Advantages Of Using a Mortgage Broker
Why Use A Mortgage Expert For Your Loan Requirements?
What is a mortgage broker?
A mortgage broker is a “go between” person (intermediary) between the lender and the borrower who negotiate loan on behalf of the borrower. This intermediary usually gathers all necessary paperwork from the borrower and presents them to the lender for underwriting and approval. Once the mortgage funds has been approved by the financial institution, the fund will be credited to mortgage borrower’s account and the broker will earn a commission as agreed. This means that a broker is an intermediary working with the lender and the borrower to ensure that the lender actually get the amount that he/she is looking for. To ensure that the lender becomes successful, the broker usually gathers assets information, employment documentation, borrower’s income, credit report as well as any other important information that will increase the chances the borrower to secure the financing. By going through all important information presented by the borrower, they will determine the ideal loan type, the appropriate amount as well as loan to value ratio to present to the lender for approval. After successful submission of all essential documents to the lender, the intermediary will be in touch with the lender and will be giving the borrower up to date information on progress gained.
What services are offered by mortgage brokers?
1. Business loan
If you own a business and you planning to expand it, a mortgage expert will help you to secure a business loan. A business loan is similar to personal loan but the difference is that this type of loan is exclusively designed for business use. An intermediary will carefully analyze the current financial position of the business to determine the amount of loan to be borrowed.
2. Mortgage loans
Are you planning to venture into real estate investment but you don’t have money to make your dream a reality? If yes then a mortgage loan will help you realize your dream. However many people are usually unsuccessful when they apply for this loan because they don’t comply with the lenders requirements. An independent mortgage professional will ensure that you have complied with all necessary requirements set by the lender as well as negotiate with the lender to ensure that you get the best deal.
3. Investment loans
There are many types of investment loans and borrowers are usually confused on which type to choose. The intermediary will not only present all necessary documents to the lender but will also help you choose an investment loan that will best suit your investment needs.
4. Home loans
A home loan is a loan advanced given to the borrower to help him/her buy a house condominium. It also refers to using the value of your home to raise finance for something else like consolidating debts or buying a car. A mortgage broker will advise you as well as negotiate with the lender on your behalf.
Does a mortgage broker need a license in Queensland or Australia?
The short answer is yes. All mortgage expert must be licensed in order to render their services to clients in Australia. All major lenders usually require intermediary’s to either hold an Australian credit license (ACL) or to be authorized under a licencee (the groups they work with). In addition to that, most lenders usually require the intermediary to have completed certificate IV in financial services as well as be a member of mortgage industry body such as Mortgage and Finance Association of Australia (MFAA) or Finance Broker Association of Australia (MFAA). The National Consumer Credit protection Act that was passed in July 2010 requires that mortgage and finance brokers to either hold an Australian credit license or act under a license as a credit representative.
Why use a mortgage broker?
> They help you shop around
One main benefit is that they help you should around in order to find a lender who offers the best deal. They have up to date information regarding lenders and what they offer to borrower. As a result, the “go-between” will search the range of loans that lender offers and help you find the right lender who will cater for your specific loan needs.
> Help you save some fee
There are many different types of fees that are usually involved when taking a mortgage loan. Most lender usually take advantage of new customers to add fee such as application fee, origination fees as well as appraisal fee. However, when you work with a mortgage specialist, they will negotiate with the lender to waive all fee involved, a factor that will help you save a lot of money.
> Take you through the process
Many borrowers don’t get loans that they want not because they have not qualified but because they don’t know how to go about with the loan application process. They will present all necessary documents to the lender on your behalf and will ensure that you have meet all requirement that have been put in place by the lender. This will increase your chances of getting the amount that you have applied.
The Top Five tips when choosing a mortgage broker
1. Licensed
When choosing for a mortgage specialist in Australia, the first very important factor that you need to consider is if the broker is licensed. As said before, only licensed brokers are allowed to operate in Australia. However, some “go-between’s” may not have genuine licenses. To ensure that you are hiring the right person, confirm with the relevant authority to know if the broker’s license is genuine.
2. Experience
The mortgage industry is very competitive in Australia. As a result only the best intermediary professionals survive. This means that if you choose a broker who has many years of experience in this industry, you will definitely increase your chances of getting quality services.
3. Reputation
What other clients have used their services? If you want to be on the safe side, ensure that you only choose a third party who enjoys good reputation from present and past clients.
4. Quality customer service
A good mortgage broker is one who is dedicated to offer quality services to clients. Conduct your own research to know if their broker is committed to offer quality services. The best way to know this is by looking at his/her past projects.
5. Availability
A financial adviser should always be available when you need his/her services. Don’t choose an adviser who is so busy to even answer your calls or reply your text when you need their services.
In conclusion, mortgage specialists play a very important role in helping borrowers to secure loan of their choice. Buy hiring their services you will not only get the best lender but the process will also be stress free. If you are searching for quality service at an affordable fee, contact our friendly team today and we will be glad to help you.
For more information feel free to contact our team direct. We are happy to answer any questions.
