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Monday, August 8, 2011

Picking a good Mortgage Broker


I recently read an article written by a realtor in Orlando, Florida complaining about mortgage brokers not doing their job correctly. He suggested that you contact lots of mortgage brokers and then pick one.
This could cause a big problem. I don’t advise clients on real estate or law because I leave it up to the professionals who work in that field. In this case, the advice this realtor is giving could result in a ding to the client’s credit score which might prevent him or her from buying the property they really want.
Every time you contact a bank or a mortgage broker, they will obtain a credit report to determine what sort of rate you qualify for . Too many inquiries will lower your credit score and can result in you being denied financing.
The author further says that you should pick a local lender as the financing could be delayed if the lender is too far away. How far away is too far away? I don’t know, but I would suggest that if time is short you pick a lender who is fast. Some lenders in Calgary take a long time while other lenders in Toronto are quick. My suggestion is to leave it up to the mortgage broker.
Finally, I would like to add my suggestions as a mortgage broker. If you are looking for a mortgage broker check out their online presence. Do they seem knowledgeable? Do they write articles or just long winded advertisements. ? In Canada, one way to tell if someone has been in the business for more than 2 years is to see if they have their Accredited Mortgage Professional designation , the AMP.
This tells you that the broker is experienced and takes regular continuing education. In addition, they have taken an ethics course and have swore to put your interests first. (Keep this in mind if you are thinking about going to a bank to get a mortgage. Who do they work for? You or the bank? )
You can find a reputable mortgage broker by going to your provincial mortgage association, in Alberta this is AMBA , or the national mortgage broker’s association which is CAAMP for find a broker in your area. Remember that brokers are licensed for their province only. If you are buying a property out of province ensure that they are licensed for that province as well.

Using a mortgage broker is easy , they do the leg work for you and find you the best rates and terms for your particular situation. Mortgage brokers help take the stress out of one of life’s most important events, the buying of a home.
David Cooke is a senior mortgage consultant with Mortgage Alliance in Calgary , Alberta. If you require further information you can contact David Cooke at his website or on Facebook
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