If you are planning to get a good mortgage loan, don’t just settle for the first mortgage broker Kelowna BC company which someone recommends to you. Frequently, we hear about fraudulent mortgage companies duping borrowers for a large sum of money. In order to avoid this, it is advisable that you shop around for a mortgage lender who will understand your requirement and cater to it. Understand which kind of loan you want to avail: one with an adjustable interest rate, or a fixed one. Adjustable rates have a tendency to rise after 3, 5, or 7 years. This means that your monthly payment will also increase with a rise in the interest. Fixed rate loans for a longer duration have higher rates as compared to those for shorter ones. If you haven’t planned for this, it will become a burden for you. Hence, you have to be absolutely make sure that you have entrusted your money in the right mortgage lender. Conducting a cost comparison and negotiating the rates with lenders can help you to get a better price. Here are a few more tips that will help you choose the best lender or broker.
You must first identify your mortgage requirements and list them out. After a basic market research, call the representatives of the shortlisted mortgage broker Kelowna BC offices for an interview. Ask them all the queries you have about the interest rates, APR, closing costs, monthly payment, etc. Observe their answers and how they convince you that their loan is the best suitable option for you. Do not get overly impressed by the persuasive marketing and advertising of these companies. Many lenders are only interested in selling the loan to you, and will make tall promises and claims. So, select a mortgage lending company that knows how to walk its talk. It is best to ask them all the details regarding the loan in writing or on email.
It is not necessary that you have to avail a mortgage loan from private companies. You can utilize government loans or other loans at lower rates of interest for buying a house. Apart from these, banks also offer mortgage loans; hence, you should check them out. If you are member of a credit union, you will be able to get a loan at affordable interest rates. Hence, explore all the options before zeroing in on a lender.
While a mortgage broker does not offer a loan himself, he will help you out by finding the best suitable loan option for you. He will act as an mediator between the mortgage lender and you, and will help you complete all the formalities. Remember that an unethical mortgage broker Kelowna BC can mislead you into availing a loan that may be too expensive for you or with the wrong company. Hence, check out the BBB website to know what kind of complaints have been filed by people against him. Visit the National Association of Mortgage Brokers (NAMB) and find a genuine broker who has the organization’s ‘Lending Integrity Seal of Approval.’
Recommendations Of Loan Broker Or Agent
It is always better to ask your family, friends, and colleagues who have availed a mortgage loan recently for a lender recommendation. You will instantly get a few trusted names through this method. You can then carry further compatibility and credibility research before zeroing in on one. You can also consult your local banks to get a few good names. Asking your financial adviser and reputable estate agent will also help you get a few trusted mortgage lenders. Don’t just blindly follow what others tell you, and promptly ask ‘why’ they think the lender will be suitable for them.
There are several players in the mortgage market. Some of them are well-established, bigger companies and banks, while there are others who are small players. Both large and small companies come with their own share of pros and cons. Large companies may offer you better facilities like online transactions, automatic mortgage deduction payment reminders, etc. Most importantly, they will be well-managed and will have credibility. Also, the chances of any kind of frauds are minimized. Small players, on the other hand, offer prompt customer service, immediate redressal of doubts, and better interest rates. However, trusting a little-known company can turn out to be a wrong decision in the long run.
Comparing Interest Rates
One of the easiest ways to understand which mortgage lender will prove beneficial for you is to make a table listing out all the interest rates and carry out a comparison. It is important that you also add columns giving details of lender fees, loan points, taxes, and insurance cost. This will give you a fair idea about loan from which lender will be cost-effective. Remember that low interest rates are not the only parameter to decide which person is the best. You must also check if there are going to be any kind of hidden charges or expenses that will increase the loan’s cost for you.
Throughout your loan-acquiring process and even after it, you will require assistance right from the application stage to the repayment one for solving any queries related to it. However, your loan officer will be a busy man or woman and will ask you to dial the lender’s customer service for any kind of doubts. Check the lender’s website if he has received any customer service awards. Remember that your relations with the lender will extend over a period of years, so you must find a company that offers prompt, accurate, quick, helpful, and knowledgeable customer service.