This ONE mistake can cost you THOUSANDS! | Surrey REALTOR explains the importance of second opinions

It's time to buy a house. And you are so excited because not only do you get to find a new place to live and have a ton of fun doing it, you also get to start paying a mortgage. Paying a mortgage. Okay, so paying a mortgage is not as fun as it sounds. And really, there's nothing fun about it whatsoever. But today's video is all about working with a mortgage broker over the banks and what you need to be cognizant of. If you're ready to take this ride, let's get on it. What's good, everybody? I'm Darin Germyn with the Germyn Group where we know that you've only got one chance to either buy or sell your next home. So we're here to help you get it right.

All right, so before we begin and get into what you need to know about working with a mortgage broker, let me caveat this by saying a few things about mortgage brokers, because I've worked with many of them over the years. Mortgage brokers are highly trained, highly specialized individuals that are typically incredible at what they do.

They help people find great products for their mortgages and help them get into the homes of their dreams just like Realtors. Mortgage brokers in British Columbia offer so much value to would be home buyers. And at the Germyn Group, we actually tend to prefer mortgage brokers over going into the bank. That's another topic. Mortgage brokers are Proactive in helping you find the best rate. Mortgage brokers help provide you with options on what rates and what products might be better for you, depending on your plans. They also have a fiduciary duty to you as a home buyer or a mortgage buyer, and they can also typically offer you elevated levels of service, far beyond what you might get going in directly to a bank.

So to all my mortgage broker friends that are watching this, we love you and you do a great job. Yet today's video is maybe for some that may be in the industry that aren't doing quite as good of a job as the people that we tend to work with. I'm not here to suggest that they're doing something wrong, but I'm just here to suggest that you, as a home buyer and someone who may be getting into a mortgage, knows exactly what to watch out for when you're doing that. Just like in the real estate industry, mortgage brokers get offered a Commission and different banks or different people that lend money to would be homebuyers that mortgage brokers ultimately help source out for you as the home buyer actually offer different amounts to those mortgage brokers. You may or may not have known this, but what that tends to create is a little bit of a different incentive for a mortgage broker to suggest a particular lender for you over a different lender who might have a better product or a better mortgage.

One of the biggest values of working with a mortgage broker is to get options. And I'm a big believer that if that mortgage broker that you've decided to work with is not providing you with options, they're really not doing their job and not giving you the full extent of what they can offer. It is not my job as a Realtor to tell you what house to buy, nor is it the job of a mortgage broker to tell you what mortgage you should get. My job is to give you options with homes, and their job is to give you options with what mortgage products might be best for you. So don't settle for just one option.

Make sure they give you a few and tell you what their suggestions are and why particular ones might be better than others for what you've got going on. The other thing that you may not be aware of is different lenders also offer mortgage brokers bonuses. That means they get paid more money, again based on the volume that they send to a particular bank, based on how many transactions they actually send out. Now, while all of this isn't necessarily problematic at the time when you typically as a consumer get this disclosure about how much the mortgage broker is getting compensated from the bank, as well as whether there is any bonus is usually too late, meaning you're about to complete on your deal, close on your deal, and you're probably sitting at the lawyer's office or very close to going to see the lawyer to actually go sign the final paperwork to purchase the home. This may obviously raise a few suspicions for you as a home buyer again on whether you got provided with the best product or the best options that might be out there.

When I bought my home that I'm in right now, back in 2020, my mortgage broker was incredible. Yet I learned when I went to go sign the mortgage papers that there was quite a significant bonus attached to the mortgage that I decided on. I had a little bit of an interesting case because I'm self-employed and I'm a Realtor, yet you can see that there is a finder's fee of $5,300 attached to this mortgage, as well as a volume bonus adding an additional $2,500. Because of going to this particular lender, that volume bonus is an extra 1/3 of the total fee for compensation for that mortgage broker. Had I have chosen to go to a different lender, that volume bonus likely would not be applicable nor provided to the mortgage broker.

So there obviously is disclosure made about the fees that are paid, but again, they're done way too late on a document called a Form 10. It'd certainly be nice to have that changed. But in my industry, in real estate, which is heavily regulated, as you may or may not know, we have an obligation to disclose to you what our fees are when you make an offer on a home to purchase. We need to let you know how we're being compensated. If there is any volume bonus or any other bonuses that might be included.

And we have to make sure you're very aware that you're getting into something and we are being compensated by a third party, that's pretty important. I guess the last thing that I'll leave you with is lenders like to tell you that they can work with everybody out there. Which is true, but not completely true. There are some major, major players out there that don't work with mortgage brokers at all because they want to keep their products and their mortgages in house and not pay commissions to these mortgage brokers. Examples of these lenders that are out there might be like CIBC or RBC, where you need to work directly with a representative from those respective branches if you want to get a mortgage through them.

So are you shopping the entire market when you go to a mortgage broker? Not necessarily. However, you're getting a pretty good chunk of the market, to be fair to them. So that's pretty much it everybody. Those are some things that you need to know when engaging a mortgage professional. And of course, if you want to chat about my perspective on mortgage brokers or anything to do with buying or selling a home, down below in the description, you can book a time directly with me to chat about whatever you need to help make sure you're getting great advice when it comes to either buying or selling a home in the Surrey or surrounding area. And speaking of selling a home, be sure to download a copy of our free PDF, 4 ways to increase your home's value by up to 5% in only a weekend. If you are someone selling your home, you definitely want to pick up a copy of this.

We Dove deep to get great information and this is the actual information we provide to our home sellers to help them absolutely maximize their sale price. For any of you that are buying a home out there, we didn't forget about you. We've got 4 secrets to finding off market properties and how to avoid competing against other buyers and homes on the MLS. It's no secret that the market is busy and you don't have to go into multiple offers with these underpriced listings. Every single time you find a house you love, there's off market properties that could be great too.

So download the guide and figure out how to find them. Hey look, I want to thank you for watching. Be sure to leave a comment below and let me know your thoughts on mortgage brokers. What you love, what you maybe don't love or if there's anything that I missed. Again, I want to stress mortgage brokers are incredible. They're very great at what they do and they are a huge asset to anyone looking to buy a home. However, now you know all the things you need to be cautious for when selecting a mortgage broker. Guys, I'm Darin Germyn from the Germyn Group where we know you've only got one chance to either buy or sell your next home. So again I'm here to help you get it right. We'll see you next time.

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Darin Germyn PREC* & Adam Howsam
Macdonald Realty LTD | 604-542-2444 |
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