Finding the Right Mortgage
Finding the right mortgage given your requirements, circumstances and budget can be a very time consuming process, as there are a very wide selection of mortgage products on the market, which is great in the variety of choice available, but can consume large amounts of time, while you digest the various offerings. A danger can be that having found the house of your dreams, another bidder purchases it, before you had made the decision on which mortgage to go with. Aside from the amount of time spent in research, you can also spend many hours, filling out dozens of application forms to the potential lenders. You then have to sit down and analyse the deals being offered, often full of very hard to understand, financial jargon, praying that you are getting it right.
The Mortgage Brokers Services
A professional and experienced mortgage broker manages, negotiates and processes mortgage loans for homes and businesses on behalf of his client. Generally, they can be separated into three categories, being a “Tied broker,” who offers loans from a single source, the “multi tied” who offers from a range of lenders and the “whole of market brokers” who have access to all of the mortgage offerings available to mortgage brokers. Generally speaking, the greater the brokers network and experience, the more likely you are to find the perfect deal.
Why Don’t I Just Use My Own Bank?
Many people often think that because they have banked for a number of years that their own bank is a good place to start when looking after a mortgage deal. After all, who better knows your income and ability to pay back loans than the bank you have been using all this time? However, your loyalty over the years is unlikely to see you offered preferential treatment. You will be processed in exactly the same way as any person making an application and are only likely to be offered the products that they themselves carry, thus reducing your options for the best deal.
The Mortgage Broker can Offer Deals from Everywhere
Just because you are talking to a Sydney mortgage broker doesn’t mean that the mortgage company offering you a loan is from Sydney, or even in NSW. A broker has lenders nationwide, giving you access to companies you probably wouldn’t have found if you were doing it alone, which may end up saving you thousands of dollars. The broker should represent your interests, as opposed to those of the lending institution, and those experienced and knowledgeable can be a good consultant and solver of problems.
While the mortgage broker is obviously going to charge you a fee for his services, his ability to find different interest rates, repayment periods, and often innovative mortgage strategies, can make the difference in being able to get a great deal. As with all things financial, it does pay to shop around to compare what is being offered. Using a broker is a good idea for first time buyers especially, as they will know who is most likely to approve you, which is helpful, as repeated rejections can harm your credit rating.