Thursday 10th March 2016Why Use A Mortgage Broker?
The mortgage application process can be a headache. It can also be difficult, complicated, and time consuming. You will be asked to answer and fill up many forms and questions requiring details about you, your spending, and pretty much every information you may not be ready to divulge but have to. With this in mind, hiring an experienced and knowledgeable mortgage broker may save you from the stress and trouble. It may seem costly at first but it will save you more funds in the long run, too.
Why Does Hiring a Mortgage Broker Makes Sense?
You may think that hiring a mortgage broker is not necessary anymore, especially if you are looking at how costly moving from one home to another and refinancing can be. But before you finalise your decisions, here are four reasons why hiring one is going to benefit you more than you may have realised.
1. A mortgage broker knows the industry very well
The criteria for mortgage are strictly tight and more changes have been added in the past few years including the Mortgage Market Review. These were all designed to make sure that borrowers can afford a mortgage even if a rate rise occurred.
With so many changes happening in the mortgage and lending industries, it is hard to stay in the loop, especially if it is your first time to apply for a mortgage. A mortgage broker knows the ins and outs of the industry and their knowledge of how things work can be very valuable to anyone who will get their services. Aside from that, they are able to speak with the lenders directly so they have an understanding of how the application process works. They can also point you to lenders who are able to process your application with less hassle and delay.
They also knowledgeable of the background criteria lenders have and this knowledge helps them in giving you reliable advice when you are filling up your application.
2. A mortgage broker provides advice you can trust
Choosing the right mortgage for you isn’t that easy and simple. There are a lot of things to consider so an input from a qualified mortgage broker can be extremely helpful.
They should be qualified before providing you an advice. If you call and speak directly to the lender’s call centre representatives, you may not get the advice you can rely on. Aside from that, when you call them up, regulations require that call centre representatives refer you to qualified mortgage brokers.
3. Hiring a mortgage broker protects you
You may not know it, but the moment you hired a mortgage broker and they give you advice, it became their responsibility to take care of your mortgage needs. They are then required to recommend a mortgage that best fits your situation and they must justify why that specific mortgage is the best for you. In the event that you feel the advice is not sensible and helpful, you have the right to complain and compensation may be provided to you.
On the other hand, if you go straight to the lender and you’re not able to afford the mortgage you choose later on, you may not be compensated. Under the Mortgage Market Review, lenders are responsible of ensuring affordability of mortgage which means if you buy directly, you may still have some legal recourse. Even so, hiring one still makes sense since they are able to offer an extra layer of protection for you.
4. A mortgage broker looks out for your interest
As mentioned earlier, a mortgage broker will find the most suitable mortgage for you. They have your interests at heart and are able to provide you with more options than if you go directly to the lender. You get advice that is unbiased advice, and you are empowered to choose from a number of lenders and mortgages.
Is it all about the Mortgage?
A mortgage broker is required to gather your financial details and documents supporting it. You will complete your application with them by your side.
It doesn’t matter if it is your first time to get a mortgage of if you are a repeat buyer. They will also get in touch with the lender and will give you updates on the status of your application. If in case issues and challenges occur during the loan underwriting phase, they can also communicate with the lender to arrange details and overcome obstacles. They will also be responsible in coordinating your closing.
Furthermore, they will also look into any payment insurance, buildings and content insurance, payment protection, and life insurance.
After looking into it thoroughly, they will also provide recommendations to you based on your new mortgage arrangements. This is to make sure that you are protected in the event of death, redundancy, and critical illness, like stroke, heart attack, and cancer.
Where Should I Find a Mortgage Broker?
When finding a mortgage broker, be sure to check their full credentials. They should be able to provide the financial education you need so you can make an informed decision.
1300HomeLoan prides itself with qualified and accredited mortgage brokers in Brisbane, Perth, Sydney, Melbourne, Adelaide, and other locations in Australia. Our mortgage brokers are armed with a vast experience and knowledge about the mortgage and lending industries and how they work and they can use it to help you find the best product for your unique needs. 1300HomeLoan mortgage brokers are professional and experts in this field, making them the most qualified mortgage brokers in Australia to help you through the complicated process of home loan and lending. Use our Mortgage Broker Locator tool to find the best one within your area of residence. It’s very simple and easy to use and you’ll get the results with just few clicks!
Contact 1300HomeLoan at 1300 466 356 (1300 Home Loan) now so we can get started in finding the best solution for your needs. You can also get in touch with us for an obligation free appointment through our website.