I love this video.
It’s fun and makes it easy to understand what I do – I’m your mortgage partner and I get paid by the bank. I think of it as an introduction for those who don’t know how mortgage brokers work and a refresher for those who haven’t had a mortgage discussion in a while.
Two concepts in the video deserve a bit more explanation.
1) What happens to your credit score when you shop multiple lenders?
Each inquiry made into your credit rating can lower your credit score by 10 to 20 points. It may sound small, but it can be a big deal if that reduction to your score is enough to push you from a traditional mortgage to a B lender.
Something as simple as a few inquiries could result in you paying thousands of dollars more in interest and fees. If those inquiries “ding” your credit score enough, you could also become uninsurable by the main mortgage insurance companies. Meaning, you may need a larger down payment or may have to pay more for your high ratio (lower down payment) mortgage than expected.
As your mortgage broker, I pull your credit score once. Just one ding. I use that same report to shop as many lenders as it takes to get you the best mortgage rate and terms.
2) Do I really shop 40+ lenders for your mortgage?
Not often, but I do have access to more than 50 lenders to ensure you get the deal that’s best for you.
I keep constant tabs on over 20 of them and for most mortgages I will review somewhere between five and 10 of them. Because I always check these lenders first, it often results in preferred rates and terms for you.
If you have a more challenging situation, that access to 40 plus lenders will get you the best possible options.
If you haven’t watched the video , take a minute (it’s only a minute and a quarter) and check it out. You’ll better understand what a mortgage broker does and when it comes to what is often the biggest financial decision of your life, a little more information is a good thing!