Should You Use an Online Mortgage Broker?

Finding a trustworthy online mortgage broker

Finding a trustworthy online mortgage brokerJust like there are many types of mortgage lenders, so are the mortgage brokers. The most important thing is to determine the type of home loan that suits your needs. The source and method of securing finances to buy a home are critical aspects of a home-buying process. Given that almost everything can be found online these days, all you need is to find out if you are eligible by filling out online forms.

How online mortgage brokers save the home-buying process

Before the evolution of e-commerce, home buyers would spend hours queuing up at the banks or booking face-to-face appointments with local brokers. These methods never guaranteed smooth transactions and higher fees were involved. You can imagine how these consultants struggled with mountains of paperwork that delay the acquisition of mortgages. Thanks to the internet, this issue was solved and it was easier for the middlemen to speed up the progress and clients finally gained control.

It would be right to say that online mortgage brokers have made the home-buying process a less-painful experience,especially for the new homeowners. The archaic methods have been streamlined, and a lot of time, money, and efforts are saved each day. Online communication gets people to do things that actually matter.

Simply put, online intermediaries solve the mortgage mess through a combination of teamwork and techniques. Searching a product online in a matter of seconds is possible, courtesy of cutting-edge technology. You can also compare mortgage rates from different lenders and choose one that fits your budget instantly. What’s more, you can rest assured of an agent waiting to reply to your queries through an email, online chats, or phone.

Finally, you can say good riddance to heart-aching and outmoded ways of finding a mortgage lender. Today, the process is quick, free, and flawless. Here is to the future of mortgages!

When I was preparing to buy a house I could raise my three kids 5 years ago, I went to a typical broker in Champlain, Quebec. He was the most famous broker in town but I found out that I was about to cough a whopping CAD$900 and decided to go online instead. Online is where you can take back control and begin the mortgage process at your own convenience. I provided the online broker with all the necessary details and he did the hardest task for me. I neither paid for any consultation fees nor did I burn fuel to meet him face-to-face. He sorted me out fast without compromising my daily schedule.

We can summarize the misery of traditional mortgage brokers as follow.

  • They operate at limited office hours
  • They charge higher consultation fees
  • Their range of potential lenders is limited
  • It takes weeks to get good recommendations

Now, compare and contrast those archaic methods with the following benefits of online mortgage brokers.

  • Free service
  • They are available on a 24-hour basis
  • A broad range of lenders
  • It takes days to get a recommendation

So, why don’t the digital mortgage brokers charge a consultation fee? You are about to find out.

How online brokers operate

How online brokers operateThese professionals work online throughout. You already know that the Canadian mortgage industry is overflowing with lenders and different products. Mortgage experts can analyze deals from 100 lenders in minutes. When they find the perfect match for your financial situation, they make an application instantly on your behalf. Since they are independent professionals, they complete the applications without any bias. They don’t favor particular lenders. That means you can eliminate the pressure of real estate agents who compel clients to go through particular lending institutions thereby giving you a limited spectrum of products in the market.

Furthermore, the online brokerage is completely transparent especially when it comes to the costs. In other words, the brokers are there to help you save money, time, and simplify your mortgage-buying process. They can have enough experience to get into the nitty-gritty so you can learn the exact cost of the mortgage. They let you know if a certain rate is better and inform you on the latest deals so you don’t have to overpay.

The reason they don’t charge hefty fees is that they’re paid by the lenders for processing applications. It is usually a percentage of the mortgage and if you want t know exactly how much, they can always tell you. But anyway, what business do you have knowing their salary?

Are there any drawbacks?

Are there any drawbacksFirst, let me warn you against online scams. To keep yourself safe from cyber thugs, avoid a broker like a plague if they pose a deal that’s too good to be true. You should update yourself on the current interest rates so you can know when you are being offered a ridiculously low rate. Many times, such cases are bait and switch and they come with upfront payments. Why should you pay for a service you haven’t received yet? You can check their profile if they have been accredited by relevant bodies.

Another drawback is that the interest of the broker may clash with yours. Obviously, you want a mortgage with an affordable interest since you will be in the boat for a long time. Interest rates differ from one lender to the next. The broker, on the other side, wants a deal that maximizes their commission. If he is not competent, he might get you into a home loan you cannot afford over time.

Conclusion

Are you looking for a competent online mortgage broker? I recommend you to get one with good reviews. Narrow down your Google search to mortgage brokers in your city or town and you’ll see a list of potential dealers. Choose one with high ratings and verify by contacting their past clients. A good tip is to start with three of the most reviewed agents and call them to ask important questions concerning home loans. After having a conversation with these middlemen, you will get a clear picture of their service. In case you leave a message and get no reply, pass the broker and move on to the next. A competitive mortgage negotiator is responsive and time-conscious. Time is everything when it comes to purchasing a home. Check out how much mortgage you can afford.

Mona M.

Mona Moore is an expert in homeowners insurance policy coverage, policy language, and helps first time home buyer's to determine the insurer's obligations.