close mortgage deals

How a private mortgage can help mortgage brokers close mortgage deals

How a private mortgage can help mortgage brokers close mortgage deals 1024 440 Guardian Financing

Guardian Financing specializes in private and direct mortgages. We offer custom financing solutions to help mortgage brokers and their clients, located in the center of Montreal. We are expert in the field of short-term residential mortgages, and offer loans ranging from $50,000 to $3,000,000.

What Is a Mortgage Broker?

A mortgage broker, unlike a mortgage lender, does not fund loans but instead helps you find the right lender for your financial situation. Mortgage brokers are licensed and regulated financial professionals who act as a bridge between borrower and lender.

A broker can have access to a variety of lenders, which may give you a bigger selection of products and terms than a direct lender. Working with a broker doesn’t guarantee that you’re getting the best deal, though, and you will still need to compare the terms and conditions of loan offers.

Brokers can originate loans and manage the approval process, which can save you time, but they do not close mortgages themselves.

After you choose an ideal lender, your broker will help you compile your paperwork, send it to an underwriter and order a home appraisal. Once you are cleared to close, the mortgage broker will start to prepare for closing day.

How a Mortgage Broker Works

Perhaps you want to buy a house and you don’t have an existing banking relationship or aren’t satisfied with the rate offered by your current mortgage lender. You can call a mortgage broker who works with multiple lenders to help borrowers identify the best loans and rates from a broad range of loan programs.

Using a mortgage broker can also save you a tremendous amount of time. Rather than contacting several lenders individually and poring over complicated loan offers, you simply work with a broker who determines how much loan you’re likely to qualify for and handles all of the legwork for you.

Brokers then help the homebuyer compile the necessary documentation and shepherd them through the application and underwriting process. Upon closing, the mortgage broker earns a borrower fee or lender commission of between 0.50% and 2.75% of the total loan amount—depending on the broker’s fee structure and whether they’re being paid by the mortgage lender or borrower.

How does a mortgage broker save you money on your mortgage?

Want to take out a mortgage soon? You usually have two options: you can enter into an agreement directly with a financial institution or you can deal with a mortgage broker. If you want to save time and money when buying or refinancing your property, consulting a broker is definitely your best option.

1- The mortgage broker calculates your borrowing capacity

If you have no idea of your borrowing capacity, the mortgage broker will determine it as realistically as possible. Its purpose here is not to find you the highest mortgage, but rather to find the loan that best meets your needs and your budget.

You don’t know anything about mortgage jargon? Don’t panic, the broker is there to help you see things clearly. For example, it will explain the advantages and disadvantages of fixed and variable rates without having to do long and tedious searches on the Internet.

2-It helps you prepare your file

Pay stubs, bank statements, investment statements, offers to purchase, school and property tax accounts: Mortgage lenders usually require a long list of documents. A mortgage broker will help you gather all your paperwork and ensure that the various forms are properly completed.

By being supported in your walk, you will be less stressed. You will also avoid having your application refused or delayed because you failed to submit a document or forgot to sign a form.

In addition, if you find yourself in a particular situation (you are self-employed, you have already gone bankrupt, etc.), the broker will help you prepare your file in order to increase the chances that your application will be accepted by a lender.

When you are ready to take out a mortgage, you may want to compare the different mortgage products available on the market. This process can take a long time if you do it alone. You will need to meet one by one with advisors from many financial institutions. In addition, some lenders are only open during business hours, possibly requiring you to take time off work to meet with them.

A mortgage broker saves you from going back and forth to different financial institutions. In one meeting, you can compare the best products offered by a multitude of lenders. This time saving will allow you to focus on other important tasks, such as preparing for your move.

3- Negotiates for you the best rate and conditions

Do you hate negotiating? That’s good, because the mortgage broker is a skilled negotiator. This great connoisseur of mortgage products negotiates on your behalf with a multitude of financial institutions. When he presents the various offers of lenders, you know that you have, for each of them, the best possible interest rate.

In the case of a mortgage, a lower rate will save you hundreds or even thousands of dollars annually. For example, a $250,000 mortgage at a reduced rate of 1% will save you up to $11,662.

It is all very well to have the best possible interest rate, but if the conditions attached to it do not suit us, you will not be satisfied. As a mortgage broker is an independent advisor (working for you and not a specific financial institution), they will only recommend the products that are best for you.

During the negotiation process with financial institutions, he always keeps in mind your situation, your budget, your interests and your short and long-term projects. For example, if you only plan to keep your condo for a few years, it will not recommend that you take out a mortgage with significant penalties for early repayment.

In addition to allowing you to have the best rate and conditions possible for your mortgage, the broker will ensure that you have thought about the costs associated with buying a property, such as moving expenses, notary fees and transfer duties. Some buyers tend to forget some of these fees, which can have a significant impact on their budget.

Contact us now.