Mortgage Brokers, Banks, Etc...

[FlamesAddiction]

Hey,

I have a few questions regarding mortgages.

When I called CIBC (my bank for most of my life), they told me on the phone to basically multiply my household income by 4 and subtract any debts to come up with an approximate number for what we could get for financing. I wanted to book an appointment to actually get the approval in writing, but they said it wasn't necessary and that I should just make any offers with a "pending financing" statement. When I called real estate agents to start booking showings, they did not really like that idea.

One in particular was trying to push me on a mortgage broker that she "knows". I have to admit, and I mean this with all due respect to the realtors on here who are so kind with all the free advice, but I do not feel comfortable with sales people and get turned off fast if I feel pressured or out of my league.... I already felt like she was trying to hustle me on another matter.

So being totally dumb, can someone tell me if a mortgage broker really is a better option and what type of additional fees (or savings) I might expect by using one. Also, would anyone recommend a credit union over a bank if it was an option?

[fundmark19]

Originally Posted by FlamesAddiction

Hey,

I have a few questions regarding mortgages.

When I called CIBC (my bank for most of my life), they told me on the phone to basically multiply my household income by 4 and subtract any debts to come up with an approximate number for what we could get for financing. I wanted to book an appointment to actually get the approval in writing, but they said it wasn't necessary and that I should just make any offers with a "pending financing" statement. When I called real estate agents to start booking showings, they did not really like that idea.

One in particular was trying to push me on a mortgage broker that she "knows". I have to admit, and I mean this with all due respect to the realtors on here who are so kind with all the free advice, but I do not feel comfortable with sales people and get turned off fast if I feel pressured or out of my league....

So being totally dumb, can someone tell me if a mortgage broker really is a better option and what type of additional fees (or savings) I might expect by using one. Also, would anyone recommend a credit union over a bank if it was an option?

Mortgage brokers can offer you the best rates and shop across all different lenders where as banks can only offer you their own rates. Also mortgage specialists (the mobile ones who work for banks) can even offer you better rates than what your actual banker can give you. Credit Union or Bank doesn`t really matter just make sure you get a product that you are comfortable with (pre payment and options like that). If you are really uncomfortable still with mortgage brokers get a quote from one and then take it to your banker that you are comfortable with and see if they will match it

[Travis Munroe]

Originally Posted by FlamesAddiction

Hey,

I have a few questions regarding mortgages.

When I called CIBC (my bank for most of my life), they told me on the phone to basically multiply my household income by 4 and subtract any debts to come up with an approximate number for what we could get for financing. I wanted to book an appointment to actually get the approval in writing, but they said it wasn't necessary and that I should just make any offers with a "pending financing" statement. When I called real estate agents to start booking showings, they did not really like that idea.

One in particular was trying to push me on a mortgage broker that she "knows". I have to admit, and I mean this with all due respect to the realtors on here who are so kind with all the free advice, but I do not feel comfortable with sales people and get turned off fast if I feel pressured or out of my league.... I already felt like she was trying to hustle me on another matter.

So being totally dumb, can someone tell me if a mortgage broker really is a better option and what type of additional fees (or savings) I might expect by using one. Also, would anyone recommend a credit union over a bank if it was an option?

There are a few threads in this section on this topic.
Chances are you will get the best rate with a broker however the best rate is not always the best option for you. Realtors prefer when you work with their brokers as it helps speed up the process. My clients get faster service going through my mortgage broker as that broker wants to keep both the client and I happy for future business.
The nice/helpful realtor on this site didnt hear from you all jokes aside, my advice which I am sure others can confirm is to find someone you feel comfortable working with. It could be a lengthy process.... If I wasnt in the business but knew what I know as a buyer, the first thing I would look for is honesty. Not every place will be what you want however some realtors may complement every single property. If the realtor knows what you want then they will be the first to point out the negatives of any property.

[Deegee]

Originally Posted by FlamesAddiction

Also, would anyone recommend a credit union over a bank if it was an option?

Depends on the Credit Union.

We have a lot more control over our adjudication process and our decision making is done locally so have some flexibility some banks might not have to think outside the box since we do actual underwriting and don't just have an auto decision program.

For a typically employee it might not seem like a big deal when qualified on a typical GDS/TDS scenario, but I know it was a big deal to one of our members when we utilized some excess cash (without him drawing it out as income) in his business accounts to save him 16K in CMHC fees.

[TSXCman]

Bumping this thread, as I am looking for a recommended mortgage broker. Realtor 1, would you mind PMing yours?

I have been searching/shopping for 1-2 bedroom places near mission/cliff bungalow. I think its time I figure out what I can borrow.

[Mortgage Made Easy]

Originally Posted by FlamesAddiction

Hey,

I have a few questions regarding mortgages.

When I called CIBC (my bank for most of my life), they told me on the phone to basically multiply my household income by 4 and subtract any debts to come up with an approximate number for what we could get for financing. I wanted to book an appointment to actually get the approval in writing, but they said it wasn't necessary and that I should just make any offers with a "pending financing" statement. When I called real estate agents to start booking showings, they did not really like that idea.

One in particular was trying to push me on a mortgage broker that she "knows". I have to admit, and I mean this with all due respect to the realtors on here who are so kind with all the free advice, but I do not feel comfortable with sales people and get turned off fast if I feel pressured or out of my league.... I already felt like she was trying to hustle me on another matter.

So being totally dumb, can someone tell me if a mortgage broker really is a better option and what type of additional fees (or savings) I might expect by using one. Also, would anyone recommend a credit union over a bank if it was an option?

Originally Posted by TSXCman

Bumping this thread, as I am looking for a recommended mortgage broker. Realtor 1, would you mind PMing yours?

I have been searching/shopping for 1-2 bedroom places near mission/cliff bungalow. I think its time I figure out what I can borrow.

Hi FlamesAddiction, TSXCman -



We are new to the forum, so this may be coming a little late to help! But just in case you are still shopping, I thought I would leave a note..


The advise your bank gave you to start house hunting and NOT getting pre-qualified is not a great idea as this can lead to disappointment and potentially waste everyones time (you, Realtor, sellers, etc).


Getting pre-qualified or pre-approved is fairly easy to do and in many cases, can take about 20-30 mins (or less).


To answer your other question about whether a Mortgage Broker is better option... ultimately it comes down to you being comfortable with the person you are dealing with. Obviously there is more to it than that but if you are not comfortable with them, the rest does not matter. Some factors about why a broker can be a better option is:


- Our services are free!
- We work for you not the bank/ lender.
- We have access to a number of lenders to provide you with a product that meets you and your families needs (today and in the future).
- We protect you from large penalties if LIFE happens.
- We have access to rates that typically are lower than banks and there is no need to negotiate as we are up front with rates and terms.
- We work with clients as a Mortgage Broker to begin with and then become an Account Manager to help you manage your mortgage, lender and your family goals (this could be paying off your mortgage, getting a rental property, vacation home, etc).
- There are many other reasons why a mortgage broker is a great option...


If you'd like some more info, please PM us or send an email!


Hope this helps.
~Colton