10 Questions You Should Ask Your Mortgage Broker
Regardless if it's your first home loan, or an investment property, receiving the assistance offered by a mortgage broker can easily help you to choose the right home loan and can certainly save you a considerable amount of time and allow you to save a lot of hard earned cash. However, it's important to keep in mind that definitely not all mortgage brokers are comparable. Before you decide on a mortgage broker, one needs to make sure that these professionals are really going to help you to satisfy your requirements and get you the right loan. Certainly there are a couple of different ways to guarantee you're choosing the best mortgage broker. Below are a few questions to ask:
1. When did you start your mortgage broker business?
With numerous mortgage brokers in the business, it might make you feel a little more comfortable if you are dealing with someone who is knowledgeable and has been working as a mortgage broker for some years. With experience typically comes better results, therefore choosing somebody who comes with experience will likely get you a broker with a good track record of finding the best loans for customers. It never hurts to ask these professionals precisely how long they have been working as a mortgage broker and the ideal broker will definitely have no issues in disclosing this info to you. In fact, they will be happy to help promote themselves to you if required. An excellent mortgage broker should also have some favorable client reviews, so if they forget to provide them, you should absolutely 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 industry, there are typically regulating organisations that demand a subscription to be associated with them. It's generally important to check a broker's certifications and qualifications before proceeding with their services. In fact, primary lenders require brokers to undertake a minimum Certificate IV in Financial Services qualification as well as to either hold an Australian credit licence or be authorised under a licensed home loans lender or aggregator. Other subscriptions these experts 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 associations are usually on display by the mortgage broker, however if not, simply ask.
3. Do you have access to a range of different mortgage lenders?
With plenty of different lenders to pick from, the mortgage broker you choose should be able to search and offer you a wide range of loans through a variety of Australian lenders. There certainly is no risk in asking how many these professionals have access to and whether they are able to supply you with a full listing. If they are able to do this, you will definitely have the confidence in their affiliates and be fully mindful of the wide selection of lenders in which 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. Identifying the optimal rate is undoubtedly key, but the broker also needs to be in a position to assess your individual needs and subsequently possess the ability to provide you with a number of different options. The mortgage broker ought to likewise be equipped to prove to you precisely how they conduct their research and how they rank the options they provide to you. Even if a home loan is the absolute best rate, it may not be the most ideal one for you.
5. What commissions will you be getting?
Although this query may seem candid and aggressive, you do really need to remember that mortgage brokers acquire a fee or income whenever they complete a sale with a client. Knowing exactly how much they are entitled to whenever they supply a customer with their mortgage options will definitely assist you to understand how these professionals are paid and how their earnings might impact you and the products that are suggested to you. The broker is required to disclose all commissions and payments they are authorized to receive.
6. How much will I be able to borrow?
The moment the broker looks through your individual information and conditions, they should contain a better recommendation of how much you are able to borrow. These professionals are going to look at various elements such as your down payment amount, earnings, assets and your monthly expenses. When these professionals have evaluated your needs as well as your income, they will subsequently be in a position to provide you a better idea of how much you can borrow. This will therefore help you to gain a much better understanding of what type of property you could look for and the finances you have to work with.
7. Are you able to help with any first home buyers grants?
Depending on the state or territory where you reside, there might be first-time home buyers government contributions and benefits that you may be eligible for. It might also rely on the kind of property you are purchasing, such as a brand new home or if you will be residing in the home or not. Being determined by your circumstances, the mortgage broker you choose ought to possess an awareness of exactly what government contributions and benefits you might be entitled to. They should also be in a position to aid you with the paperwork to apply for these kinds of benefits.
8. What is the best loan structure for me?
With so many loans on the local market, with varying frameworks, it may be challenging to understand which is best for you. A good mortgage broker can explain the various structures and why a particular loan will work better for you and your requirements. Be sure to also ask if 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 sure you understand the procedure and what will need done in order to have your loan application in progress and approved. Ensure you understand what paperwork is also demanded of you, such pay slips, identification documents and so on. Your mortgage broker ought to be able to give you a to-do list of all of the items these professionals require in order to help you to receive approval for your loan.
10. How long will everything take?
Your mortgage broker should be in a position to give you an rough estimation to get your pre-approval in order so you can begin looking around for the ideal property. The broker also needs to be equipped to give you a suggestion of the timeline from pre-approval, final approval, the settlement process and right through to the time you get the keys.
To get started on your home loan, and discovering the best mortgage broker, asking the correct questions will help you to get the right loan for your needs.
If you're looking for a mortgage broker, speak to the friendly staff at Go Mortgage. Go Mortgage can assist you find the right loan for your requirements, regardless if 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/