As a professional mortgage broker with ReferralMortgages.com in Ottawa, I get to work with clients and help them find financing that works best for their financial position. When working with people who are new to the concept of using mortgage brokers, I’m often asked questions that make me realize that many people are misinformed about what we do and how much help we can provide during the process of securing a mortgage. The following are some of the most common concerns raised during talks with potential clients and the answers to go with them.

Aren’t mortgage brokers only for people with bad credit?

Since we have access to more than 30 lenders with varying product offerings, we can certainly help with bad credit mortgages in many cases, but our services are for anyone seeking mortgage financing. If you have excellent credit and work with us, we can help you secure great rates and terms; often better than you can do on your own working with big banks.

I’ve heard that it’s not safe to work with a broker, especially if they go out of business?

Your actual mortgage will be issued by the lender, not by your mortgage broker so even if the unthinkable happens and your broker went out of business, your financing would remain unharmed. The best way to understand this part is to think of us as your professional assistants in the process of securing financing for your home. We do your credit application, shop around for the best rates and terms for your financial position, help you meet all the documentation requirements and even help you with your Realtor and lawyer. When it’s time, we secure the approval with your chosen financial institution and they complete the financial portion of the transaction.

My friends told me I’d pay a huge premium to work with a mortgage broker!

Absolutely, unequivocally untrue. Mortgage brokers like me are paid by the lenders, just like the person sitting behind the desk at your bank. The difference is, we don’t play favourites because we’re paid the same no matter which lender you choose to hold your mortgage. With bank personnel, they are paid only if they can sway you to choose one of their products, which is in the best interest of their financial institution. Working with a mortgage broker is completely free of charges for you and you get to work with a professional who is working with your best interests in mind.

Applying with over 30 lenders will destroy my credit!

While it’s true that your credit takes a hit when too many inquiries are made, that does not happen when you work with a ReferralMortgages.com broker. If you were to shop four different banks, that would require four different applications and four requests for your credit report. When you work with us, we only need one credit application and we don’t necessarily have to pull a credit report until we are ready to secure the financing. That means your credit isn’t negatively affected even if we were to approach every lender in our large portfolio!

I hope I’ve been able to help you with the myths surrounding mortgage brokers so you can benefit from our services. When you’re ready to secure a mortgage for your Ottawa home, contact us and let us show you just how helpful we can be!

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