Finding a Mortgage Lender
When it comes time to shop for a mortgage lender it can seem daunting and stressful. However, there are multiple companies that are able to help you through the process and interest rates options. The whole process can sometimes feel really overwhelming and that’s why a mortgage lender or specialist can help you make the right decisions.
There are three different type of mortgage lenders in Canada. The first one is the “Lender A,” which are the traditional lenders, banks and credit unions. Typically this lender is for those who have good credit scores and a steady income.
Next is the “B Lender,” they’re able to offer a lower barrier for the borrower. The borrower may not have qualified through the bank or credit union. Finally there’s the “Private Lender,” which is for borrowers who have lower qualifications than the A and B lenders.
“While banks and other major financial institutions are considered to be A lenders, monoline lenders also fall under this category. Unlike banks who offer multiple services like credit cards, investments and bank accounts, monoline lenders specialize primarily in mortgage loans.”
It’s best to start by looking for a mortgage broker, as we mentioned above, they can offer you recommendations on what type of mortgage is right for you. You can then compare all the options and go with the one that suits your life and income situation. This is also possible to do online, you can compare interest rates and terms.
What to Ask Your Mortgage Broker & Lender
It’s important to understand the interest rates and terms with your lender. This way there aren’t any surprises. Some questions you should consider asking are about your payments, property taxes and mortgage options.
This is because each mortgage lender will have their own policies, your broker will be able help you understand their guidelines and terms. Then they’ll be able to help you determine which lender will suite your needs best.
It might also be helpful to ask your broker what lenders they think would be best for you. It’s also a good idea to ask your broker the difference between a bank and moonline lenders. This will help you figure out payment privileges, which is usually the biggest difference.
“Borrowers may also want to ask about extra payments on your mortgage and how many you’re entitled to per year, the mortgage renewal process, and if your lender allows property taxes to be collected with your mortgage.”
Another good question to ask would be about any penalties if you choose to pay out your mortgage early. This could impact the length of your mortgage term and the interest rate. Its important to know the interest rate penalties.
Choosing the Right Lender
There’s a lot involved when you’re choosing the right lender. It can be more than just about rates and terms. It’s important to make sure they have good customer service and can communicate well.
With any service or company, you want to make sure that you’re treated well and that issue, of there are any, are resolved. It’s “important for lenders to have a good online customer portal. This is where clients can make payments, gather mortgage statements, and get other detailed information.”
Contacting Lori VanDinther and Team
If you need advice about mortgage lenders or brokers, we can help. If you have any questions about the current real estate market my team and I are here to answer them for you.
We love connecting with our clients, our goal is to help you find the home of your dreams in Burlington, Ontario and surrounding areas. Please contact me either by email at firstname.lastname@example.org, or by phone at 905-632-2199.