Mortgage brokers work with you to find a great deal on a mortgage. They can be invaluable in your search for a home loan. There are many, many great mortgage brokers in Canada. But in the sea of brokers, there are also some predators you need to watch out for.
Buying a home, whether it’s your first or fifth home, is always an exciting time. The last thing you need is to have a bad mortgage experience ruin such a special time in your life. At the same time, you absolutely don’t want to end up with a mortgage that isn’t right for you.
If you end up with a bad mortgage broker, you might not realize it until it’s too late. If you don’t have any friends or family members to turn to for a referral, make sure you watch for these three warning signs of a terrible broker.
1. The Offer Sounds Too Good to Be True
Nothing in life is free. And if a deal seems too good to be true, it probably is. Remember that when you’re shopping for a mortgage broker. If he’s telling you he can get you approved regardless of your debt or credit, be leery. If he’s telling you he has the lowest fees or he can get you interest rates that are two points lower than the other guys, be leery. He isn’t the answer to all your prayers. You’re going to be disappointed in the end.
Once you’ve starting working with a broker, it’s tougher to just up and leave. Predatory brokers know this. They’ll get you in the door with lies, then the truth will come out later on down the line. At this point, you might think you’re in too deep to leave. Maybe you’ve already paid for an appraisal. You might not want to start from scratch with a different lender.
Realize it’s never too late to leave. If you’ve been duped, get out while you still can.
2. No Answers and Constant Delays
Buying a home is a big deal. It’s stressful. When you’re going through the process of being approved for a mortgage, you’re going to be restless. Things need to move quickly so you can meet your closing deadlines.
You can’t deal with a mortgage broker who isn’t answering the phone or replying to your emails. You can’t handle a broker who ghosts you—disappears for a week or two at a time without a word. And you can’t deal with constant delays—you could end up losing your dream home.
If you’re having a tough time getting a hold of your broker at the beginning of the process, find someone more reliable to work with immediately. The communication problems and delays aren’t going to get any better later on.
3. Bad Reviews and No References
Hopefully, you did your research before choosing a mortgage broker. After all, this is likely the biggest purchase of your life. You want it to go just right. You don’t want to be duped, have to pay any additional costs, or lose your dream home due to technicalities.
If a mortgage broker you’re considering working with can’t offer you any references for happy previous clients, take this as a warning sign. If all you’re finding online are bad reviews and a bad reputation, stay away.
If you’ve already chosen your broker, the same research applies to the lender the broker is trying to convince you to go with. Do your research at every step of the process.
Make sure your mortgage experience is a positive one by working with a reputable broker who’s transparent, honest, and available to meet all of your needs. Don’t settle for anything less.