Updated: Jul 30, 2020
A Mortgage Broker is a matchmaker between a borrower and a lender. According to broker, Jennifer McLean with MortgagePal, they help clients find the perfect mortgage, credit management and financial planning.
While looking for a mortgage through your bank is an option, banking mortgage specialists are limited to offer only what’s available through that particular financial institution. A broker has access to many different lenders to help clients find the perfect mortgage to fit their needs. A broker will also stay with the client. McLean says a broker will be there after you’ve locked in your mortgage to help you at renewal time to ensure you get the best terms and move your mortgage, if it needs to be moved. McLean reiterated that a broker will be there to help their client until their mortgage is paid off.
A strong credit score will help you secure the mortgage you need. But how do you check your score and what are ways to keep it strong?
Keeping Your Credit Score Strong:
Soft credit checks can be done on your own and will not affect your credit score.
Hard credit checks are done by lenders or creditors and will mildly lower impact your credit score.
A credit bureau will look at how many credit facilities you use versus how much credit.
No credit is as bad as having too much credit (You want two years of credit history.).
Pay your bills on time.
If you do have credit card or loan debt, pay it down weekly, or as frequently as possible.
Make sure you’re not over utilizing your credit. Keep it under 30% of credit available.
Consolidate your debt if you have multiple different payments and all your money is going toward debt repayment. If you can consolidate into your mortgage, you will be paying less each month, so more money is available monthly.
Mortgage Brokers have been around for a long time. The industry has changed considerably in the last few decades and navigating your finances and qualifying for a mortgage has become more complicated. A broker will ensure smooth sailing.
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