Benefits of engaging a mortgage broker while buying your home are that you save yourself the hustle of having to look for the best rates in the market. Besides they also negotiate your premiums for you
Similarly, if you are working with a reputable mortgage broker, then you might get the best mortgage rates in the market that suit your financial status and location.
You are wondering why home buyers do not frequently seek the services of a mortgage broker. Let us swiftly get to four reasons why home buyers don’t engage brokers.
Four reasons why I will not engage a mortgage broker
1. They Push the 5-Year Fixed Rate
The first disadvantage of engaging a broker is that you do not get to choose the rates of paying for the mortgage yourself. For instance, the mortgage broker will negotiate on your behalf and convince you to pay the five years fixed rate for the purchase of your home. The price is not pleasant to many home buyers because you will eventually pay more money for your mortgage. In addition to the fact that the house seller and you’re the mortgage broker will get a high commission in return to the five years fixed interest rate deal.
2. Good liaison with My Bank
I have a lot of confidence in my bank even though I converted my account to a less costly one that will not charge me a lot of banking fees. But this does not mean that I cannot consult and negotiate for my mortgage considering that I have never purchased a house before
With my current experience with mortgage financing, making suitable choices for home buying is no longer a problem. Moreover, I am currently paying for my third home, and my mortgage rates are more flexible in addition to the fact that I have received numerous bonuses as a result of staying with one mortgage financier. It is also worth noting that my mortgage interest rates have been the best in the market. They have never escalated beyond 0.10%.
3. Bad Reputation
My initial experience with mortgage brokerage was not beneficial since most mortgage brokers do not give you factual information. For example, they offer eye-catching details on the rates of mortgaging purporting that their prices are cheaper compared to the banks. It is also wise to note that the mortgage rates from brokers usually are not the best deal in the home buying market. Sometimes they may trap you to buying a home with them by claiming they have lowered their mortgage rates.
The main reason why a mortgage broker will give you incorrect information in the first place is to enable them to get quick large amounts of money to lavish their lifestyles. Secondly, they also intend to get massive commissions from the sale of homes using mortgage brokerage. Similarly to mutual fund sales, a mortgage broker is paid a lot of commission for selling a home to you that is the reason why they will trick you into locked interest rates.
4. Do It Yourself
Buying your home with a professional mortgage broker Vancouver is no longer a cumbersome task thanks to the availability of online services. Save your self the hustle of engaging mortgage brokers by Clicking on Rate Supermarket to get all the current information and rates on mortgaging.
Secondly, consider narrowing down to the vendors you prefer and ask them to contact you.
Using mortgage brokerage services to purchase your home is not a bad idea. However, it is wise for you to put your needs for flexible financing before engaging a mortgage broker.
Having factual information on current mortgage rates is beneficial to all folks intending to buy a home to validate with the information your mortgage broker is offering.
Ensure you undertake your research and appreciate all the related mortgage fees, terms, and conditions that your mortgage broker is negotiating on your behalf.