The road to home ownership is a lengthy one. But it is fulfilling and the work you do leading up to it will be well worth your time. Why? Because doing your due diligence and being thoughtful about your decisions ensure that you make the right investment.
Part of making the right investment, a crucial part actually, would be choosing the right mortgage deal. From banking institutions to various lending organisations, you will have a wide variety of options for your loan. Thankfully, these options can be whittled down to a few good ones with the help of your mortgage broker.
Your mortgage broker acts on your behalf in dealing with lenders. He or she will shop around for the best deals or terms, choosing home loans that suit your financial situation and your needs. Your mortgage broker will also walk you through the application and settlement process.
So this professional plays a crucial role in helping you get the home you want. It pays to choose the right one. Here are five easy steps that could help you.
1. Get recommendations from the right people.
Naturally, this means your real estate agent and people you trust who have used a mortgage broker in the past. A recommendation from a property professional means your mortgage broker has attained a good reputation and has the right credentials. Meanwhile, a recommendation from friends or family means your mortgage broker is dedicated to meeting client needs.
2. Find out about your mortgage broker’s credentials.
Your mortgage broker should be accredited by the Mortgage & Finance Association of Australia (MFAA). MFAA brokers follow ethical standards according to government regulation. Your broker should also be qualified with Certificate IV Mortgage Broking.
3. Meet with prospective mortgage brokers and prepare a set of questions.
At some point, you’ll need to arrange an initial meeting with the mortgage brokers on your shortlist. Consider it as a job interview; you’re the “employer”. Some of the questions you should be asking will touch on the mortgage broker’s list of lenders, mortgage options that may work for you, and the commission.
The panel of lenders and recommended mortgage options will gauge the mortgage broker’s knowledge and expertise. Asking your broker about the commission will indicate whether or not the broker is obliged to push for one lender over another. As you know, brokers get paid in commission by lenders. You should also ask if the broker is receiving ongoing commissions and from which lenders.
4. Scrutinise your mortgage broker; he or she should be an educator, not a sales person.
Brokers are usually unbiased, even when they get commissions from the lenders. The trick to knowing which mortgage broker is going to make the most suitable recommendation would be to see if financing options are explained to you, patiently. A mortgage broker who educates, as oppose to “sells”, you on the finer points of mortgages will also put everything in writing, from the variety of loans to the details of commission.
And see if your mortgage broker has a deep understanding of your borrowing requirements and financial capabilities.
5. Take your time.
Finally, don’t rush your decision. If you are unclear about certain terms or the entire process, don’t be afraid to have it explained again. You should also get your solicitor to take a look at the loan contract before signing anything.
If you still have a lot of questions in mind, consider seeking the help of some of the best mortgage brokers in Australia, or should you living across the Liverpool Region, contacting Mortgage Choice Fairfield is highly recommended so you can learn more.