Mortgage brokers 101
When it comes to something as important as buying your first home, having a home loan expert on your side can be a real confidence booster
What is a mortgage broker?
The role of a mortgage broker is to help you select the home loan that is right for your needs. That’s important because while there is no shortage of loans to choose from, finding the time to compare even a fraction of the loans available would be incredibly
That’s where a mortgage broker comes in. They work closely with a panel of lenders including the big banks as well as smaller lenders that you may not be familiar with. They basically ‘shop’ the home loan market for you, saving you time. Everyone knows shopping around could lead to a better deal but it can be
Plus, they stay on top of the changing lender requirements so you don’t have to.
But it’s not just about comparing home loans. Even before you are ready to buy a home, a mortgage broker can offer valuable support explaining the home buying process and answering key questions you may have including “How much can I borrow?”, “How much deposit do I need for a first home?” and “What will my repayments be?”
Why use a mortgage broker?
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 does a mortgage broker get paid?
It’s easy to be
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
Preparing for your meeting with your broker or bank
It’s never too early to start planning for your first home, so if you’re at the very beginning of your home buying journey, just bring along a list of the questions you’d like to ask.
If you’re closer to buying a place of your own, it’s a good idea to gather together some documents that will give your mortgage broker a better idea of where you stand financially. After reviewing your documents, your mortgage broker will also be able to explain any steps you could take to help your home loan application get the thumbs up with the right lender.
Some of the paperwork you’ll need includes:
- Pay slips from work
- Bank statements that provide a record of your savings
- Some photographic ID such as a drivers licence or passport
- Statements of any other loans you may have including credit cards.
If you have seen a property you’d like to make an offer on, bring along the contract of sale to the meeting too.
With the support of a mortgage
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Take the next step to buying your first home
- 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