When searching for your first home loan, what should you be looking for in a mortgage broker?
With hundreds of mortgage lenders out there and thousands of products, getting help from an expert can be really valuable. As well as saving time and money, a good broker can make the difference in getting the loan, and ultimately the home, you’re after.
Make your mortgage a top priority
Talking to a broker at the beginning gives you advantages, including knowing what you can afford and any restrictions lenders might have regarding the property you buy. Lending criteria aren’t just based on your income, employment, credit and savings history. The property you’re buying is part of the deal too, so it pays to know if there are postcodes or property sizes that lenders won’t touch.
Other broker benefits
A good broker will have the knowledge to navigate all the relevant criteria for you and your property purchase. And this can save you from making unsuccessful loan applications that could affect your credit report. Too many unsuccessful applications in a short space of time can make you appear less favourable to lenders.
As well as helping pinpoint the right lender and product for you, your broker can make sure you’re getting the right deal. They’ll be aware of how all the loan costs add up – valuation fees, settlement costs etc – so you can choose based on the complete price tag rather than interest rates alone.
And a good broker will also be an ally throughout your home buying journey. The decisions and paperwork it takes to agree to a sale can seem overwhelming, but this is really just the beginning. You can think of your broker as a trusted partner who can help you with the whole transition to becoming a home owner.
Your profile and wish list
The type of mortgage, and broker, you’re looking for will depend on your financial position and your lifestyle goals. As well as asking you to complete paperwork about your employment, income and assets, a broker should also ask questions about your goals. Maybe it’s a priority for you to pay off your home loan faster than the agreed loan term. Or perhaps you’re planning to grow your family and may need to reduce repayments for a while.
Whatever your circumstances are, make sure your broker understands your priorities and offers you choices that make sense for you.
Your broker checklist
Brokers come from different backgrounds and it’s important you choose one with a track record to support your goals. If you’re buying property to start a portfolio for example, you’ll need a broker with hands-on experience with investment loan products.
Finding out how many lenders and products a broker has access to is essential. The more products they can compare to come up with suitable options, the more value and flexibility you’re likely to get from your number one choice.
You’ll also want them to have the right qualifications and certification so you can trust them to be an expert and knowledgeable and abide by professional codes of conduct. They should have either a Certificate or Diploma in Finance and Mortgage Broking, plus membership with the Mortgage and Finance Association of Australia, (MFAA).
With more than 1000 experienced brokers Aussie can provide a specialist to meet your home loan needs – at no charge – today.
Are you looking at using a mortgage broker to buy your first home? Share your thoughts and ideas in the comments below.