What To Look For When Selecting A Mortgage Broker

What To Look For When Selecting A Mortgage Broker

If you are considering taking out a home loan or reviewing your current requirements, you might want to consider a reputable mortgage broker only. A broker can save you valuable time, offer you expert advice and more often than not, their sets are at no cost to you!

A good licensed mortgage broker will do the following:-

  • clarify home and investment loan options that best suit your needs
  • act as your advocate in negotiations with lenders to obtain the best deal; and
  • position all paperwork and supporting information necessary to obtain the finance
  • guide you in the right direction for complimentary sets required for a total financial solution

In an ecosystem such as the present where you are literally overwhelmed by choice, the role of a mortgage broker is to wade by the good and bad deals out there and ultimately arrive at a solution that best meets your current and future individual needs. At no cost to you and as brokers receive their remuneration via the edges; why not take advantage of this free service. Be aware that some brokers may charge a small fee for their service; this is not necessarily a bad thing as they are clearly confident enough to do this and believe they can offer more than other brokers out there may not necessarily be able to offer. Not always the case though.

There are many things to look for when choosing a mortgage broker and it is very important as this will ensure the right loan for you now and in the future. It will also ensure the whole course of action of securing a home to live in, refinancing to a lower interest rate, gearing into shares with your equity etc. etc. is done with the least amount of hassle as possible and that you are able to most suitably align yourself with the required ancillary professionals to fulfil not only the loan requirements but the whole financial solution.

Finding a good mortgage broker is something you should never rush and there are several meaningful factors you should look for:-

A. A proven track record – in today’s tricky market you want a broker that has been around a fair while with some good experience. If you have a close friend, colleague or someone in a similar line or related work like a lawyer, accountant or business broker who recommends you a loan specialist then you are one step above many others and this increases the advantage of a successful experience for you

B. Establishes good rapport and is flexible – this is important as each individual has specific scenarios that might require additional attention. Good first impressions can be built or destroyed within the first minute of meeting someone. As a mortgage is a very personal course of action and sometimes can be a lengthy course of action, having somebody you get a good feeling about is a great start especially as this relationship may be one that lasts many years

C. Associations with specialized bodies – the more specialized bodies a mortgage broker is affiliated with then the more likely they would be complying with the stringent compliance course of action. specialized bodies may include MIAA, MFAA, FOS, COS to name a few. While on this point it is a good idea to ask for their education qualifications and to check their broker and license numbers. These can then be double checked with one or all of the above mentioned bodies for any further information

D. Referral relationships – a good broker will have reference points or referrals from strong relationships built over time for any other sets you may require. If there does not seem to be close relationships with third parties then that can often be a warning sign

E. Do they deal with a large number of lenders – if a broker only deals with 1 or 2 lenders you may miss out on the best possible option for you personally. Often this can show laziness on the broker’s behalf and a without of understanding of the complete market place

F. How does the broker find the best solution – a good broker will have a standard methodology and not just scribble some notes out on a pad but give you a computerised summary of your situation and options in preferably a PDF format. Make sure you are aware of the actual cost of the loan and always a good idea to compare this with what a bank could offer or already another loan consultant. Also given the new strict compliance rules and regulations, make sure your broker presents you with the disclosures credit guide and customer privacy statement, does a complete client needs examination and then presents you with a preliminary assessment for you to sign and also a credit proposal disclosure document. This is very important as failure to do this is not complying with industry regulation.

These are some handy tips to help you choose a reputable mortgage broker. Above all ask plenty of questions; do your research and make you feel comfortable with the person in front of you intimately going by your personal circumstances.

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