The home loan market is highly competitive. There are many lenders out there offering compelling loan products and different types of loans. Given the competitive nature of the market, finding the right loan can be extremely time-consuming. For instance, a borrower might find it hard to determine which kind of loan is better for them – whether they should get a fixed rate loan or a split-interest loan or variable rate loan. They might also find it tough to determine whether they should pay back interest only or both; the principal amount and interest.
These questions can be answered by a mortgage broker to help a borrower narrow down their options and determine the mortgage that is right for them. This reduces the time spent in completing the research work and choosing the loan.
Mortgage brokers have a strong network with many lenders and they have access to several home loans; therefore, they can help a borrower find the most cost-effective loan. The mortgage lenders won’t just point you towards the loan with the lowest interest rate; they will calculate the loan’s actual cost after taking loan fees, charges and other expenditures into account.
A mortgage broker will let a borrower know whether they will have to pay more if they paid off the loan early, whether they’ll need to pay upfront costs like establishment fees and keep them informed about any changes during the loan process. If the borrower needs to pay the LMI (Lenders Mortgage Insurance) they will consider this cost too while calculating the total loan charges. Few mortgage brokers have special deals with mortgage lenders that allow a borrower to save a lot of money on the loan.
The home loan process can be quite intimidating for first-time borrowers. From seeking a pre-approval on the home loan to making arrangements for settlements, there are a lot of things that a borrower must be aware of to complete the loan process. A mortgage broker can guide a borrower through the home loan process to make the process easier for them and reduce their stress.
A mortgage broker can also increase the borrower’s chances of getting a home loan. For example, if the borrower doesn’t have a 20 per cent deposit and are worried about the loan they can afford, a mortgage broker can guide the borrower in the right direction by informing them about lenders that have more lenient loan requirements than other lenders. If a borrower wants to refinance their existing home or is moving onto their next home, a mortgage broker can ensure that the process of mortgage change is as quick and smooth as possible.
A mortgage broker usually doesn’t cost the borrower anything. They are given a commission by the lender who the borrower chooses to work with. However, a borrower should always determine how a mortgage broker is paid before engaging with them so that they know what they are in for.
A mortgage broker can navigate the borrower through any difficult situation, handle the process and address any problem in the home loan process. For example, if a borrower has credit issues, is self-employed or doesn’t fit into the profile of an ideal due to any other reason, a mortgage broker can find them competitive loans that they’re more likely to qualify for. Many flexible lenders exist in the Australian market. A mortgage broker can connect a borrower with these lenders who are willing to offer a home loan to borrowers who don’t fit the profile of an ideal borrower.
Mortgage brokers work for the borrower and don’t get paid unless the loan is closed. Therefore, they are more accessible to borrowers than bank employees. When a borrower has questions about the loan processor wants to know about the best loan products, they can easily get all the answers from a mortgage broker.
One thing a borrower should know is that every time they apply for a loan and the mortgage lender turns down their loan application, it puts a mark on their credit history. Mortgage brokers have specialized software that they use to access loan information across several lenders and match that against the individual situation of the borrower.
It provides a clear indication of how much the borrower can afford to borrow and which mortgage lenders will be willing to lend the money to the borrower. This helps a borrower identify the lenders that will accept their application and reduces the chances of a borrower’s loan application being turned down.
A borrower’s mortgage broker will complete all the legwork in looking for the right loan for the individual needs of the borrower and support them throughout the loan application process and settlement. This includes completing the paperwork, getting pre-approval, helping a borrower apply for incentives that they are eligible for and keeping them informed about their loan application’s progress.
Mortgage brokers generally make appointments at the place and time that is convenient for their clients, including on weekends and after work hours. This is a major benefit for borrowers that have family or work commitments and can’t contact mortgage brokers during weekdays or work hours.
If you are looking for a mortgage broker that can offer all these perks to you, then you are at right place. At Josh Financial Services, we can take your stress and pain away by acting as your guide through the home loan process.