What Dave the Mortgage Broker does!

My thanks to Willie, Michele and Ryan for their excellent posts on their businesses. I wanted to add some info about what MortgageDave does.

I am a mortgage broker with Invis, Canada’s largest mortgage brokerage firm. The affiliation with Invis gives me the negotiating power of a national company when dealing with the banks and other lenders

I started my own company in January, 2006. I have 19 years of lending experience and I wanted to do something I love for a change. Being a mortgage broker allows me to help my friends and referrals with their home financing strategies.

I can arrange a mortgage for anyone anywhere in Canada. I offer new mortgage financing, refinancing for equity take out and renewal financing for anyone whose mortgage is up for renewal and wants to make sure they are getting the best deal. Did you know that 80% of people whose mortgage is up for renewal just sign the renewal agreement the bank sends in the mail? These renewals are usually higher than the current market rates. I specialize in residential financing but I have a business partner who is a commercial broker.

My services are free to my clients as I am paid by the lender for originating a new mortgage. If I have to arrange a mortgage from a private lender the client would typically have to pay a fee for the services as these lenders don’t pay for the deals.

I work with my clients to discuss their home buying and financing strategy to make sure we are not only meeting their financing needs today but that we are able to plan for their future needs as well.

The mortgage process:

1. I meet with the client by phone to discuss what they are looking to do and to gather information.

2. If they haven’t bought a place yet I do a mortgage pre-approval so that they know what they can afford and their rate is guaranteed for 4 months while they look for a place. If the rates go up during this time they are covered and if they go down in that time I will get them the lower rate.

3. Once they identify a property I shop their mortgage deal around and find them the best fit for their needs.

4. I either meet with the client to get the mortgage signed or I send them all the documentation by secure e-mail. I work around their schedule so there is no taking time off work, etc.

5. I submit all documentation to the lender and they instruct the lawyer in regard to the closing documents.

6. The clients go to lawyer to sign documents and then wait to move in.

During the above steps I “stick handle” any problems or issues with the lenders so that my clients can just focus on their move. I never forget how stressful buying and selling real estate can be, so I make sure I take the time to explain things carefully to my clients. I assure them there are no stupid questions so they should feel free to call anytime.

Unlike a banker I am not paid based on the interest rate charged but rather the size of the mortgage. Accordingly, I will always send the client to the lender who has the best product for their needs.