Finding the right mortgage broker in Edmonton
31 December, 2018 / by Glenn Carter
A good mortgage broker in Edmonton should have your best interests in mind when you’re purchasing a home, renewing or refinancing your mortgage. Your broker get the mortgage financing that you need by focusing in on the mortgage options that are best suited to you.
A mortgage broker in Edmonton is a lot like a “middleman,” but they do a lot more than simply fulfil your order. Here are some of the vital functions that your broker may take care of:
- Reviewing your finances
- Recommending the mortgage products best suited for you
- Preparing your mortgage application, including lenders notes, that improve your chances of securing the mortgage financing that you need to close the deal
- Negotiating with lenders for the best terms and conditions
- Coordinating with your real estate agent and lawyer
Real estate deals oftentimes move at a high speed. A competent and veteran mortgage broker in Edmonton can make sure everything goes smoothly. They can make sure everything is doing efficiently and correctly, so you’re able to get the mortgage financing that you need.
Similar to Calgary, Edmonton has been hard hit by the decline in oil prices. The fires in Fort McMurray didn’t help either. Despite the challenges Canada’s northernmost big city has faced, Edmonton’s real estate market has by and large managed to weather the storm.
Total residential unit home sales are down 13.61 percent year-over-year in October 2018, according to the Realtors Association of Edmonton. At first glance, the numbers don’t look too great. However, in the same month the average price of a single family home was $425,864, a drop of only 1.30 per cent compared to October 2017.
In spite of this, the Edmonton real estate market still has some strong fundamentals, including an average household income of $105,795. It remains a good real estate investing opportunity if you plan to buy and hold for the long-term.
Role of a Edmonton mortgage broker
Your mortgage broker in Edmonton can assist you in managing your mortgage application by asking for documents required by the lender up front.
Once your broker submits your mortgage application to your lender, your mortgage is underwritten. The lender may come back with a request for “one more document.” Your broker should set realistic expectations and help everything move along smoothly.
If you have a decent beacon score, earn decent income and have a sizable down payment, you may have dozens of lending options available to you. You can choose from the big banks and credit unions or decide to go with monoline lenders that deal exclusively with mortgage brokers.
The mortgage industry has been in constant change over the last couple years. You’ll most likely want to work with a full-time broker who has his pulse on the industry and is able to find the best mortgage product for you.
Depending on how experienced you are, you may want a broker that explains everything to you in great detail. This especially comes in hand if you’re a first-time homebuyer. You probably need more handholding than an experienced real estate investor.
Brokers and second mortgages
Having a good understanding of second mortgages is useful when you need quick funds for an emergency, an investment, home renovation, a child’s tuition, or to pay off high-interest debt. Brokers will be able to help with this as they will have a rolodex of second mortgage providers, or even access to lending funds, that you can access to solve your financial challenges.
A mortgage broker will be able to explain to you how a second mortgage is subordinate to the first mortgage, and that the loan amount will depend on the equity built up in your home.
Brokers and home equity loans
Brokers can help you with a Home Equity Line of Credit (HELOC), where you can gain access to funds in your home. A HELOC has a unique advantage in that it can be used, repaid, and used again, while only paying interest on the portion of the funds that have been utilized.
A broker will tell you that a HELOC can be a solution for many financial needs, such as: launching or supporting your small business, investing, a rainy day fund, medical and health care expenses, and much more.
Brokers and private mortgages
In today’s environment of tight mortgage restrictions, some borrowers may have trouble obtaining financing from a traditional lender such as a bank. A broker can help you with access to a network of private lenders, who are simply an individual or company other than a bank or traditional finance provider.
Accessing a broker’s network of private lenders will show you that one of the biggest benefits of working with them is that they operate differently from traditional banks. This in turn provides you with more flexibility.
Interviewing a mortgage broker
Mortgages involve a lot of numbers and a high level of detail. You’ll most likely want a broker who is very detail oriented and good at calculating numbers. Your broker can do an assessment of your finances and help you come up with long-term mortgage plans.
If your goal is to be mortgage-free as soon as possible, then a good mortgage broker should choose mortgage products with features that allow you to do that.
For your initial meeting with your broker, you want to make sure you’re a good fit for each other. Here are some key questions to ask a potential broker.
- Can you provide me with some client references?
- How long does it typically take for a deal like mine to close?
- How long have you been working in the mortgage industry?
- How many millions in mortgages did you fund in the last couple years?
- Can you walk me through the mortgage funding process?
- Is there anything I should be aware of when working with this specific lender?
- How can I improve my chances of my mortgage application being approved in a timely fashion?
Working with an adaptable and flexible mortgage broker
Buying a home is a big financial transaction. As such, a mortgage broker in Edmonton that takes txhe time to educate you about the mortgage options at your disposal so you can make the best possible decision is ideal.
Your mortgage broker in Edmonton should walk you through the mortgage process, assisting you with choosing a mortgage that should be good for the years to come.
If your credit is blemished, your mortgage broker in Edmonton should give you the necessary steps to improve your credit so that you’re able to improve your chances of obtaining a decent mortgage rate.
Although a good mortgage broker in Edmonton should do most of the heavy lifting, it doesn’t hurt to do your own research. At least that way you’ll understand why your broker is asking for specific documents at certain times during the mortgage process.