Before considering the potential positives and negatives of welcoming a mortgage broker into your life, it’s good to understand what exactly it is that a mortgage broker does.
Put simply, their job is to research available lenders and narrow down some options that suit your circumstances – showcasing the different deals on offer to help you make up your mind without the stress of shopping around yourself.
But they are not magic. For them to do their job properly, potential borrowers must give them accurate and honest information, in just the same way you would give the lending specialist at your bank your own financial details.
By enabling them to get the process started with the relevant data at their fingertips, they can work quickly to present different available mortgage options for you to choose from.
Some things a mortgage broker can do for you to help you access a mortgage include:
- Identifying information to enable access to your credit report
- Examining pay slips and previous tax returns to verify your annual income
- Contacting your employer or accountant to confirm your employment situation
- Examining financial statements to support your claims
Without the right information, a mortgage broker cannot secure you a loan.
How a Mortgage Broker Can Help You
Shopping around for a mortgage can be time-consuming and stressful but when you’re too busy to make appointments and research with individual lenders, working with a mortgage broker helps you have access to a wealth of mortgage-related information at your fingertips.
To save you even more time, working with a mortgage broker can be a positive way to fast-track your mortgage application process and potential approval.
Should You Do Business With a Mortgage Broker?
Utilising the knowledge and experience of a professional mortgage broker has many benefits, including:
- They are experienced professionals
Professional, experienced mortgage brokers experts in their industry.
They must adhere to strict guidelines and understand all the potential issues you may face – and can offer you some practical solutions to help match a suitable loan to your circumstances.
- They have access to a broad network of lenders
Everyone’s financial circumstances are personal and if your own situation may not tick all the standard boxes, it’s possible a mortgage broker can get you access to a mortgage with a lender you may not have known about. Being able to find the right loan product for your unique needs is an important part of the work mortgage brokers do.
Because they have access to a huge network of lenders – and existing professional relationships with the key people involved in loan applications – they can direct you to the best possible loan product easily and effectively.
- They look after the entire mortgage process – from application to settlement.
Provided you give them access to the necessary paperwork, they can fast-track your mortgage application and respond to any questions you may have along the way.
With clear and consistent communication, you understand what is happening with your loan application at every step of the way.
Potential drawbacks
- Only believe it when it is in black-and-white
Beware of estimated provided by your mortgage broker that they have been given by the lender. Estimates are not legally binding and it is important to fully understand the actual mortgage terms before signing.
- You may qualify for an even better deal with your existing financial institution
If you already have a lengthy and positive relationship with solid relationship with a financial institution, you may be able to get a great deal directly from a loan officer at the bank. It’s good to check. With so many deals from a variety of lenders, mortgage brokers have the ability to shop around but being aware of a loyalty offers from your own bank makes sense.
- Some banks don’t work with mortgage brokers
Mortgage brokers are great at shopping around for the best offers but the reality is that some major banks prefer not to do business with external brokers.
How to Find a Mortgage Broker
When you choose any service provider to work with, doing some due diligence is always recommended. Here are some ways you can choose the best broker to work with:
- Ask for referrals from relatives, friends, or your real estate agent
- Check their credentials and professional affiliations
- Explore online client reviews
- Confirm their fees and commissions
To weigh up the positive benefits of working with a mortgage broker, talk to our loan experts at Lending Specialists today.
