When you think of financing options for real estate investors wanting to get the best mortgage deals, you might think of banks, credit unions, or even private lenders. YAWN! Been there, done that, got the t-shirt. Let’s move on to mortgage brokers.
Think of them as the cool guys riding the classic motorcycles, owning the brown leather jackets, wearing the crisp white shirts. You’ll want to be in their gang—trust me! Can I get an “Ayyyy”?!
Wondering why I’m hyping them up? Just picture your everyday life. Busy. Too much to do, not enough time to thank your local Starbucks (#penderreservebar) for keeping your office going.
Now add the fact that you’re trying to buy a house and get a mortgage sorted and approved.
Have you even bought or refinanced a house lately?! Mortgage brokers provide the value, get you the ideal rate, and understand your investing profile. Sounds awesome, doesn’t it?
Now, let’s find out why real estate investors love mortgage brokers:
Mortgage brokers can negotiate—well!
If you’re thinking of sticking with a bank or credit union—listen up! They're locked into specific rates, and they’re not sorry to say they won’t lower them for you. Brutal. However, mortgage brokers aren’t tied down. They’ve got LEVERAGE. Leverage through analyzing market trends. They use the rising and falling rates in negotiations to close deals. Tell them your goals, and they’ll try their damned hardest to achieve them for you.
They have dreamy networks
If you’ve been on a buying journey, then you’ll know that the mortgage market can be large, complex, and full of options. It can be hard to find a lender who’ll bend for you. If you’ve got a mortgage broker, you have someone to represent you in that tricky market! They’ve got professional relationships and know who will treat you right and give you the best rates that you wouldn’t get alone. If they can save you money, they will!
They create time, not waste it
Finding the right lender can be like looking for a specific fish in an ocean. A mortgage broker shrinks that ocean to a pond. They pre-vet lenders, which means you only have to think about the ones worth your time, leaving plenty of time to get brunch. They get how valuable your time is and even give you a helping hand with admin and paperwork, too. Cheers to that!
They avoid ticking time bombs
If you approach a lender directly, they most likely do a hard credit check on you. Not to rain on your parade or anything, but too many hard checks over a prolonged period could negatively impact your credit score. A mortgage broker pulls your credit score once, and presents it multiple times to keep the watchdogs from sniffing around. If your credit rating isn’t great anyway, not to worry, mortgage brokers can bring the sunshine and find you lenders with unique capabilities or contract rules that will work with your “high-risk” status.
Mortgage brokers are experienced problem solvers
Mortgage brokers are excellent problem solvers. They’re adaptable. Rates can be different if you buy undeveloped land, a property you'll demolish, or an existing property you won’t live in; mortgage brokers can swing things in your favour. They’ll talk the good talk with lenders, help them believe in your plans, and get you the rate you’re wanting. They’ll also review your contracts for everything that could occur in your situation and find you special financing options. Just remember, if it’s new to you, your mortgage broker probably has experience in it. It is their job, after all.
Your mortgage broker can also help you navigate the less desirable parts of the real estate landscape, like shady sellers, existing tenants who may be a problem, and deals too good to be true.
You can have iron-clad partnerships
Mortgage brokers have the freedom to move around and the power to get things done. This is favourable when you compare them to a mortgage broker tied to a bank, with that bank's policies and timelines. Investors like you need iron-clad relationships, and mortgage brokers can build them. When you’ve got a successful partnership, in true Step Brothers style, you just became best friends. You have someone to go back to with future investments too, saving you a whole lot of time. They’ll know your real estate plans, expectations, and definitions of wealth—eliminating the groundwork.
They're connected with all the right people
The average mortgage broker has a large and diverse network for you to utilize. Think of all the other services and professionals you’ll need to help build your empire. General contractors, real estate lawyers, interior designers, electricians, even cleaning services. We all like to go with people who have an element of trust behind them. Mortgage brokers can give you those trusted connections.
Time to pause and gather your thoughts!
Just take a moment to think of all the awesome things you’ve learned about mortgage brokers. We’re blowing the other players out of the water! Whatever specialized plan you’re looking for, there’ll be a mortgage broker out there who understands your niche and financing goals. More than that, they’ll have the experience, network, and negotiating skills to get you the rate you’re looking for, and from a top-tier lender too.
From first-time home buyers to seasoned professionals working with a mortgage broker that specializes in real investing means they know how to get complex deals funded.
If you’ve found yourself with an ah-ha moment reading this post, we think it’d be a shame not to share it with anyone you know stuck in the lender trenches. We’d also love to know your mortgage-based stories, whether you had an excellent experience with a broker or had a less-than-exceptional experience with a bank or credit union. What advice do you have for those who’re just starting out?
