Mortgage Brokers – Should You Use Them?
Believe it or not there are many benefits to using a mortgage broker. In this article only two will be presented.
As mentioned, many (perhaps even you) may feel that with the easy access and amazing source of information provided by the internet it is not a difficult task to source and apply for a suitable loan, however here is something you may not have considered.
Everybody knows the major players in the finance industry. Here in Australia they are commonly referred to as the big four. If you stop and think for a while about other lenders that you may have seen advertised on the television or heard on the radio, you could maybe add another five or so lenders to those you are familiar with. Do you think you could name thirty lenders? Probably not…
The majority of professional mortgage brokers have access to not only the larger players, but around thirty lenders that provide a number of home loan facilities and other financial products. Each of these have different features and options. Thankfully brokers also have access to advanced software that sifts through these products to isolate the home loan that best suits your immediate and future needs.
In many cases these less known, but very competitive lenders only offer their products through the broker network – you cannot walk into a branch, and you cannot apply for the loan on-line. So if you don’t seek the assistance of a mortgage broker you could be missing out on a more competitive and suitable loan.
A second reason is one you may not have considered – or even been aware of, and this is that every lender has a different lending policy. When searching on the internet you may focus on features such as the interest rate, redraw facility, product flexibility and so on. While these things are important, there is a whole lot more to finding you a lender and product that will help you achieve your goal.
Each lender has a servicing calculation that will determine the amount they are comfortable in lending you given your personal circumstances. You would probably assume that if you entered your details into each lenders calculator you would come out with a borrowing capacity that would not differ too much… you would be assuming wrong! The difference between what one lender is willing to allow and what another is comfortable with can amount to tens of thousands – and that can mean the difference between you buying the house of your dreams, and something a little less than dreamy. Of course you should always be diligent in making sure you can afford what the lender is willing to approve – just because they will lend it doesn’t mean you can afford it! Everybody has different circumstances and standards of living, so please keep that in mind.
The above situation is applicable for a run of the mill, permanent employee with a fairly simple scenario, but the point becomes even stronger if you are a casual employee, have a commission pay structure, are self-employed, have a less than stellar credit rating or have some other financial situation that may not be straight forward. Then it is like trying to fit a square peg into a round hole… all the best with that!
This is where your mortgage broker will become your new best friend and hero! They know the lending policy of each institution they are accredited to write with, they are experienced in dealing with the lenders representatives and will know how to rectify your situation or work within the guide lines of different lenders to get you an approval rather than a decline! They know who will lend what to whom and that will save you a whole lot of stress, anxiety, time and money… and they make it seem so simple!
You would be hard pressed to think of a larger financial commitment you will make in your life – other than perhaps marriage and children! So why wouldn’t you seek the assistance of a professional who has the training, experience, knowledge, technology and contacts to ensure you have the very best that is available to you… and in most cases free of charge!
So if that is not enough to convince you that you would be doing yourself a disservice by attempting to source your own finance – well – you are special! Convincing as these two points are, there are still more reasons you should use a mortgage broker. You can look forward to reading these soon…