Ever wondered what exactly a mortgage broker is and how they can help you? We’ve answered five questions below so you can be one step closer to owning your own home.
What are the benefits of using a Broker?
Firstly, they ‘shop’ the home loan market for you, saving you time. Everyone knows shopping around could lead to a better deal but it can be time consuming – so a broker takes the hassle out of the process for you and researches the market.
A mortgage broker works closely with a panel of lenders, including the big banks and smaller lenders you may not have heard of. They search through the range of available loans and guide you through the application process. Plus, they stay on top of the changing lender requirements so you don’t have to.
How does a Mortgage Broker save me money?
Some people choose to stick with the bank they have their account with – but they could be missing out on a more competitive home loan deal elsewhere! This is where a mortgage broker comes in. They have an up to date knowledge of the home loan market – the different types of lenders and deals, any strings attached to a particularly low rate loan and more. This means your mortgage broker can find a competitive deal that is right for your needs and prevent you from potentially choosing a more expensive or unsuitable loan by showing you what else is available.
How do they help me find the loan that’s right for me?
When you’re in the market for a home loan it can be tempting to look for the loan with the lowest rate. But that can be a mistake. Interest rates and your life circumstances can change over time, but your loan features will remain in place.
A mortgage broker can explain how various home loan features work, and by taking the time to understand your needs and circumstances, your broker can help you choose the loan features that may be of most benefit to you now, and in the future.
How does a broker help me understand my borrowing power?
There are plenty of online calculators you can use to estimate your borrowing power but nothing compares to home loan advice tailored to your needs.
That’s because different lenders have different lending criteria, and this can even vary according to the type of property you plan to buy.
Your mortgage broker can help you figure out just how much you can afford to borrow based on your income, assets and liabilities, and that gives you a great head start in developing a home buying budget and some direction for your property search.
How does a broker help my loan be approved?
As a home loan expert, your mortgage broker knows what it takes to get your home loan application over the line with the right lender.
They’ll explain any steps you may need to take to tidy up your finances before applying for a loan, and identify any possible red flags that could work against you.
Speaking to a mortgage broker early in your home buying journey could make the process much simpler and quicker, so chat to us today!
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement