Save Money By Using a Mississauga Mortgage Broker

Why use a Mississauga mortgage broker? There are many advantages to using a mortgage broker. He offers a wide choice for choosing the right type of mortgage and the right lending institution for new and savvy customers alike. When dealing with banks, the customers need to choose only the mortgage that is offered by the particular bank, however, a mortgage broker offers them a wide variety of choices from multiple institutions.

A mortgage broker in Mississauga has great expertise in financial industry and can hence provide a good host of services than any other bank. He helps the customers to find the appropriate mortgage for them, provide the access to large numbers of lenders all over the province to their customers, offer a mortgage calculator that will be helpful for the customer to decide the particular amount of money that they can borrow, provide details about various types of mortgages such as fixed rate, variable, second mortgage, mortgage refinance, etc.

A Mississauga mortgage broker may arrange for the good survey organizations to utilize, end the paperwork, prepare legal charges, and provides advice that is associated with the mortgage. These facilities are not provided by the banks. In addition to this, these brokers also assist their customers in choosing the right additional amount including mortgage protection insurance. The majority of the home buyers believe that the amount they spend for a mortgage broker could save them a large amount of money than using a bank service.

All the mortgage brokers try to maintain a big contact list, where lenders are concerned. When home purchasers utilize the help from a bank, they need to search for the right terms on their own. However, a mortgage broker will be doing this job on behalf of the customer in a proactive manner. He works along with the home purchasers for researching their economical and credit conditions and provides them with the right choice of a lending product and banking organization from their contact lists to facilitate mortgage funding. Home purchasers need to provide their desired terms and rates to a mortgage broker to find the right lending organization and rate that is applicable to their circumstance.

Therefore, there is no doubt that the response to the question “why use a mortgage broker rather than a bank ? ” is a big yes. A great mortgage broker to work with in Mississauga:

Mortgage Broker Mississauga- Expert Mortgage
2898B Constable Rd, Mississauga, ON L5J 1W8
(289) 201-5158

Why use a mortgage broker rather than a bank?

Why use a mortgage broker rather than a bank? Whenever you go loan shopping, you will find many options in the market where you can get mortgage loans from multiple providers. If you were to ask a large majority of home buyers, you will find that majority of them with good credit scores always prefer dealing with and acquiring their mortgage from the bank. But this may consume a lot of your time, given, the banks back log. Different banks have their own rules and regulations which you need to research before accepting the deal. You may be doubtful of the mortgage deal – if it is indeed fair or not, especially when applying for a home loan that has a long tenure.

Mortgage brokers who work as an intermediate between the lender and the consumer have fairly good knowledge of all such deals in the marketplace. They are in this business and their earnings depend upon such successful deals and mortgage origination and closures. They know the in and outs, along with rules and regulations associated with mortgage borrowing in the province. The time you will spend visiting one bank to another bank will safe you a headache, because you get ready-made material mortgage solutions when dealing with a broker. Since you don’t have to spend any money on these services upfront, it could be a wise decision to try them out. In most instances they get their commissions from A lenders.

Certain people may ask you” why use a mortgage broker” as the trustworthiness of such brokers is always doubtful. But some of them have a very good reputation with all the major banks; they always are ready to provide excellent services to their clients. They can get you very good deals especially on long-term loans, like home mortgage loans. But it is entirely your personal choice to choose the path for obtaining a loan.

Some of the banks prefer to work directly with the clients, as this saves them on mortgage fees, which they have to pay to a mortgage broker. They would not like the use of a middleman in certain instances, where they have a mortgage sales force pushing their products. For those who have low credit scores, banks normally will not entertain the clients application. Such situations require the assistance of a middleman such as a mortgage agent. Sometimes an agent can get a great mortgage at a very good rate and also provide customers with cash back incentives.

Important Things Mortgage Brokers Look For On Your Credit Report

It is your right to be able to shop around for the best possible mortgage, the same way you would a car or any other big-ticket item. Mortgage brokers love to tell you after they have just pulled your credit not to let any other mortgage companies pull your credit because that will lower your scores. By doing this they are looking out for your best interest to ensure you get the mortgage loan product that suits your individual needs.

When a Mississauga mortgage broker pulls your credit to analyze your credit report, your credit score is not the only thing a mortgage broker looks at.

The first item I look for at the top of the credit bureau is the percentage of revolving debt you are carrying on your credit cards versus your total credit line. In other words, are your cards maxed out? Revolving credit is all your credit cards.

What is the first thing we all do when money is tight? We rack up our credit card debt. A high percentage of credit card debt is a leading indicator when someone is getting into trouble with his or her finances. The credit bureaus are well aware of that fact.

When someone’s revolving debt goes above 50% of their total available credit line for all their credit cards, bells and whistles start going off at the credit bureaus. If you get one late payment on your mortgage or credit cards when your revolving debt is maxed out; the bureaus will swoop in quickly, dramatically lowering your credit scores.

Be aware of your credit lines for all your credit cards and try to keep the balances below 50% of their high limits.

The next thing I ask myself when looking over a customer’s credit report is have there been any late payments on the mortgage history in the last year? The bank considers you late if you have not made your mortgage payment within 30 days past the due date.

Making the mortgage payment on time is more important than any other bill as it carries the most amount of weight with the credit bureaus. It also keeps a roof over your head!

Fortunately, late payments are not held against you once 12 months have gone by from your last late payment. In this biz when someone has no late payments in the past 12 months, we call this a “0 by 30”. If someone has one late payment in the past 12 months, that is a 1 by 30. Two late payments is a 1 by 60. Three late payments is a 1 by 90 and four months without paying your mortgage is a 1 by 120 and is also considered by many banks foreclosure status. After five months of not paying your mortgage, almost all conventional banks will send you a (NOD) Notice of Default and begin foreclosure proceedings.

The last important item that I look at on a credit report is the credit scores, also known as your Fico scores.

The three major credit bureaus that almost all banks use to determine your credit scores are Equifax, Trans Union, and Experian. Banks and mortgage brokers pull a tri-merge credit report to see what all three bureaus are reporting. Once the three scores are obtained, the middle score of the three scores is what is used to rate your credit.

Scores can range from 300 to 850. You have to do something bad with your credit to have a mid score in the 300’s and you would have to be a credit superstar to have your mid score in the 800s. In the years I have been in the leasing and mortgage industry I have never seen a mid score in the 300’s and only a few times have I seen a mid score in the 800s.

The line in the sand for most subprime banks is 500. If your mid score is below 500 you need to work on repairing your credit before trying to buy or refinance a home. However with the severe mortgage crisis, we are in right now, many subprime banks have raised their minimums to 525. Some will not touch a loan unless they are 600 and above. Scores below 680 are usually considered for subprime banks and scores above 680 are usually considered for A-paper banks.

There are many other factors that mortgage brokers in Mississauga look at when looking over a customer’s credit report. However, the percentage of revolving credit, mortgage history, and scores are some of the most important factors. Other important factors listed at the back of a credit bureau are any public records such as the history of bankruptcy and liens.

The Basics of Mortgage Loans

The global financial situation has made the economy credit dependent. People have become more and more dependent on loans to make investments such as buying a home of funding any major project. Amongst all the loan plans available, mortgage loans are the most sought after. “Mortgage”, when translated literally, refers to the security that you provide when you borrow money from a lender. In today’s scenario, however, they are synonymous with home loans or property loans. These are high-risk loans and also fluctuate a lot with the economy.

How do mortgage loans work?

With mortgage loans, the house or the property that you buy from the loan becomes the security against the loan amount. In case you are unable to repay the loan in the future, these loans allow the borrower to take your property as compensation. These loans demand such high security since the lender takes a lot of risk in sanctioning the loan amount to you. Mortgage rates fluctuate largely with the market and so do property rates. As a result, lenders are at higher risk with such loans and will only entertain credible borrowers.

Eligibility for mortgage loans

There are a lot of factors that determine whether you will get a loan or not. Lenders will check your current financial situation, your credit history, and also your income from all sources before they sanction the loan to you. The mortgage rates are determined by several factors such as the sum you are borrowing, backlashes in your credit history, and even the current and predicted economy. There is only one underlying principle with mortgage loans – the higher the risk, the higher is the interest rate. All the financial institutions will calculate possible every possible risk involved and determine the interest rate.

Getting a good loan

As a borrower, you should compare all the deals offered by different institutions and choose wisely. In case you are inexperienced with finances, you can hire a mortgage broker in Mississauga who will scan all the options available for you and get you a loan that suits your need and current financial ability. With a broker, there are a few additional costs involved but you are in safer hands because the broker helps you understand the terms of conditions of different loans. So, you can make a better choice. Although banks are the best possible mortgage lenders, you can also approach government institutions to offer you mortgage loans. They sometimes offer better deals and will also help you in the application process with their in-house agents.

Deciding on a loan

You need to be clear about three things when you borrow a mortgage loan – your requirement, your repayment ability, and the tenure of the loan. In addition to a Mississauga mortgage broker, you can also consult financial experts who will give you all the information that you require on these loans. Be aware of the current mortgage rates and all the additional fees and costs involved in mortgage loans. When it comes to planning your finances and making investments, you should be cautious and make sure that you are not caught off guard by hidden clauses.

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