How to Choose A Mortgage Broker Part 1-Warnings
How to Choose a Mortgage Broker Part 1
We have been mortgage brokers for over 14 years in the Edmonton marketplace, we do mortgages now cross Canada! Over the years I have witnessed major screw ups in financing by inexperienced mortgage brokers and bankers. In this article I will outline many reasons you should avoid dealing with bankers and mortgage brokers with little experience. How to Choose a mortgage broker part 1 will outline the reasons why you should never deal with a banker or mortgage broker that has not been in business for more than 7 years
In the title of the article I stated the number of years as 7 years. If the broker or banker you are dealing with is doing low volumes then the number of years could be even higher! This is a tough business to learn and without a lot of experience and grit, the brokers you may be trying to use could cause more harm on an application than good. I will explain this in detail. At the end of the day the most important thing to you is getting approved at the best rates, and meeting your financing timelines. This is what we bring to the table, the fastest service and the easiest way to get approved for a mortgage.
Our team does bank mortgages, B mortgages and private mortgages. So we have you covered from all directions. Because we do such high volumes we get you the discounts on rates and we have the experience to work on mortgages with special circumstances such as new to Canada and self employed individuals.
11 Reasons you should never hire a mortgage broker with less than 7 years experience. How to choose a mortgage broker Part 1.
Lack of knowledge
To me this is one of the biggest reasons you should avoid using brokers or bankers wit a low level of experience. For a customer lack of knowledge can mean the difference between getting approved for your loan and not. If a mortgage broker only understands a few lenders products, they will try to fit your unique scenario in with these lenders. We have been brokers for a long time and do high volumes of loans with over 55 different lenders. This has given us the experience and expertise that you need to guide you into the right mortgage product to fit your needs.
When a loan officer does not have a lot of experience, they may not fully understand that this loan is probably one of the most important things in your life at this very moment. In my time I have earned a lot of business due to clients previously dealing with incompetent loan officers at the bank. The fact is the banks loan officers are not paid well and the turnover rate is very high. You could be dealing with a person from the bank one day and they are gone the next.
Most recently I received a call from a friend that was getting a mortgage at their bank. 2 days before the condition date (financing condition on their purchase contract) the loan officer told them that they forgot to submit their application! What a disaster. At this point there was a backup offer on the house they were purchasing and if they could not get their financing in order in 2 days they would loose the house. Thankfully I was able to get the loan done for them within their timeframe and they moved into their home. If they stuck with their bank, they would have lost the house.
3. Low volume brokers have no power with a lender
When you deal with a mortgage agent that has been in business over 7yrs you will probably be dealing with a person that does high volumes of mortgage loans with the banks. If you are not dealing with a high volume brokerage you should really seek one out, or even better call me because we do high volumes.
High volume brokers can ask for exceptions from lender that low volume lenders cannot. They also will have access to some lender and lender products that low volume brokers cannot deal with. This always works out to easier approvals, better rates and more approvals for their client. This is one thing our team brings to the table.
4. Lower mortgage rates
Experienced mortgage agent will have lower rates every time! When you work with our team you can be sure that you are getting the best rates on the market every time! The way it works is the banks work in tiers and the more volume of mortgage loans that are sent to them the bigger the discount is on the rate! We are top tier with all of the lenders so you can be sure you are getting the best rates every time!
Lack of experience will cause your loans to fall apart. For one the loan officer will take 10 times as long to get the approval done as they don’t know the ins and outs of this very complicated process. They may also not fully understand the products every bank has.
6. Lack of grit
Lack of grit is one reason a lot of loans get declined. An inexperienced broker might submit an application to their preferred lender and if it is declined they will give up. Our team does everything in our power to get the mortgage approved for you. Our process is first multiple brokers from our team look at your application and give input on where would be the best fit for each client. This ensures multiple opinions are involved in each case. We will then bring the options to our clients and you will decide which lender you would like to go with.
7. Wait who is my advisor?
This is when a person is dealing with a bank and their bankers/ Financial advisor quits or gets promoted. Who are you dealing with now? This happens every day and is a major cause of stress and anxiety for the person getting the mortgage. With our group you will be dealing with the same people as long as we are alive! We answer our phones and our emails and never ignore our clients like some bankers do. Cut the frustration and call us!
8. Don’t get a mortgage at a bank!
This is a mistake that many people make. Getting your mortgage from the bank is harder for many reasons. For one the experience is usually lacking, second the rates may not be the best on the market, and third the bank will try to fit you into their products. If you do not fit that specific banks guidelines you will be declined.
In any real estate transaction time is of the essence. If you do not meet the timelines outlined in the purchase contract you will lose the property! For our refinance clients, you are refinancing for a reason. Sometimes to get a lower rate and other times to pay out debt from your equity. Either way the longer it takes, the more interest you will pay. We get deals done fast so that our clients pay the least in interest and so that all of their timelines can be met. This takes away a lot of the stress involved in getting a mortgage loan.
10. Lower closing ratios
Getting a loan through a mortgage broker with low experience will always work out to lower closing ratios. This means they will not be able to get as many mortgages done. Because of this there can be more declines due to many factors and this causes people to miss out on owning their dream homes and causes realtors to loose deals.
An inexperience broker will never understand how important good communication is. Or they may not have the resources to have good communication. We have systems in place to ensure communication to our clients and to our referral partners.
Common questions you should ask your Banker or mortgage broker
How many years have you done mortgages?
If the answer is less than 7 years, you should get someone else. A mortgage is one of the biggest investments you will make in your lifetime and you will want to ensure you are dealing with a pro to avoid screw ups!
2. What banks do you work with?
If they work in a bank, you are limited to that banks rates and products. When you deal with a broker like us we can shop the entire market for you and find you a kick ass product that will suit your needs.
3. Do you know what areas your bank will lend in?
If they don’t know the answer to this questions, then they are inexperienced. For example in Edmonton there are some areas many lenders will not lend in. In that case I find a lender for my clients that will lend in those areas.
4. Do you offer lines if credit and mortgages all in one?
This is an amazing product that many banks do not offer. As you pay down your mortgage a line of credit will open up for you at super low interest!
Overall it is always in your best interest to have more options open to you when you are hiring a mortgage broker. Having a good broker on your side can be the difference between getting approved or not. Please call us anytime if you have any questions in regards to this. We are one of the top mortgage brokers in Edmonton and Calgary and service cross country.