If you are stepping forward into the housing market, are possibly thinking of investing or are even about to start up a small business, you may be trying to figure out if turning to a mortgage broker is in your best interests.
Mortgage brokers are individuals or whole organisations who work closely with lenders in order to devise loans and aid in the entire process up until it is completed. They will gather all the relevant documentation from you, which is then forwarded on to the prospective lenders for processing and approval. Mortgage brokers have thorough knowledge and insight into real estate solutions and property loans suitable for numerous financial situations.
Each person’s circumstances are unique, which is why multiple factors need to be considered to determine if a mortgage broker is the right professional for you. Here are some pros and cons of relying on the services of a mortgage broker.
Pro: Mortgage brokers have better access
There are multiple lenders on the market that only work exclusively with mortgage brokers. In some cases, you may be unable to contact a lender directly as lenders specifically rely on brokers to be their middle man in bringing them suitable clients. What’s great about mortgage brokers is that they have access to numerous loans from a board of 20 to 30 lenders.
Due to the magnitude of business generated between brokers and lenders, there is also the potential for brokers to acquire special rates from the lenders. Mortgage brokers can obtain rates lower than you may be able to get on your own.
Pro: Mortgage brokers are able to manage your fees
If you are working with a new lender or if you may even be taking up a new mortgage, there are copious fees that come with such situations. Application fees or even appraisal fees can be very daunting. Occasionally, mortgage brokers can provide you with some assistance in getting your lenders to turn down some, if not all, of the fees at hand. Not only will this relieve you of some stress within the whole process, but it can save you hundreds to thousands of dollars.
Pro: Professionals can offer you expert advice
Mortgage brokers are experts at what they do, which is why they are attuned to working with clients that require unique demands. Finding an appropriate loan that suits you can be quite challenging. With the help of an experienced mortgage broker, they will work closely with you to acknowledge the financial situation you are in and where you expect to end up at the end of the process. Mortgage brokers will assist you by providing tailored advice to meet your needs and goals.
Pro: Saves you from a complicated and lengthy process
Acquiring services from a mortgage broker has been more trouble-free than ever before. Many Australians obtain assistance from mortgage brokers to save both time and money. Whether you need to meet at your home, at another location of suitability, or just over the phone, mortgage brokers are available to provide added convenience to your loan process.
Home loan selection processes can be very complex and extensive. Unlike banks, mortgage brokers can streamline the home loan process substantially. They deal personally with the initial assessments and loan lodgements in order to gain faster approval rates. All that the clients have to worry about is providing any required documentation and filling out the initial application. Other than that, you can expect an efficient and smooth-running process.
Con: Some mortgage brokers don’t have access to lenders
Even though a majority of lenders work with mortgage brokers, some do not work with brokers at all. If you have a specific financial institution in mind, it is important to note that you confirm that your mortgage broker can work alongside a lender before moving ahead.
Con: Mortgage brokers may not be able to source you the best deal
There are many customers on the market that suspect that mortgage brokers are able to produce the best deals. In some instances, this is not always the case. Some lenders can present you with the exact rates that mortgage brokers can offer, if not even better.
Utilising a mortgage calculator is a great and simple way to double-check that your broker is putting forward an excellent deal for you.
Con: You may be unfamiliar with a mortgage broker
It may be somewhat tricky working with a mortgage broker if you have never worked with one before. It may take a couple of attempts to encounter a good relationship with one and find a broker that is a good fit for you.
Considering that you may not have a current relationship with an existing mortgage broker, when attaining your application, it may be necessary to issue additional documentation, such as your evidence of income. This can ultimately produce a delay in the loan process.
Are you ready to depend on the services of a mortgage broker? Get in touch with a reputable mortgage broker today!
Navigating through financial decisions for all aspects of your home loans, loans for your small business or personal finance needs on your own can be quite difficult. It is a good idea to speak to a credible mortgage and finance broker to help and offer you financial advice that may be outside your area of expertise. Professionals are available to assist you through the entire process.