Mortgage Broker or Real Estate Agent / Realtor First?
January 28, 2020 | Posted by: Ron Chan
Most first time homebuyers know that connecting to a mortgage broker and Realtor (or real estate agent) is a necessary place to begin the purchase process, but there is some confusion regarding the pecking order, so to speak. Should you initially contact a mortgage broker or Realtor/agent? The answer is simple enough - most people typically establish a relationship with a mortgage broker first. Here’s why.
3 Reasons Why First Time Home Buyers Connect to a Mortgage Broker Before a Realtor or Real Estate Agent
1. A Broker Helps You Establish Your Home Buying Budget
The first thing you need to figure out when buying a home is your budget. For this reason, connecting to a broker right away is your top priority. A Realtor/agent wants to know your budget, whereas a broker helps you determine it. They are not just there with mortgage calculators to reel in your expectations, they may instead help you find money for a downpayment that you may never have considered.
2. A Broker Connects You to Lenders and Preferred Mortgage Rates
You don’t want to waste a Realtor’s/agent’s time while you figure out your home buying capabilities. A broker helps you establish your budget (as per item #1 above) but then connects you to lenders. Better yet, when a broker has long standing relationships with banks and lenders (Royal Bank, CIBC, Scotia Bank, TD, BMO, and many more) they have access to unadvertised fixed and variable mortgage rates. In layman’s terms, they essentially get a bulk discount from lenders due to the fact that they (the broker) have been sending them business for years. By building your relationship with a broker early on, you will benefit from these preferred rates. This puts you in a more confident financial position to approach a Realtor/agent who will help you find your dream home.
3. A Broker Can Connect You to a Realtor and/or Agent Best Suited to Your Needs
Another great part about connecting to a broker first, is that you will also benefit from their ties to the real estate community. By default a broker has formed numerous relationships with Realtors and agents. A broker knowns them well, including everything from types of residential properties they handle to their unique personality quirks. This is all valuable intel that they (your broker) can apply to your distinctive home buying needs, and your own personality quirks for that matter. With a broker, you don’t have to find a Realtor or agent based on a bus stop ad, billboard, or Google search. Instead, your broker serves as the ultimate matchmaker.
Take the first big step to buying your first Winnipeg area home by contacting mortgage broker and specialist Ron Chan for a friendly conversation. Call Ron today at 204.290.9950.