When you are looking to take out a home loan or check the current criteria, you may just want to find a reliable mortgage broker. A broker will save you precious time, give professional advice and their services are at no cost to you more often than not! Mortgage Broker-Spear Mortgage has some nice tips on this.
A professional mortgage broker with a licence can do the following:-
Identify the options for home and investment loans which best match your needs
Act as your representative in lenders negotiations to secure the best deal; and
Arrange all the paperwork and support information required to obtain the financing
Direct you in the right direction when it comes to complementary programs for a complete financial solution
In an environment like the present in which you are practically overwhelmed by options, a mortgage broker ‘s job is to wade through the good and bad deals out there and eventually arrive at a solution that best suits your current and future individual needs. You earn their remuneration through the banks at no expense, and as brokers; why not take advantage of this free service. Be aware that some brokers may charge a small fee for their service; this is not necessarily a bad thing as they are obviously confident enough to do this, and believe that they may not necessarily be able to offer more than other brokers out there. And not always the case.
When choosing a mortgage broker, there are many things to look for and it’s very important as this will ensure the right loan for you now and in the future! It will also ensure that the entire process of securing a home to live in, refinancing at a lower interest rate, moving into shares with your equity etc. etc. is done with the least amount of trouble as possible and that you will be able to align yourself most appropriately with the necessary ancillary professionals to meet not only the loan requirements but the entire financial solution.
Finding a successful mortgage broker is something you can never hurry to and you should look for several main factors:-
- A proven track record-You want a broker with some good experience in today’s tricky business that has been around for a reasonable while. If you have a close friend, colleague or someone like a lawyer, accountant or business broker who recommends a loan specialist, you are one step above many others and that increases the benefit of a successful experience for you.
- Establishes good relationships and is flexible-this is important since each individual has specific scenarios that may require further attention. You can create or kill positive first impressions within the first minute of meeting someone. Since a mortgage is a very personal process and can often be a long process, finding someone you feel good about is a great start, particularly because this relationship can last for several years.
- Associations with reputable bodies-the more qualified a mortgage broker is associated with, the more likely they are to comply with the strict requirements of enforcement. The professional bodies can include, to name a few, MIAA, MFAA, FOS, COS. Although asking for their education credentials and checking their broker and license numbers is a good idea on this stage. This can then be tested double with one or more of the above bodies for further details
- Referral relationships-for any other services you will need, a good broker will have reference points or references from strong relationships built up over time. When close relationships with third parties do not seem to occur then this can often be a warning sign
- Will they deal with a large number of lenders-if a broker deals only with 1 or 2 lenders, you personally can miss out on the best option possible. This can often expose laziness on behalf of the broker and a lack of understanding of the full market place
- How does the broker find the best solution-a good broker will have a standard methodology and will not only write down some notes on a pad, but will give you a computerized summary of your situation and options in preferably a PDF. Make sure you are aware of the loan’s actual cost, and always have a good idea to compare it with what a bank or even another loan consultant could offer. Also, given the new strict compliance rules and regulations, make sure that your broker provides you with the Credit Guide and Customer Privacy Statement disclosures, performs a full customer needs analysis and then presents a preliminary assessment for you to sign and a credit proposal disclosure document as well. This is very important because failure to do so does not comply with regulations in the industry.