Whether it’s your first home loan, or an investment property, getting the assistance from a mortgage broker can help you to choose the right home loan and can save you a great deal of time and help you save a lot of money. But, it’s important to note that not all mortgage brokers are the same. Before you decide on a mortgage broker, you need to ensure that they are going to help you to meet your needs and get you the right loan. There are are few different ways you can ensure you’re choosing the right mortgage broker. Here are a few questions to ask:
1. When did you start your mortgage broker business?
With many mortgage brokers in the business, it may make you feel a bit more comfortable if you’re dealing with someone who is experienced and has been working as a mortgage broker for some time. With experience often comes higher success, so choosing someone who has experience will likely find you a broker with a good track record of finding the right loans for clients. It never hurts to ask them how long they have been working as a mortgage broker and the right broker will have no issues in disclosing this information to you. In fact, they will be happy to help sell themselves to you if required. A good mortgage broker will also likely have some positive client testimonials, so if they do not provide them, you can certainly ask them if they have any available to show you.
2. Are you a licensed broker and/or are you a member of any professional mortgage industry body or corporations?
Like any field of work, there are always governing bodies that require a membership to be associated with them. It’s always important to check a broker’s qualifications and credentials before going ahead with their services. In fact, major lenders do require brokers to complete a minimum Certificate IV in Financial Services qualification and to either hold an Australian credit licence or be authorised under a licensed home loans lender or aggregator. Other memberships they should also be a part of is the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). These memberships and associations are usually on display by the mortgage broker, but if in doubt, ask.
3. Do you have access to a range of different mortgage lenders?
With many different lenders to choose from, the mortgage broker you choose should be able to search and offer you a wide range of loans from a variety of Australian lenders. There is no harm in asking how many they have access to and if they can provide you with a full list. If they are able to do so, you will have the confidence in their contacts and be fully aware of the wide selection of lenders that the broker will have to choose from.
4. How do you choose the best lender/loan?
The main job for your broker is to find the best home loan for your personalised needs. Finding the best rate is obviously key, however the broker does also need to be able to assess your personal requirements and then have the ability to present you with a number of different product options. The mortgage broker should also be able to show you how they carry out their research and how they rate the selections they provide to you. Even if a home loan is the best rate, it may not be the best one for you.
5. What commissions will you be getting?
Although this question may seem blunt and forward, you do need to remember that mortgage brokers do receive a fee or income whenever they complete a transaction with a client. Knowing how much they’re entitled to when they provide a client with their mortgage options will certainly help you to understand how they are paid and how their income may affect you and the products that are recommended to you. The broker is obliged to disclose all commissions and payments they are entitled to receive.
6. How much will I be able to borrow?
When the broker goes through your personal details and circumstances, they should have a clearer idea of how much you can borrow. They will look at various aspects such as your deposit amount, income, assets and your monthly outgoings. When they have assessed your needs and your income, they will then be able to give you a better idea of how much you can borrow. This will therefore help you to gain a better understanding of what kind of property you can look for and the budget you have to work with.
7. Are you able to help with any first home buyers grants?
Depending on the state or territory that you live in, there may be first-time home buyers government grants and incentives that you may be eligible for. It may also depend on the type of property you are purchasing, such as a brand new home or if you will be living in the home or not. Depending on your circumstances, the mortgage broker you choose should have an understanding of what government grants and incentives you may be entitled to. They should also be able to help you with the paperwork to apply for such benefits.
8. What is the best loan structure for me?
With so many loans on the market, with varying structures, it can be difficult to know which is best for you. A good mortgage broker can explain the various structures and why a certain loan will work better for you and your needs. Be sure to also ask if the loans they suggest have a redraw facility, an interest offset account and whether you should be paying principal and interest or interest only.
9. Where to from here?
Be sure you know the process and what will need to be done in order to get your loan application underway and approved. Ensure you know what documentation is also required of you, such as pay slips, identification documents and so on. Your mortgage broker should be able to give you a checklist of all of the items they require in order to help you to get approved for your loan.
10. How long will everything take?
Your mortgage broker should be able to give you a rough estimate to get your pre-approval in order so you can start shopping around for the perfect property. The broker should also be able to give you an idea of the timeline from pre-approval, final approval, the settlement process and right through to the time you get the keys.
To get the ball rolling on your home loan , and finding the right mortgage broker, asking the right questions will help you to get the right loan for your needs.
If you’re looking for a mortgage broker, talk to the friendly team at Go Mortgage. Go Mortgage can help you find the right loan for your needs, whether it’s a first home, an investment property or a second home. Contact Go Mortgage today on 1300 855 244 or visit them at http://www.gomc.com.au/