Buying a house is a really stressful process. Add finding a great mortgage on top of all that and it may seem impossible. That's exactly why mortgage brokers exist: to help everyone find a great mortgage. A great mortgage broker will stay up to date on the mortgage market, the different ways to help clients, debt management options and the best available rates. There are many factors to consider when trying to find a great mortgage. Here are three things that should be at the top of your list:
- The Product - Just like every client is different, so is their situation. It only stands to reason that every mortgage is not the same and each will have different terms and conditions. It is important to read the fine print and determine what mortgage will fit with what situation. This is where a mortgage broker comes in. They are well versed on reading a mortgage to determine what it offers - or doesn't. They will look for things that are important to you such as prepayment privileges, portability and penalty calculations. Prepayment privileges allow the borrower to pay ahead of the payment schedule without incurring fees, while portability allows for the transfer of a mortgage from one house to another. If the borrower decides to refinance their home in the future, depending on their payout penalty calculations, they could end up paying a lot. By neglecting to learn about their terms, the borrower may find themselves spending money needlessly.
- The Lender - There are many different kinds of lenders who can broker a mortgage. They range from banks, credit unions, monoline lenders, alternative lenders to private lenders. A mortgage broker is knowledgeable about the lenders in this network and will work to find the ones that will work best for their client's particular situation. The potential borrower should also do some research to determine if the lender provides good service and is accessible.
- The Rate - Many clients often think this is the most important part of the mortgage, but they couldn't be more wrong. A low rate doesn't necessarily come with the lowest overall cost. Although rate does determine the monthly payments, a slightly or even marginally higher rate may have better terms and conditions.
Overall, the mortgage needs to examined as a whole. Each of the above goes into making a great mortgage that fits a borrower's needs. When you start your journey, it is important to remember this. Try not to get caught up in chasing the lowest rate that is currently available and instead remember that you are looking for a mortgage that fits your specific needs.
Questions about how to get started? Contact one of our Winnipeg Mortgage Brokers today at 204-928-7722 or by email at firstname.lastname@example.org.
Source: Three Best Rated via newswire.ca