Monday 14th March 2016A Mortgage Broker is a Professional Who…
A mortgage broker is an intermediary, a go-between, or a middleman between the borrower and the lender/bank. Brokers work directly with you, the borrower, and the lender to help borrowers to qualify for a loan and get the lender’s approval of the loan. The broker’s job is to liaise between the two parties in a mortgage or loan transaction.
How Does the Mortgage Process Work?
The borrower initiates the process. You either go to the bank to enquire about how to be qualified for a mortgage or seek help from a mortgage broker. Nowadays, more and more people go to a broker to process their mortgages.
When a loan is to be processed through the broker, you have to find a competent mortgage broker. When a broker has been selected, what follows is the gathering of your financial documents. These documents are used to support the loan; that is, to determine whether the person borrowing has the capacity to pay for the loan. Pay slip, savings account with banks, and other income information, including current loans and credit card details, are submitted to the broker. If you decide to go directly to the bank, same information is required.
Once the broker has all the necessary information, the mortgage broker begins the process of looking for products that best fit the needs of the borrower. Brokers are able to access various products from several banks and lenders so they are able to easily and quickly find the most suitable option for the borrower. Unlike bankers who are only limited to the products offered by their banks, brokers can select from various products based on what you are looking for. You should take active participation during the process although it is the broker who actually does the research and paperwork. You should communicate to the broker how much loan to get, what type of loan you want, and how long the payment terms should be. Ultimately, it is the borrower who decides. The mortgage broker only presents the best possible options.
When everything has been ironed out, the broker will submit the loan application to a lender. During the loan process, the broker communicates between the parties to make sure that everything runs according to plan. You don’t have to deal directly with the bank if you opt to use a mortgage broker to help you. All the correspondences will be directed to the broker.
Aside from helping you out with the loan process, mortgage professionals can also shop rates for you. Shopping for rates occur after all the paperwork has been taken cared of. Shopping around is one of the key advantages that a mortgage broker has over a bank. Brokers have the ability to look for rates from various banks and lenders simultaneously so they can find the lowest rate or best possible loan program for their clients. If you opt to go to the bank, the loan officer can only offer products and rates from a single bank.
Mortgage professionals serve as your loan guides too. Throughout the entire loan process, brokers will keep everything in check until the deal is sealed. So, if your loan is declined, it does not mean there’s no more chance for you to get a loan. The broker simply applies to another lender or bank.
Usually, referral from friends, relatives, or colleagues is the starting point of finding a broker. If people who are close to you can recommend someone whom they had worked with in the past, then you should take into consideration their recommendation. After all, they wouldn’t suggest someone whom they had an unpleasant experience with, right?
However, take into consideration the advice of experts: do not settle for one mortgage broker. Set up a meeting with at least two or three brokers so you can compare the products that they offer, including the rates of interest and the loan package. It is likely that one broker may have a different recommendation from another, since it is a possibility that one broker may be affiliated with one lender while the other is not affiliated with the same lender. It is always to your advantage if you get to talk with more than one broker since this would give you the chance to compare.
In Australia, there is one site where you can find competitive and experienced brokers all over the country. 1300HomeLoan is the largest, most reputable, and fastest growing broking companies in the country. Mortgage brokers featured in the website are experienced in their fields, having passed the rigorous checking and evaluation of the company. Aside from being specialised in mortgages, they are also experts in various fields like banking, investment, and many others. Depending on what you need, there will always be a mortgage broker who is capable of meeting your demands as a borrower.
There are three ways to connect to a mortgage specialist. You can go to the site, find the Tools page, and Find a Broker. Select the area where you are located and you will be given a list of brokers and a simple description of their qualifications. If you cannot find a broker within your area, you can call our customer service hotline and our customer care associates can connect you to a broker, wherever you are located. We have brokers in the capital cities of Melbourne, Perth, Brisbane, Adelaide, and Sydney. There are also brokers available in most major regional cities. You only have to call 1300 466 356 and we are ready to assist you. You can also send an email at email@example.com and wait for our response. We assure you that we will respond as soon as we receive you email.
Whether you are in search of financing options to purchase a new home, refinance a loan, renovate or build, invest in property, or check if you are eligible for a loan, our services are available to you during office hours from Mondays to Fridays.