Buying and owning a home, exciting. Searching and arranging for a home loan that fits your financial situation on your own, not so exciting. Many home owners find the home loan process can be complex and time consuming. A mortgage broker can compare the wide range of loans available in the market on your behalf and use their expect knowledge to find the one that best suits your specific needs and circumstances. Moreover, they will manage the application for you, taking care of all the paperwork.
What Is a Mortgage Professional?
A mortgage broker is a middleman between the borrower and the lender, who negotiates the loan on your behalf. A good mortgage broker should have in depth knowledge about all the lender’s products, processes and their policies.
A mortgage broker operates independently from individual banks and lenders. A good mortgage professional will use their expert knowledge and expertise to guide borrowers by on the many loans available in the marketplace. An experienced mortgage professional should be able to interpret the type of loan that suits their client’s needs by looking at the individual client’s circumstances and financial situation.
What Are The Advantages Of Using A Mortgage Professional?
• Saves you the legwork of having to research multiple lenders and products to compare their mortgage terms, rates and features.
• Mortgage brokers interact with multiple lenders every day so are up to speed with the latest deals and can often get you better deals than you would get by going directly to the lender.
• As experts in the field mortgage brokers know lender policies inside out. If you have an unusual circumstance they will know which lenders to use to ensure your loan gets across the line.
• A trusted mortgage broker will guide you throughout the entire process and offer updates and advice to ensure the process involves as little stress as possible.
What to watch out for when using a mortgage professional?
There are literally thousands of home loan products in the market and more being added to the portfolio each day. According to Australian Mortgage Snapshot Study 2015, 83 per cent of Australians choose their home loan provider based on interest rates.
Some brokers misleadingly claim to be whole market brokers when they only write deals with specific mortgage lenders. When selecting your mortgage broker find out how many lenders they have on their panel and ask about their commission structure. This should eliminate bias when making recommendations.
Tip: Avoid any brokers that charge fees to you.