If you are considering, even months or years from now, purchasing real estate, then the first person you should be talking to is a mortgage broker. Simply put, mortgage brokers help you find the best rates on mortgage products available at all financial institutions.

What’s more, they have the knowledge required to present a proposal for financing to a lender (bank) in the best way possible to successfully obtain your mortgage and deal on your behalf with all potential lenders. Mortgage brokers represent you and not the lender and they come at a price tag that even surprised us: Free, in most cases! Mortgage brokers basically are paid their commission from the institution you end up using as your lender.

When you begin the process of searching for property it is essential to know what you can afford. However, just because you have been approved for a specific amount does not mean you need to take that full amount. Be sure that the mortgage amount and the monthly payments  fit into your long term financial plan.

Here are a few Smart Cookie tips:

Referrals:

Having a referral from a friend, acquaintance or family member is great when trying to find a mortgage broker. Buying a property doesn’t always happen overnight, so you could be in this relationship for some time and it’s best to find a good fit.

Commissions:

Ask your mortgage broker on what basis they make their recommendations. Mortgage brokers are paid commissions to sell loans, so make sure you ask plenty of questions about the commissions they are paid.

Research:

Do your own research via the Internet and phone. Ask what deals mortgage brokers have to offer and if there are any conditions attached. Remember, this home loan is likely to be part of your life for years to come so don’t be afraid to ask tough questions.

Stick With Your Gut:

Make sure you feel confident about the person who is organizing your mortgage. Go with your gut on this one — if something doesn’t feel right, chances are it isn’t.

E-mail questions or comments at smartcookies@metronews.ca.

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