When taking out a home loan, you can save a lot of time and energy by employing the services of a skilled mortgage broker. They can make the process faster and more convenient for you because they can handle the application process on your behalf. In addition, a mortgage broker can advise you on the requirements of each lender, which could improve your application’s chances of being approved.
In saying that though, it is always wise to qualify the mortgage broker you wish to use as well. You have to ensure that they are going to be able to help you access the best loan available and put your interests first before anything else. With that in mind, here are 4 of the most important questions you have to ask your mortgage broker:
1. What their experience and qualifications are. Naturally, you want someone who has the necessary experience, skills, and qualifications to get the job done. It’s important, for example, that they are a member of either the Mortgage Finance Association of Australia (MFAA), or the Finance Brokers Association of Australia (FBAA). It means that they adhere to certain standards when it comes to performing their duties as a mortgage broker.
Experience is important too, because it usually means that they have already built up a network of lenders that can provide you with more home loan options to choose from. This could translate to getting more value out of the loan you’re taking out. At Launch Finance, for example, our brokers have a wide range of backgrounds and experience including in the banking and broader finance areas, which allows them to bring that extra level of understanding and strategy towards getting you the best home loan on the market.
2. How much the loan would cost you. If you have your eye on a specific loan product, your mortgage broker can help you determine how much the loan would actually cost you. The reason is that the cost goes beyond just the principal and interest payments. You also have to factor in fees and charges that you may have to pay upfront, throughout the term of the loan, or when certain conditions are met.
There is always the opportunity to revisit what may be already a good rate with your bank for further discounted rates and save money. There are current specials on with different lenders at the moment and a good broker will know where they are and also just how to get the best deal from your existing bank.
3. Which lenders are in their network. The rule of thumb is that the more lenders a mortgage broker has in their network, the better. Brokers will often have direct access to the major banks and can push them hard for the most competitive rates, however looking outside the ‘big four’ banks can often save you money. A good mortgage broker will have access to other non-major lenders as well who will often have better rates and charges, which they can pass directly onto you.
4. How they decide which loan is best suited for you. Majority of mortgage brokers don’t charge you for their services however it is important to ask how they will shortlist the best loans for you. You want to ensure that the broker is looking after your best interests when setting you up with the best loan.
At Launch Finance, our brokers will access their wide range of lenders to find you the best loan on the market for your specific requirements and financial goals.
In summary, it’s important that you sit down with a mortgage broker first, and ask them these important questions in order to determine whether or not they are the right fit for you. Contact Launch Finance today to make an appointment with one of our trusted brokers and see how we can save you money, time and stress in the loan application process.
Written by Dean English.