A mortgage broker deals with banks, private lenders and other financial institutions on behalf of borrowers looking for home loans. They use their best negotiating skills to get you the loan you need.
The mortgage broker Central Coast, works with you to:
- Apprehend your requirements and objectives.
- Work out your eligibility to borrow.
- Find different options for you to decide what suits you.
- Explain the various types of loans and their cost, including interest rates, fees and other attributes.
- The broker will put in your loan application on your behalf and manage the process till the settlement.
How do mortgage brokers receive their payments?
Often, borrowers do not pay any commission, as the lenders pay the broker a fee or commission for getting them business. While some brokers charge a fixed fee regardless of the type or tenure of loans, others charge a higher fee for offering certain loans. Some lenders might charge you a fixed fee, so it is better to avoid them.
What you must check before finalising with a broker:
1] Their licenses and areas of operation:
Before meeting with a home loan broker in Newcastle, ensure they have a licence to advise you on a credit loan. You can search ASIC Connect’s Professional Registers by clicking the ‘Select Register’ drop-down menu in the Credit Representative and Credit Licensee pages. If you don’t find their names, do not deal with them as they might be operating illegally.
2] Determine your must-haves and nice-to-haves:
Before seeing a broker, consider what matters most to you in a home loan. Do you want the lowest-cost loan to have additional features, such as making extra repayments? Having these on hand will make the discussion with your broker easier. Make a list of what you can’t do without and would love to have.
3] Meeting with a mortgage broker
Carry your list of must-haves and nice-to-haves. Your broker will give you different options and explain how each works, its costs and why it’s in your best interests. Ask the broker to find alternatives if you are unhappy with any choice. Secondly, tell them if you are comfortable with a particular lender, such as your current bank.
A home loan is a long-term debt, so be aware that even a slight difference in interest rates can add up to your expenses and affect your budget. If a lender offers you a lower interest rate, it will help you save lots of money.
What must you ask your loan broker in Newcastle?
1] What Types of lenders do you deal with?
2] What various types of loans do they offer?
3] What are your payment terms for your advice?
4] Do all brokers charge the same?
5] What are the various fees I will have to pay on taking the loan?
6] Can you explain each type of loan and what would be the best in my case?
7] What is the difference between the cheapest lender and others who are willing to provide my nice-to-haves?
8] What is the point of lender’s mortgage insurance (LMI) and can you help me avoid it?
Once you are clear with the answers the broker gives, take them in writing from your broker. You will be able to determine
- type of loan
- loan amount
- loan term (duration)
- current interest rate
- fees you have to pay
Make sure you’re comfortable with what you’re agreeing to. If there’s anything you’re not sure about, ask more questions.
Never sign blank forms or leave details for the broker to fill in later. If you feel pressured into signing, go to another broker.
Advantages of partnering with a broker for your home loan:
1] Saves you time
When you deal with a mortgage broker, you only need one application instead of filling out forms for each lender. Your mortgage broker will also help you compare recommended loans and inform you about accurate cost differences, with current rates, points and ending costs reflected for each loan.
2] Provides access to multiple lenders
A mortgage broker is familiar with the expectations of several lenders and using their services will save you the effort of visiting different moneylenders and wasting time on paperwork. It also helps you save money and guide you to the right ones that meet your requirements and expectations. They can provide you with several options for mortgage loans from different lenders. If your broker has great experience and network, you have a better opportunity to obtain the loan product and the best suitable interest rates.
3] Gets you the best deal
A home loan broker puts your interests ahead of the money lenders even though the latter pays them their commission. They have a wide network and help as knowledgeable consultants and problem solvers to offer you the most significant deal regarding interest rates, reimbursement amounts and loan products. The brokers will ask you to determine your needs and short- and long-term goals.
4] Mortgage brokers have the skills and expertise to meet your deeds
A mortgage broker guides you through any situation, handling the process and smoothing any bumps. In case you, as a borrower, have credit issues that you tell the broker, they may not waste time and effort going to lenders who do not entertain such candidates. Instead, they will put your case in the hands of lenders who may offer finance but at a higher interest rate.
5] No hidden costs
Most lenders offer loans on a wholesale basis to mortgage brokers and offer the best rates available in the market, generally making the total loan cost more affordable for the client. A reputable mortgage broker will disclose how they are paid for their services and detail the total costs for the loan.
6] They provide personalised service
Reputable mortgage brokers ensure you get customer support and service. They will help you take each step and finish quickly, be available to you and advise you throughout the closing process.
Conclusion
Checking the credentials of the mortgage broker is an essential step. Check the tips above to learn how to find the best brokers.
