When to Hire a Mortgage Broker (to buy a home)
Before we begin, we want to clarify that you actually don’t “hire” a mortgage broker in a traditional sense. Yes, we absolutely work for YOU, but you don’t pay a thing out of pocket. Instead, you secure the services (or partner with) a mortgage broker. With semantics out of the way, we can now get to your important question. Below is a succinct breakdown of questions to ask yourself before getting a home loan.
6 Questions to Ask Yourself When Determining Whether or Not to Work With a Mortgage Broker When Buying a Home
I. Are You a First Time Buyer?
There is no greater time to work with a mortgage broker than when it’s your first time buying a home. There are so many concerns and variables to consider, and you need peace of mind before making decisions about mortgage terms (fixed or variable rates, etc.). Please reference our guide to how mortgage brokers are critical for those buying their very first property.
II. Can You Afford to Buy a Home Right Now?
The statement “I can’t afford to buy a home right now” is a major misnomer. So many individuals, families, and households miss out on the dream of owing a home because they believe that they cannot afford to buy one. “Right now” quickly becomes tomorrow, then the next year, and the year after that, until they find themselves in a perpetual rental trap. Don’t let this happen to you. A mortgage broker has access to rates, terms, and buyer incentive programs that can significantly reduce downpayment requirements and monthly expenditure. What’s wild, is that all you have to do is have a friendly conversation to find the answer to this question. There is a disproportionately GREAT chance (especially at today’s rates) that can actually afford to buy a home, but only if you work with the right broker.
III. Do You Have Bad or Limited Credit?
This is another barrier to entry that a mortgage broker can break down. Full service mortgage brokers offer debt consolidation along with access to alternative lenders who unlike the big banks, don’t look only at your credit score.
IV. Are You Self Employed?
Self-employed persons and entrepreneurs have a lot of questions about buying a home, and more importantly, so do their prospective lenders. Are you a freelance contractor or small business owner? Then understanding what to declare as a part of your personal income is just the tip of the iceberg. Here is everything you need to know about the necessity of a mortgage broker for self-employed home buyers.
V. Looking for More Than a Place to Live?
Some buyers have grander plans for their home purchase. Are you looking for a quick flip opportunity, or want to invest in a second home or vacation property that can earn income on the rental market? A broker can assist with consulting services and a variety of financing options, leveraging existing equity and more.
VI. Are You Worried About How Banks Will Look at You?
This ties into item #2 above. Some individuals and households put off approaching big banks for a home loan, afraid that they will be denied if not laughed out of the building. This unfounded fear is often rooted in insecurity about one’s station in life. It exists in the hearts and minds of those within certain professions where income is disproportionate to value (i.e. teachers and nurses, etc.) and for caretakers and single parents. Heck, we’ve consulted with young couples who were afraid to approach lenders, even though they are the up and comers of society. Forget the stuffed suits who sit on their proverbial thrones behind the oak desks of big banks. Mortgage brokers have their number (literally and figuratively) and will ensure that you are afforded the respect you deserve, to the point that they (or alternative lenders) will be begging for your business.
Have you answered in the affirmative to any of the items above? Then hiring a mortgage broker will be the best decision you can make. If located in the BC Southern Interior, contact Carloni Mortgage Brokers to begin the home-buying process with a friendly conversation.