Pros and Cons of Using a Mortgage Broker in Edmonton
When you begin shopping for a mortgage there are many people who will enlist the services of a mortgage broker in Edmonton. However, with recent issues in the economy, there are many people who now scrutinize if these individuals are working for their customer’s best interests. When you work with a competent and experienced mortgage broker, it can help you to find the right mortgage; however, there are both pros and cons that must be considered.
Pro: Minimizes the Legwork
Since mortgage brokers have contact with a number of different lenders all the time, they likely know things about the real estate industry, what’s for sale and other information that you don’t have access to. The alternative to deciding to work with an established broker is to call dozens of different lenders and then compare the rates and terms they have set for mortgages. Brokers will save you a significant amount of time.
Con: Interests May Not Align
When a mortgage broker is hired, their interests may not align with yours. The ultimate goal when shopping for a mortgage is to find one that offers low fees and an affordable interest rate. You will be in it for the long haul. The mortgage broker will often receive a fee from the lender that they get the business for. This fee may be based on the total amount of the loan. This means the broker’s goal will be to get you in a mortgage that will maximize their total compensation.
Pro: Brokers Have Much More Access
There are a number of lenders who will work only with mortgage brokers and will rely on them to essentially act as a ‘gatekeeper’ to find suitable clients. There are some lenders that may not be willing to work with a borrower directly. Brokers may also have special rates from a lender because of the amount of business that they are able to generate.
Con: You May Not Have Access to the Best Deal
There are a number of homebuyers who may assume that a broker will be able to deliver a much better deal than what they are able to get alone; however, this is not always the case. There are some lenders who will offer homebuyers the exact same rates and terms that they provide to mortgage brokers and in some cases even better. It can’t hurt to shop around on your own in order to see if the broker is really providing a better deal.
Sky Financial Corporation in Edmonton offers additional information about working with a mortgage broker. Being informed can help you make an educated decision about whether or not this is right for you.