The most important thing that you need to do is to understand who a mortgage broker is, before you can start looking at anything else. A mortgage broker is a person who gathers all the necessary paperwork from a given borrower and then passes the paperwork that has been gathered to the mortgage lender. The mortgage lender is the one who is going to do the underwriting and also make an approval.
The mortgage funds are normally sent using the name of the mortgage lender. The mortgage broker is then going to collect an origination fee from the lender who is going to act as a kind of compensation for his or her services. It is however very important for you to understand that a mortgage banker who makes use of their funds to fund or close a mortgage is not the same as a mortgage broker.
A mortgage broker from Toronto is known to be a kind of intermediary who is working with a lender and a borrower while still been able to qualify the borrower for a mortgage plan. The broker is the one who is going to gather all the necessary information as an asset, income, a credit report, employment documentation and any other kind of information that may be needed when it comes to assessing whether or not a given borrower can secure financing.
Once this is done, the mortgage broker is then going to be able to determine which loan is the best for you as a borrower. The broker is also going to determine the best loan type for the borrower, the loan amount as well as the loan-to-value ratio of the borrower. Once this is done, he or she is then going to submit all the information to a lender for approval. The mortgage broker is going to be communicating with both the borrower and the lender during the entire process.
As mentioned earlier, the best mortgage rates Toronto is a person who works on behalf of a borrower so as to ensure that he or she can get the lowest mortgage rates and programs that are available in the market. The broker is going to save the borrower a lot of time and effort which is normally required during the entire application process.
It is, however, important for you to keep in mind that the number of lenders a given broker can access highly depends on the approval he or she has to work with each lender. What this means is that a given borrower may have access to lenders that a broker may not have.