Taking out a loan can be an overwhelming process, considering the dollars at stake, the drowning choice overload and the confusing bank jargon.
This is why more and more people choose to work with a mortgage broker. A reliable mortgage broker can guide you through the process and help you find the most suitable loans for your financial goals with minimum risk.
However, before committing to a broker, it is important to do your due diligence and make sure you work with a professional who will serve your needs best. Here are a few questions you can ask your broker before writing a mortgage.
Why Should I Hire a Broker?
Ask why you should go through a broker instead of heading straight to the bank. This will allow your broker to give their sales pitch and introduce their services and expertise, which may include a wider range of selections and rate cuts.
How Will You Earn Your Income?
A lot of brokers won’t cost you anything, as they earn commissions from every approved loan with the creditors. However, some brokers may charge you with flat-rate or percentage-based service fees for credit assistance.
What’s Your Qualification?
Check if your broker’s a member of industry associations such as the Mortgage Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA). Members of these organisations will have completed proper training in financial services and be equipped for brokerage work.
How Much (and What Kind of) Experience Do You Have?
An experienced broker will have more knowledge of the industry as well as the varied needs of borrowers. However, not all experiences are created equal – some brokers specialise in home loans, while others are more well-versed in working with investors. It is a good idea to find a professional who deal with clients with similar cases to yours.
Who Are the Lenders You Work With?
This is not just to find out the financial institutions you have access to, but also the range and variety of options that your broker can offer.
What’s the Process Like?
Approval and settlement times may vary depending on the loan and/or lender. A good broker will be able to give you an estimate, so that you can plan your transactions accordingly.
What Are the Terms?
Loans come with a range of unique features and conditions – it’s always wise to read the fine print and understand the full picture before signing anything. Quiz your broker on the full rundown of the mortgage’s monthly payment amount, associated fees, terms, early repayment penalties and interest rate options. The ideal broker will be able to skip the jargon and explain these to you in layman’s terms.
What Should I Prepare?
A good broker will provide a comprehensive checklist of the documents you need to get the approval process as smoothly as possible. These may include – but are not limited to – IDs, pay slips and credit history records.
Ready to speak with a broker? Call us on 1300 HOMELOAN (1300 466 356).