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Here are 5 of the most common myths about Mortgage Brokers and why the myths are not true.
1. You need to pay a huge premium to work with a mortgage broker.

  • Untrue.  Mortgage brokers are usually paid by the mortgage lender, such as a bank, monoline lender or credit union.
  • Our focus is on finding the right mortgage for our clients, not based on how much we get paid.

2. You only need a mortgage broker if you have bad credit.

  • With access to over 35 lenders with a variety of lending options, in most cases we can help anyone seeking a mortgage.
  • Whether you have good or bad credit a mortgage broker will work with you to determine the best solution for your situation.
  • A mortgage broker can help guide their clients to fix bad credit.

3. Your bank will get you the best rate, so you don’t need a broker.

  • Unfortunately, even being a long time loyal customer the banks don’t always offer you their best rate.
  • A bank can only offer you their own mortgage products.
  • A mortgage broker can offer you a variety of mortgage products from a variety of lenders.  They will find you the best mortgage product for your situation, at the best rate available.

4. Applying to many lenders will destroy my credit.

  • While it is true that multiple credit inquiries in a short period of time can drop your credit score, that is not true when you work with a mortgage broker.
  • A mortgage broker can apply to multiple lenders with just one credit inquiry.
  • Shopping to 4 banks on your own would mean 4 applications and 4 credit inquiries.

5. It’s not safe to work with a broker, in case they go out of business.

  • Your actual mortgage will be issued by a lender, not the broker.
  • If the broker did go out of business, your mortgage would be unharmed.
  • But we aren’t going anywhere for a very long time!!

Please check out our previous blog “Why use a Mortgage Broker?” for more information on why your best choice for mortgages is a broker.  Then give us a call to discuss your next mortgage.