For most people, the biggest single expenditure or investment they’ll ever make is buying a home. And to buy a home, you need a lot of money. Many cannot raise the kind of amounts needed without a loan and that brings us to the importance of experts in this field: Mortgage brokers.
Can’t you get a loan without a mortgage broker?
Yes, you can. However, you need to understand what you stand to lose by NOT having one. So to help you understand the importance of having a good mortgage broker on your side, let’s take a look at the benefits of using one…
1. You Get to Work Things out at More Convenient Times and Places
If you want to talk to a bank directly and get everything done via a loan officer, you’d have to make out time to visit during office hours. You normally don’t expect a bank worker to meet you to discuss getting a loan on a weekend.
However, when you’re dealing with a mortgage broker, you get the privilege of more flexibility. They can work things around to find when it’s most convenient for you. Furthermore, they are usually more open to working with you at a place of your convenience.
While this might NOT sound like a big deal if you have so much time on your hands or are self-employed, it is if you work for a company. Imagine having to resume your full-time work while trying to find the right property to buy. On the other hand, consider how difficult it would be if you are trying to sell a home while working a full-time job.
For most, this is a big deal and one of the benefits of using an expert such as a broker.
Now while we might NOT be able to recommend one for everyone everywhere, we can if you are looking for an experienced mortgage broker in Sydney or any other location for that matter.
2. They’ll Help You Do Due Diligence
Now we are assuming you get a true expert who does his or her work ethically. If you get such a mortgage broker, you can count on them to handle the necessary filings and things like that. First, they’ll help you identify the right kind of facility for you and your peculiar situation. Furthermore, they’ll help you with the application (explaining the fine print to you) and ensuring you get all the steps right.
If there are documents you need to get ready, you can be sure that you’ll be advised accordingly. This will save you blushes and time. A good one will also help you get pre-approved and take advantage of every incentive or grant from the government.
You shouldn’t be bothered about missing out on a critical step or NOT knowing the right thing to do at any turn. That’s what they are there for. Now you can focus on the exact kind of property you want and other things that you alone should decide.
3. You Benefit from their Years of Experience
It is said that some folks have forgotten more on certain subjects than you’ll ever get to learn. So if you deal with an expert who does mortgage every working day of their lives, you have years of experience on your side.
While you can read up on the various loan types (here’s a good resource: https://www.investopedia.com/mortgage/mortgage-guide/how-to-choose-best-mortgage/), what they mean along with their advantages and disadvantages, an expert will explain nuances you might have missed.
You can easily ask questions about things that confuse you and expect answers that clarify things for you. And with clarity, you can be sure to make better decisions.
4. They’ll Make It Easy for You to Compare Loans
After you’ve determined what kind of property you want to buy and the kind of mortgage that serves you best, you are advised to compare rates and the total cost of loans across different lenders.
Your broker has access to different loans for different profiles from a variety of lending institutions. With a much wider pool of lenders to work with, they are well-positioned to help you get better rates and offers. You can quickly compare what each lender offers and make a decision that’s best for you.
If, on the other hand, you choose to work directly with a bank’s loan officer, all you have to work with is what that specific organization has to offer.
5. They Make Pre-Qualification Easier
Did you know that a bad mark is left on your credit history every time you get denied a loan? Yes, we know the reason given might have been something you had little control over. But do note that if these marks pile up, you’ll have greater difficulty getting a loan.
So what would a good mortgage broker do for you?
Well, they’ll do research using certain applications to determine which lenders will be most favorable to you. Establishing your credit history and matching it with lenders who they know will be favorably disposed to giving you a facility, will increase your chances of being successful. This will save you the unwanted marks on your credit.
6. You Get Personalized Service
If it wasn’t obvious to you already, using a mortgage broker means you get personalized service. Since they’ll have to take out time to understand your peculiar needs and situation, they’ll be in a position to serve those particular needs.
If you have to deal with a loan officer, they might be tempted to push you into one of the options they have in their bank even if it doesn’t meet your peculiar needs.
To learn more about the differences between a loan officer and a mortgage broker, click here.
Everything we’ve discussed here the benefits of getting a mortgage broker on your side is in the assumption that you get the right person. The right person is ethical, cares about giving you the best, and is an expert on the subject matter. If you get such a person, you’ll enjoy these benefits and more.