Do you want to buy a house but are short on budget? Fret not; you can get a mortgage from a credible lender to facilitate the purchase. In return, you will use the asset as collateral as you pay the loan in agreed installments. However, you will need a broker for a successful mortgage loan application.
A mortgage broker acts as the link between you and the lender. The broker knows which mortgage you will be able to access and has an idea of lenders who will reject your application. But, to successfully get one, there are things to follow. This article gives you the tips to use when choosing a suitable broker.
1. Evaluate the broker
It would be best to research brokers from your locality and evaluate them when choosing a broker. A credible broker is registered and highly qualified to help you with the process. For example, intermediaries like Mortgage Broker Melbourne will have a Certificate IV in Finance and Mortgage Broking (FNS40815).
This certificate allows the broker to bridge you and the lender legally. Besides the certificate, it would help if the broker holds a Diploma in Mortgage Management of related academic qualifications.
2. Check the broker’s access to different lenders
When shopping for brokers, you will come across many. These types of brokers have access to different lenders and mortgages. It would be best to go for those with access to different mortgages when choosing these brokers, and it will save you some money and enable you to access other features like redraw facilities.
2. Find out about the broker’s experience
Besides certification and academic qualifications, a good broker should have enough experience. Since you will entrust this professional with your hard-earned money and future as a homeowner, it would help if you did some background checks to determine past performances.
You can find this information from references or on the broker’s website. It would be best also to check the reviews of past client’s to find out if they were satisfied with the services offered by the broker.
3. Pay attention to the broker’s questions
Meeting the broker during the selection stage is also essential. While at it, the questions that the broker will ask you can determine if you will get the best service. For example, the broker ought to ask about your current financial situation and the chances of soon changing.
The broker will understand your situation and hence the best home loan by asking such a question. Failure to ask these questions will leave you stuck in an unfavourable mortgage that the lender can decline.
4. Discuss the fees and other costs
Buying a home entails a lot of documents and fees you will have to pay. When you involve an agent like Mortgage Broker Melbourne, they will lay the fees involved bare to avoid the additional costs that might arise later on. Some of these fees include but are not limited to building insurance, stamp duty, lender fees, and legal fees.
Purchasing your own home is arguably one of the best feelings: however, it all comes down to your mortgage broker. If you fail in finding a good broker, you will live to curse the deal you enter with the lender. If you want to talk about such misfortune, use the tips in this guide when applying for a mortgage.
Also read: What is a 1031 Exchange in Real Estate: Rules & Process