Advantages of a mortgage broker in Toronto
- Support a local business in your area
- Offers professional expert mortgage advice
- Personalized service for your mortgage.
- Lots of options for home loan programs
- Get better interest rates
- Save on closing costs
- They shop multiple banks at the same time.
A mortgage broker can determine what type of loan that you will qualify for. For example, there are conventional loans, FHS mortgage loans and other governmental programs for veterans, and even some VA loans. Many banks are very reserved in who they want to work with. However, a mortgage broker might be able to get your home loan if you have bad credit.
Your credit score matters.
However, if you do have bad credit, this might be the time to look at what you can do about that. If you are thinking about taking out a home loan, you can check your credit score online for free. This will allow you to see what has been reported on you and start to work to fix the issues. Maybe you have a missed phone bill from two years ago that you didn’t even know about.
Sometimes the issues are super easy to resolve and can really pack on the points to your credit score. Other times they are not as easy. There might be things that you had no idea about but there might also be things on there that you knew about. If you have large debt on a credit card, many times you can call and negotiate a payoff. This will show that you negotiated. However, it will take that amount of debt off your credit line too.
Ways to work with your credit to improve it.
There is a direct correlation between how much debt you have versus your income. You want to have a good balance. If you haven’t used credit in a while, this might give you a low credit score as well. Try taking out a credit card and using it each month and paying it off. Doing this may very likely help you raise your credit score going forward.
All this talk about credit scores, but why? When you see a mortgage broker in Toronto that will be one of the first questions they will ask. If you have a very low credit score you will be harder to work with. There are fewer options. This can be devastating to some. This is why we recommend clearing up your credit report the best you can before you try to take out any loan.
A low credit score will mean that you will most likely have a higher interest rate. This is because the lenders are taking a larger risk loaning to you than they are to those with a good credit score.
Mortgage Broker Mississauga Services
Many clients often ask us if being in the city of Mississauga precludes them from taking advantage of being a part of the deals that people in Toronto can obtain from a mortgage brokerage. The truth of the matter is that if you are looking for a second mortgage, home equity loan, mortgage refinance or just some advice on a mortgage renewal, a mortgage broker in Mississauga will be able to assist you with the same competence as a broker anywhere else in Ontario. The key is to ensure that your mortgage agent is licensed with their respective provincial body and have a clean record of doing proper business with lenders and clients alike. The lowest mortgage rate is not always indicative of a great broker in Mississauga nor does it mean that the lender you will be borrowing from is reputable. There is a lot of work and scrutiny that is put into a mortgage refinance contract and it is up to you read the terms and conditions and know what you are signing. Some mortgage brokers are better than others and will ensure they vet their lenders prior to referring them your business and others not so much. Again, the current mortgage rates should be but just one factor when determining the suitability for your borrowing decision. If you can, it always makes sense to start with your primary bank to see if they will lend you the money. The reason being is that the cost of borrowing in these cases can be relatively lower than having to borrow from lets say a private lender. Private mortgages are expensive and should be the last resort when looking for money against your home. The fees associated with a private mortgage can extend well into the thousands of dollars just for the privilege to borrow from such a lender. There are also legal and broker fees that you must consider that eventually to add up. In Mississauga, it makes sense to deal with a broker that has experience in subprime and private mortgage lending to be sure you get the best terms and interest rate where your refinancing is concerned.
Generally, a broker should be compensated by the lender for referring your business to them, but this is not always the case. The brokerage fee can then be a separate fee altogether that is take off the top of the equity when you borrow on a second mortgage per say. The fees paid to the agent are well worth it if you consider the advice and the loan options they bring to the table. Left to ones own devices as a lay mortgagor, most would be left fumbling around with banks who would decline most of mortgage applications, leaving us with multiple credit bureau inquires that would reflect poorly on our credit rating. There are even more high quality lenders that will only accept business from a brokerage and will not entertain any applications off the street. This is where a star professional in Mississauga, Ontario and be of assistance where a new mortgage is concerned.