Mortgage Brokers
How to choose the best mortgage broker for your small business
Mortgage brokers have the job of matching up mortgage lenders with the individuals and businesses who want to borrow money. In the past, lenders took on full responsibility for distributing their funds. However, as the mortgage market became more complex and competitive, a need developed for financial professionals to act as intermediaries between lenders and borrowers. And so the role of mortgage broker was born.
If you’re an entrepreneur who is looking to take on a mortgage (perhaps as a means of buying property for your company’s office), a mortgage broker can help you get the best deal. He or she can evaluate your individual wants and needs and help you find the mortgage with the best terms and lowest rate.
Unique Problems for Small Business Owners
Traditionally, it has been quite difficult for self-employed individuals to get a mortgage. Small business owners typically try to keep their taxable income as low as possible (it make sense to do so, since the less you pay in taxes means the more you keep). However, this can cause problems when applying for a mortgage.
Lenders want to know you’ll be able to make enough money to pay back the mortgage, so they look at your income figures. Many entrepreneurs have a hard time convincing lenders that they earn enough income to qualify for a mortgage.
Luckily, things are changing. Lenders are beginning to realize that small business owners are valuable clients. In the case of lenders who are still wary about small business owners, mortgage brokers are helping to bridge the gap and get entrepreneurs the mortgages they want.
Finding a Broker
Here are a few quick tips for finding the best mortgage broker:
- Value experience. The best mortgage brokers are often the ones who have been in the business for years. They will know the ins and outs of the industry and should be able to apply their vast experience toward getting you the best mortgage possible.
- Ask for references. Before you hire a mortgage broker, ask him or her to provide you with references. Contact other entrepreneurs who have worked with the mortgage broker and ask about their experience. Can they give a recommendation?
