Searching for the Right Mortgage Broker
Purchasing your first ever home is a life decision which is not easily made. It involves huge costs which mostly come from hard-earned savings. These days, due to the rising cost of housing, individuals usually avail of loans to purchase their homes so that payments can be made to fit in one’s budget.
However, due to the many types of financial products made available to prospective buyers these days, choosing which type of loan can be pretty much confusing. It is for this reason that despite the deluge of information made available on the internet, many still opt to avail of the services of mortgage brokers. Mortgage brokers are the individuals, or institutions, that can help give you proper advice when it comes to home mortgages. Blutin Finance can help you with the paperwork that needs to be done and eventually get your loan application approved.
Recent statistics show that there are an estimated 17,000 mortgage brokers all over Australia and the number is still growing. There are many good mortgage brokers but not all of them are equally as good. Given that fact, what are the things you need to consider when looking for a mortgage broker? Someone who can get you the best deal as you are about to purchase your first home?
Just like in any situation, the first step would be to ask around for recommendations from close friends or relatives. Ask from people who have acquired the services of a mortgage broker as they can share with you feedback and first-hand information.
Mortgage brokers nowadays in Australia usually carry with them a certificate to show that they have a background in Finance and Mortgage Broking, at the very least. They are supposed to be licensed, if not authorized to act as a credit representative. It would be a plus if they have a degree in finance or any related course so you can be assured that they give you sound advice based on what they know.
Not every bit of knowledge is gained through books. Some are gained through experience. Ask your prospective mortgage broker about the number of years he has been working as a broker. His years of experience make him more familiar with the ins and outs of loan applications, as well as ideas as to what loan will c your current situation.
CHECK HIS PORTFOLIO
One advantage of seeking the help of a mortgage broker is his access to several institutions which can offer different kinds of products to suit your needs. This is known as his “lender panel”. As his suggestions are limited to products within his lender panel, it would be wise for you to choose someone with an extensive lender panel to give you more options.
TIME FOR DISCUSSION
Look for someone who is willing to ask you questions and discuss with you your current financial status as well as your needs. Make sure that he is willing to meet up with you to fully assess your situation. It is only through these discussions where your prospective mortgage broker will get an idea as to what loan will best suit you.
KNOW WHOM HE WORKS FOR
Despite their lender panels, mortgage brokers usually work for banks, if not for companies who are usually affiliated with certain banks. Make sure that their suggestions are not fully influenced by the institutions to which they are directly affiliated.
KNOW THEIR FEES
Although mortgage brokers are paid by commission, the manner in how they are given their commission may also affect how they advise you. Some mortgage brokers are given an initial fee upon approval of the loan, while some are given incremental amounts of their commission followed by a lump sum given to them after some months. Know how much is given to them per loan they recommend so you are assured that their advice is not based on how or what they earn.
CHECK FOR DOCUMENTS
Mortgage brokers are supposed to hand over to you two written documents: the credit assessment and the credit guide. These are supposed to contain information with regards to their contact details, commissions received, and their recommendations based on their assessment of your current financial situation. This is to assure you that they have done things according to the book and that they have worked on what is best for you.
It would also help for you to do some initial research yourself as to what loans can be made available to you so that you can open this up for discussion with your broker. Your broker is there to assist and guide you by giving you sound advice and proper insight. However, the last say and decision will always be made by you.