
Myth 2: Your bank will get you the best rate, so you don’t need a broker
Unfortunately, even being a long time loyal customer the banks don’t always offer you their best rate. A bank can only offer you their own mortgage products. A mortgage broker can offer you a variety of mortgage products from a network of lenders. They will find you the best mortgage product for your situation, at the best rate available.
Myth 3: You only need a Mortgage Broker if you’ve been turned down by your bank
With access to multiple lenders including banks, a mortgage broker can find solutions to your mortgage needs that one lender alone cannot accomplish. Mortgage brokers have specialized lending options such as alternate income sources (child care benefit), borrowed down payment, and maternity leave income.
Myth 4: Applying with many lenders will destroy my credit
While it is true that multiple credit inquiries in a short period of time can drop your credit score, that is not true when you work with a mortgage broker. A mortgage broker can apply to multiple lenders with just one credit inquiry. Shopping to 4 banks on your own would mean 4 applications and 4 credit inquiries.
Myth 5: Mortgage Brokers work for the lenders⠀⠀⠀⠀⠀⠀⠀
Although mortgage brokers build strong relationships with potential lenders and receive a referral fee from lenders, a good broker is always focused on the needs of their client and negotiates on behalf of their client to see that those needs are met.⠀⠀⠀⠀⠀⠀⠀⠀⠀
Still on the fence about working with a mortgage broker? If you are looking to buy a home or refinance in the Edmonton area, connect with me to discuss the benefits of working with a broker. I can also answer any questions you may have about the process, I’m here to help!
Tatum Neufeld, BComm
Mortgage Broker • Mortgage Tailors
[email protected]
780-288-0643
