The number of people using mortgage brokers for their home loans is on the rise – but many people still don’t understand exactly what a mortgage broker does and how they can help you.
To help you understand how a mortgage broker can help you, check out these insights to help you make the most of this special connection:
Meeting Your Mortgage Broker
Connecting with a mortgage broker is a helpful step towards achieving your property investment or home ownership goals – but what should you expect from the meeting?
The bonus of working with a mortgage broker is flexibility – although many do have offices to offer you a convenient place to meet, others are very flexible in being able to connect with you in your own home or workplace. It’s up to you and your mortgage broker to arrange the meeting time and place to suit your schedule.
Identification For Your Home Loan
Presenting with 100 points of identification is standard – this could include your passport, Medicare card, drivers’ license or a state/territory proof of age. Additional info may include your last two payslips, last group certificate, your last two years of tax returns, and your bank account and credit card statements.
Talk to your mortgage broker about the specific identification they need you to bring – whether you are working as an employee, or run your own business will have an impact on the information you need to supply.
Calculating Your Borrowing Capacity
Working out what you can afford to borrow is a critical part of your loan application. All your financial and bank statements will be an important part of calculating this figure to ensure you apply for the finance that suits your circumstances. Also, by using your base wage (rather than including irregular commissions or bonuses in calculations), should ensure you can afford your commitments year round.
Choosing the lender
A large part of what a mortgage broker does for you is to help you identify the many options available to suit your circumstances. Depending in the industry you work within and your credit history, you may be ideal for specific lenders and may benefit from a better interest rate offer. By being honest and open with your broker from the first meeting, you will help streamline the process of finding the best possible lender for you.
What Does A Mortgage Broker Do?
A finance broker negotiates with financial institutions and lenders on your behalf – to help you access the finance that suits your needs and capabilities.
They help you choose the most appropriate loan and can help you manage it – right through to settlement.
Things To Check With Your Mortgage Broker
Always check that your broker is licensed.
Searching ASIC Connect’s Professional Registers can show you if they are currently licensed. You can also phone the ASIC Infoline on 1300 300 630.
Remember – A professional mortgage broker should save you time and money, but it’s important to do your own research to ensure they are the right fit for you.
If you need advice for a home loan, business or commercial loan, self-managed super fund loan, or a vehicle or equipment finance loan, speak to a broker at Lending Specialists. We have a wealth of experience under our belt and a robust network to connect you to the right industry professional for the loan you need.