In this lesson we will explain more about the mortgage pre-approval process and what to look for when choosing a lender. Examine banks versus mortgage broker and provide more tips
Mortgage Brokers: Most mortgage brokers are licensed by the government and have access to multiple lenders who compete for your business much the same as your independant insurance broker. In most cases there is no cost to you and the broker gets a fee from the lender on closing.In many cases the broker can beat the bank's interest rate and get someone approved that the bank can't.
I would suggest interviewing a number of bankers and brokers mainly to see who you feel comfortable dealing with. See what they have to offer re: Interest rates,term,ammortization,pre-payment privilages.
Quick tip: The banks are absolutely ruthless on payout penalties and if you get behind in your payments. All their mortgages call for 3 months interest or an interest differential which ever is the most if paid off before the mortgage matures or renews. Some of the credit unions are much more flexible so if early payout might be a possibility or if you want a lender who may have some compassion if trouble strikes make sure you talk to your credit union.