Why Sourcing Your Own Mortgage Options Is A Bad Idea
With the dawn of the internet and widespread of information related to various professional services like interior decor, painting, bookkeeping, marketing, etc. DIY activities or do-it-yourselfers have grown quite popular over the years. Similarly, as they require little to no investment, people are attempting to DIY advanced services too, like mortgage application and acquisition.
However, when it comes to mortgages, it is essential to seek the services of a professional as the mortgage industry is complicated and riddled with terms and conditions that can make the application process challenging. Not to mention, the DIY approach, in this case, can affect your credit status and ultimately cost you dearly. To give you a clear idea of what exactly could go wrong, KP Mortgage hs explained why sourcing your own mortgage options is a bad idea.
1. Considering only a few factors
When applying for a mortgage, most clients only look at the rate. But, the rate of interest charged on a mortgage is only one aspect of this financial instrument. There are other terms and conditions that you need to consider, as well. For example, the minimum monthly installments, renewal terms, repayment terms, down payment requirements, etc.
2. Limited access
Going to one or two banks on your own does not give you the entire scope of the mortgage market. Banks usually promote their own mortgage products, which are limited. At the same time, most bank advisors do not give an adequate overview of penalties, or they only provide a basic understanding of a mortgage product. Also, there are tremendous opportunities that surround mortgages which are never adequately covered.
3. Financial implications
There are high chances of incurring significant penalties and missing out on financial opportunities, by not approaching a well-versed mortgage professional. Certified and experienced mortgage brokers understand the mortgage market and have connections with several lenders. This enables them to offer you a range of mortgage products and guide you to the perfect one for your needs.
Do things right - Hire a professional
As you can see, applying for a mortgage on your own comes with several challenges and missed opportunities. As a result, it’s crucial to work with a mortgage professional. Bank employees are not licensed in the mortgage profession. Only independent brokers carry a mortgage license, under the AMF. The Autorité des Marchés Financiers (AMF) is the organization responsible for financial regulations in the Canadian province of Québec. It regulates the province’s financial markets and assists consumers of financial products and services.
Licensed mortgage brokers have an in-depth knowledge of mortgage penalties and are aware of the options that can prevent triggering fines. When you approach them, they will ask you about your mid and longterm plans to know what type of product is right for you.
Another aspect you should consider before hiring a mortgage broker is their level of professionalism and personality. A caring and experienced professional will take the time to understand your situation, and explain what options are best for you.
They will also teach you about the basics of a mortgage, what the pros and cons are to maximize your chances of availing of different opportunities. There are some mortgage opportunities that you can take advantage of only once as a first-time homebuyer. After you apply for your first mortgage, you cannot go back. Also availing of products that are considered restricted or high penalty without knowing the terms, can cause great peril. Even penalties with standard banks are quite punitive, and most people do not know about this.
Fortunately, licensed mortgage brokers are aware of the finer details and working with them is absolutely free when you are shopping for a regular mortgage product. The broker is compensated directly by the lenders. There is no clipping or premium added to the client’s rate. But, when it comes to mortgage products from B lenders or lenders from the private space, you need to cover the fees of the broker.
If you’re looking for the best mortgage broker in Montreal, QC, reach out to KP Mortgage. Our goal is to identify the best mortgage options for your needs and support you throughout your mortgage journey. We understand that life is filled with uncertainties, and for this reason, we make sure your needs are understood, and sufficient precaution is taken to protect the integrity of your financial situation.
To learn more about KP Mortgage, please click here or get in touch with us to schedule a consultation by clicking here.