Have all the important information ready for your first broker meeting to get the right mortgage, fast.
Arranging a home loan can seem complex and stressful but it needn’t be. Having all the information you need so can respond to your broker’s questions and will make it easier for them find the right lender and product to suit your needs. With the right broker, you can sail through the application process with a lot less hassle so you’re ready to buy.
Winner of The 2016 Better Business Award for Best Regional Broker in Victoria, Anthony Clough has been helping his Horsham clients buy homes for nearly five years. Having held roles in home finance and banking before joining Aussie, Anthony has outstanding mortgage knowledge and the skills to match the right products with each client.
In the process of guiding clients through the mortgage maze, Anthony covers a number of areas, guiding them the whole way – from their first meeting right up until they’re ready to buy, settle and move in.
First off, you’ll need to have all your financial details at the ready. Even if you have a rough idea of how much you can afford to borrow, a broker can help you arrive at a figure that may take into account things you haven’t yet considered.
“At Aussie we send clients a pre-meeting questionnaire and it helps if they can complete all of it in advance,” says Anthony. “There’s a lot of detail to work through – including your employment details, savings history and any loans and assets you already have, including your super balance, motor vehicle, credit cards etc. When we meet, it’s a good idea to bring original payslips and any other documents we’ve requested to support your answers.”
It might seem like a lot of effort, but any lender will be expecting this kind of background information to process your application. And if you can provide the majority of this in advance, a broker can help you figure out how much you can afford to borrow, taking into account all the relevant costs plus any concessions you may be eligible for.
Be ready to borrow responsibly – or get help
If you have a reasonable amount saved as a deposit, then it’s going to help you buy a more expensive home. But that doesn’t necessarily mean you should use all your savings and borrow up to the maximum lenders will allow for your income.
“Sometimes it can be a good idea to have a little in reserve after buying,” says Anthony. “If you have $60,000 saved, consider keeping $10,000 in your redraw or offset account. It will give you a buffer in case something changes your financial position – starting a family, getting married or a career change.”
Another option you might want to explore before meeting your broker is getting help from your parents. If you have a decent income but you’re short on your deposit, a family guarantee or pledge can help you apply for a larger loan than you might otherwise be able to. “It can be worth asking parents about this early,” says Anthony. “And if they’re willing, they can join in with the first meeting and find out more about their responsibilities with this type of financial arrangement.”
Working as a team
When your broker has found you the right loan and arranged pre-approval, you’re ready to start shopping around in earnest. Following a successful offer and exchange of contracts, your broker will continue to work with your lender, real estate agent and conveyancer to keep things moving along towards settlement.
“Any Aussie broker will take an active role in preparing you and your finances for settlement,” says Anthony. “It’s just part of what we do. And many of us will be happy to meet you on evenings and weekends throughout the process so you can get on with your job and other commitments. Getting a mortgage and buying a home might take up some of your time but it shouldn’t take over your life.”
What information have you prepared for your mortgage broker and home loan application? Tell us about your experiences in the comments below.