10 Questions You Should Ask Your Mortgage Broker
Whether it's your very first home loan, or an investment property, receiving the support from a mortgage broker can help you to choose the best home loan and can certainly save you a great deal of time and help you save a lot of money. But, it's essential to keep in mind that not all of the mortgage brokers are same. Before you decide on a mortgage broker, you need to make sure that they are really going to help you to satisfy your requirements and get you the ideal loan. There are few varied ways that can guarantee you're picking the right mortgage broker. Below are a few questions to consider:
1. When did you start your mortgage broker business?
Along 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 operating as a mortgage broker for some time. With experience typically comes better results, so picking someone who comes with experience will potentially get you a broker with a reliable track record of finding the right loans for customers. It certainly never hurts to ask them how long these professionals have been working as a mortgage broker and the right broker will have zero problems in disclosing this information to you. In fact, they will be happy to promote themselves to you if needed. A good mortgage broker should also likely have some favorable client testimonials, so if they don’t supply them, you can certainly ask them if they have any available to present you.
2. Are you a licensed broker and/or are you a member of any professional mortgage industry body or corporations?
Similar to any field of work, there are always governing organisations that demand a membership to be affiliated with them. It's generally important to inspect a broker's certifications and qualifications before going ahead with their services. In fact, primary lenders need 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 likewise be a part of is the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). These subscriptions and memberships are typically on display by the mortgage broker, but if in doubt, simply ask.
3. Do you have access to a range of different mortgage lenders?
With plenty of various lenders to pick from, the mortgage broker you choose should be in a position to explore and offer you with a vast array of loans through a variety of Australian lenders. There certainly is no risk in asking exactly how many these professionals have access to and whether they are able to provide you with a full listing. If they are able to do so, you will definitely have the confidence in their contacts and be fully aware of the wide variety of lenders that the broker will have to select from.
4. How do you choose the best lender/loan?
The primary job of your broker is to identify the best home loan for your personalised demands. Finding the optimal rate is obviously key, but the broker also needs to be in a position to assess your individual requirements and subsequently have the ability to present you with a number of different product options. The mortgage broker ought to likewise be equipped to prove to you how they conduct their research and how they rate the selections they offer to you. Even still if a home loan is the absolute best premium, it might not be the most ideal one for you.
5. What commissions will you be getting?
Despite the fact that this query may seem candid and aggressive, you need to remember that mortgage brokers do acquire some fees or earnings whenever they perform a transaction with a customer. Understanding exactly how much they're entitled to whenever they provide a customer with their mortgage options will certainly help you to recognize just how these professionals are paid and how their income may affect you and the products which are suggested to you. The broker is required to reveal all compensations and payments they are authorized to receive.
6. How much will I be able to borrow?
The moment the broker goes through your individual information and conditions, they really should have a better recommendation of how much you are able to borrow. These professionals are going to look at different elements such as your deposit amount, income, assets and your monthly outgoings. When these professionals have assessed your needs as well as your earnings, they will subsequently be able to give you a better idea of how much you can borrow. This will therefore help you to acquire a better understanding of exactly what type of property you could look for as well as your budget.
7. Are you able to help with any first home buyers grants?
Pending the state or territory in which you live, there might be first-time home buyers government contributions and incentives which you may be entitled for. It might also depend on the kind of property you are buying, for example if it’s a brand new home or if you will be living in the home or not. Depending your circumstances, the mortgage broker you choose ought to have an understanding of exactly what government grants and benefits you might be eligible for. These professionals should also be in a position to aid you with the documentation to apply for such incentives.
8. What is the best loan structure for me?
With so many different loans on the market, with differing structures, it can be difficult to understand which is ideal for you. A good mortgage broker can discuss the various frameworks and why a certain loan will work better for you and your requirements. Be certain to also ask whether the lendings they recommend have a redraw facility, an interest offset account and even if you should be paying principal and interest or interest only.
9. Where to from here?
Be confident that you know the procedure and exactly what work will be required to be done in order to have your loan application in progress and approved. Make sure you understand what paperwork is additionally demanded of you, for example pay slips, identification documents and so on. Your mortgage broker should be equipped 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 really should be in a position to give you a rough estimation to get your pre-approval in order so you can start shopping around for the ideal property. The broker should also be equipped to give you an idea of the timeline from pre-approval, final approval, the settlement process and all the way through to the time you get the keys.
To get the ball rolling on your home loan, and discovering the best mortgage broker, asking the correct questions will assist you to get the right loan for your needs.
If you're searching for a mortgage broker, talk to the friendly team at Go Mortgage. Go Mortgage can help you find the right loan for your requirements, whether it's a first home, an investment property or a second home. Get in touch with Go Mortgage today on 1300 855 244 or visit them at http://www.gomc.com.au
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