Busted! Don’t Believe These Myths About Mortgage Purchase!
While the home-buying venture is in itself a complex procedure, the mortgage application process can make it even more tedious and taxing. There are also many misconceptions floating around mortgages and mortgage brokers that discourage clients from enlisting the services of a mortgage broker, further affecting their mortgage application adversely.
To help you steer clear of these misconceptions and to ensure that you get the best mortgage products to fulfill your dream of homeownership, Leanne Gould Mortgage Broker has debunked some of the most widely believed myths about strength training.
Myth 1: Clients have to pay to use a mortgage broker
I believe that people think this is true because they hear and pass on false information or horror stories about private loans and loan sharks. However, most mortgage brokers’ services are paid for by the lender who approves your financing. In some situations, such as with private lenders they do charge a lender fee for their services, but A lenders do not. I also like to point out that mortgage brokers are paid on commission so, unlike the banks, many mortgage brokers don’t get paid until you get possession of your home. No approval for you, no income for the broker. This means they will reach out to any lenders available to them, which opens up many more opportunities for you, the buyer. The mortgage broker will provide options and you make the final decisions.
Myth 2: You only need a mortgage broker if you have bruised or bad credit
Actually, quite the opposite is true. In fact, a mortgage broker can work with all credit types including good credit. The lenders we have to work with are dependent on your credit history but we will get you the best solution to your particular situation. In some cases, the better your credit the better the rates can be.
Myth 3: Banks work in your best interest.
I feel the biggest mistake clients make is assuming their bank will always have their best interests at heart. Many times I have spoken with clients who say the bank offered me a rate of “x” and said this is the best of the rates out there. I like to say the rate isn’t all that is important in a mortgage, however for most, it is the key issue. Most mortgage brokers like to advise clients of the different charges and payout penalties if using fixed vs. variable terms as well. If the client went back to that same banker and said that their mortgage broker can get me a lower rate, the bank will match or beat that rate. The fact that the bank didn’t offer the best rate upfront would make the client return to the broker for honest service, yet many take the bank rate and pay much higher penalties to break the term should their family situation change and they upgrade or downsize. The best way to avoid these costly mistakes is to talk to your licensed mortgage broker and make educated decisions.
As a reliable and experienced mortgage agent, I offer a variety of mortgage services, including construction or draw mortgage, mortgage renewals, mortgage refinance, home equity lines of credit, business for self mortgage, rental property finance, and alternate or private lenders amongst others. I can help clients find a mortgage that suits their needs and fits their budget and ease their home-buying journey. I serve across Wetaskiwin, Ponoka, Bashaw, Lacombe, Blackfalds, Rocky Mountain House, Sylvan Lake, Red Deer, Stettler, Innisfail, Bowden, Olds and Didsbury, AB and across Canada.