Brokers? Are they really needed?
Well before we talk about that, let’s dive into some history
Did you know that mortgage brokering dates back all the way to 1893 when a firm named Sonnenblick-Goldman was founded in the United States. As you could probably guess, the purpose of the firm was to manage and arrange debt financing for real estate projects which were difficult to finance. It was around this time that several people were denied loans by the banks.
At the time, so many people were desperate for loans, and with banks having strict guidelines on who would get accepted, certain professionals of the real estate industry took it upon themselves to create a system which could unite wealthy people with loan seekers.
Now, mortgage brokerages are a very common practice, so common in fact that you likely know a family or friend who works as a mortgage broker or within a brokerage firm.
Did you also know that banks used to not be involved in the mortgage market for residential real estate? Only insurance companies were allowed to until the Bank Act was passed in 1954.
As you can see, brokerages have not always looked the way they do today, but they have been here and they have only grown in popularity because of how essential and vital they have become. Not everyone uses a mortgage broker, but many people do. According to a recent study, 40% of home buyers use a mortgage broker to help in securing their new home. This number shows that a substantial amount of people have put trust in mortgage brokers to help them on their homeowner journey.
Now what does this journey really entail?
It can be hard to ask for help in anything, but in decisions as life changing as these it can be even more daunting to devise how and who to ask for help. Mortgage Brokers are here to help you with more than just the ins and outs, terminologies and jargon used in house hunting, but also give you strategies, help you understand your needs and create a responsible budget.
It is a mortgage broker’s job to always stay ahead of the game and know all of the products available to a wide variety of clients.
- Are professionals who maintain a high level of professionalism and keep up with all of the offerings and developments within the industry.
- Always have an established place of business (sometimes within the digital world), and have chosen this as their career because they are committed to the industry and the needs of their clients.
- Have a wide array of products from which to choose. These could be mortgage banks, private sources, independent lenders, etc, and a lender will deal with a broker only after a thorough selection process checking references, interviewing and obtaining a copy of their broker license
But what is the biggest thing you should look for in a Mortgage Broker?
Trust. Trust is essentially and it is important to have a good interpersonal rapport with the broker you choose. Without trust, credibility and relationship forming, the process will not only be longer but it also may not be very successful.
The problem is, finding a mortgage broker is not hard, but finding exceptional help that you can trust could be. For this reason, we offer free consultations for everyone. If you enter a consultation and realize we may not be the best fit, we totally understand, but our hope is that the consultation will help you realize that we are a team that you can not only trust, but also be assured we are getting you sound advice on top of the best rates at the best price.
Give us a call or email at any time. We look forward to being a part of your home ownership journey.