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Mortgage Brokers Ottawa: Tips for First-Time Homebuyers

How Mortgage Brokers in Ottawa Make Securing a Mortgage Much Easier

Buying a first home is an exciting time in life, but it can also be stressful. A mortgage is usually the largest debt load Canadians take on in their lifetime. And while mortgages are usually considered good debt, it’s still intimidating, especially if it’s your first home. Thankfully, there are a few ways to reduce stress and make the mortgage search easier.

If you’re a first-time home buyer, then finding a dedicated mortgage broker can help with the house hunt and save you stress in the long run.

There are many benefits to working with mortgage brokers in Ottawa. Let’s take a closer look at what they do and how they work to help you:

Why Mortgage Brokers?

Mortgage brokers connect borrowers with lenders to find the best mortgages. The skills and experience of mortgage brokers help homebuyers navigate the mortgage process. These skills can pay off with savings from a lower mortgage interest rate.

When it comes to working with a mortgage broker, you have nothing to lose. Here are some of the many reasons why you should consider the help of mortgage brokers.

Their Services Are Free

That’s right—a mortgage broker won’t charge you for their time! The lenders they work with will pay them when you secure a mortgage. They help you find a mortgage you are happy with, give you professional advice, and do so in your best interest.

Flexible to Meet on Your Time

Mortgage brokers are freelance agents who are flexible when meeting clients. They aren’t restricted to banking hours. So, if you can only meet after work, then your mortgage broker will find a way to accommodate your schedule.

Excellent Negotiation Skills

Mortgage brokers work as the negotiator between you and the lenders. And they aren’t afraid to push for a lower rate. This skill comes in handy for home buyers who are afraid to be aggressive and negotiate a better deal.

Get Lower Interest Rates

Their negotiation skills pay off so you can get a lower mortgage rate. This lower rate could save you hundreds of dollars each month on your mortgage payments. That money can go towards other important savings and plans instead.

Find the Best Mortgage for Your Situation

Mortgage brokers take the time to get to know you and your financial situation. They will calculate what you’re approved for and what kind of mortgage makes sense for you. Your mortgage broker will go over the different types of mortgages. They will want to help you find the best mortgage so will develop a lasting relationship with them.

Relationship with Non-Traditional Lenders

Mortgage brokers work with various types of lenders. This allows more flexibility when it comes to finding and securing a mortgage. Mortgages from non-traditional lenders are possible for borrowers with poor credit. This helps borrowers build their credit and have a chance to enjoy home ownership.

May Even Cover Fees Out of Pocket

Your mortgage broker may have special programs where legal fees and appraisal fees can be reimbursed on closing. This is their way of showing that they are invested in your relationship. You will likely return to renew your mortgage if you are happy with your mortgage broker.

Key Questions to Ask Potential Brokers

Ask the following questions to ensure they are willing to help you understand what you’re signing up for.

What are the details of the application process?

To gain a thorough understanding of what to expect, make sure you find out the following details:

  • All the required documents and your deadlines for submitting them;
  • Cost and time frame to secure a mortgage rate;
  • Average time to closing;
  • Lender and third-party fees;
  • Loan product requirements—such as down payment, credit score, and debt-to-income ratio;
  • How you can track the application process/progress of your loan; and,
  • The professionals you’ll need to work with (real estate lawyers, realtors, home insurance brokers, movers, etc.)

What Will My Experience Working With You Be Like (the Mortgage Broker)?

A professional will make the daunting process easier for you. Find out:

  • How accessible and available they are, and if they’ll return your calls or e-mails on time;
  • If they are willing to contact you via your preferred methods—i.e. e-mail, phone, and online chat;
  • If they provide clear answers to your questions. As in, they are straightforward and don’t leave you guessing;
  • If they are the only broker you will be dealing with. Or, if they have an assistant or a partner who may also contact you; and,
  • How many years of experience they have.

What are my options if I have bad credit?

For first-time home buyers with bad credit, securing a mortgage isn’t 100% impossible. Make sure you are upfront with your mortgage broker so they know what they’re dealing with right away. This will make the application process go smoother. And you can avoid wasting time going to the lenders who have strict lending requirements. Instead, your mortgage broker will tailor your mortgage application to suit your financial needs.

What are the best rates I can get?

Ask specific questions with reference to your financial situation. Explain your desired loan amount, mortgage terms, and down payment, and ask what the best rates are for you. I.e. “What rate can I get with a good credit score and a 20% down payment for a $200,000 home?”

You can even be more specific about the length of mortgage you want and whether you want fixed or variable rates. With this information, a mortgage broker will compare rates from various lenders. Then, they will show you the best rates and help you decide on the right one for you.

When choosing mortgage brokers in Ottawa, look for those who offer competitive rates. They should also provide professional service and support throughout the process.

A good mortgage broker will help you understand each piece of the loan puzzle. They will give advice on credit scores and financial planning for your future. And they will help make first-time home buying less scary and more exciting like it should be.

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