Disclaimer: This information is general in nature and has not taken into account your personal financial position or objectives. Before proceeding please refer to a licensed adviser or tax agent and relevant PDS for product details before proceeding.
Finding a Mortgage Broker – Introduction
There are many ways of acquiring a home in Australia. It is important to note that having a home in Australia is the best idea because it is such a nice place to live both for locals and foreigners. It is usually not easy to find a house in Australia and therefore, there is a high need to find someone to help you in the process. This applies especially when you are not a local member of Australia. There are various types of mortgage in Australia which have certain interest rates and there are various processes you can use to acquire them. You can choose to use the bank to get a mortgage or get help from a broker. For most foreigners, they usually don’t have enough information about the type of property found in Australia and therefore, it is important to approach a broker who is experienced enough to be able to offer good advice on how to purchase a particular property. The advantage of using a broker is that he will help you to get the best deals because he is well connected to various lenders and he has a lot of information on various offers available and also the policies. Therefore in this article, we shall look at how you can choose a broker.
Finding a Mortgage Broker – How
It is usually challenging to borrow for the first time. At this time you don’t have a lot of information on the advantages and disadvantages of borrowing to acquire a home. It has been shown that it is better to acquire a home through a broker rather than going directly to a bank or a lender. Before you choose a broker it is important to ensure that the broker is connected to many lenders, has relevant knowledge and is certified to carry out his work.
There are various steps you will have to follow to choose the right broker:
Finding a mortgage broker
Finding a broker involves some important steps outlined below
1. Asking for recommendations from friends
You can use a variety of people to help you find a qualified broker. This might be your friends, colleagues and other agents. These people will provide you with relevant information on how to get a broker to help out. In this stage, it is very crucial to ensure that you get as many people as possible so that you will get a lot of information to help you in making decisions. Therefore, it will be very important to ensure you get your friends in various meetings such as lunch and inquire about some of the best brokers.
2. Researching online
You can utilize the internet to find some of the brokers who have the best reviews or have experience with a good reputation. You can also check their records or whether they are registered to be able to determine the best.
3. Ignoring unverified advertisements
It is very important to understand that some advertisements can be misleading and therefore you need to be aware to avoid getting into the wrong trap. It is very important to understand that this market keeps on changing and therefore, you should always be aware of misleading rates.
After identification of a number of brokers, you should be able to interview them in the following ways:
1. Scheduling interviews with various brokers
After finding out some of the recommended brokers, you will be required to plan for interviews with various brokers. You should have a set list of the things you want to know so that it will help you to gather the right information. In this way, you will be able to compare various brokers.
2. Inquire about the process of application
Brokers nowadays provide for an online application of loans and therefore, you will be required to ask about the requirements, deadline and the process of application. Also, remember to inquire about all the documents you will need.
3. Inquiring about the interest rates and points
The role of brokers is to provide a connection between the lenders and people looking out to own homes. They, in turn, earn points or fee. Therefore, you should ensure that you get the right broker to get the best rates and also ensure you get information about fees. Therefore, in this case, it is important to ensure you choose the lender who gives you the most options to choose from.
4. Find brokers who will ask you many questions
If a broker will take more time to know a lot about your financial information, the more likely he will let you get the best deals with low rates. Therefore, it important to get a broker who asks a lot of information about you. Such brokers usually ask about your income, your credit scores, and even your social life.
5. Ask about credit scores
You should provide the broker with your credit score information fully in order to get the best deal from him.
Making a decision on the right broker
Decide on a broker you can be able to place your trust on. your broker will help you reach your lender and therefore he will be playing a very important role to ensure you get the best deal in acquiring your house. Therefore, you should ensure that you choose the lender who is the most trustworthy. You will do this by getting the one who provided the most important information to you in a generous manner.
Compare information regarding what most brokers gave you and this will help you to make a decision
Make a final decision on who is the best broker who suits you most-This will be done after gathering all information stated above.