What Is a Mortgage Broker?
Many people think that mortgage brokers are the same thing as a lender, but this is not true. A lender or a bank representative offers mortgage loan programs to you from a single bank or financial institution. This is an individual who works for the financial institution and who represents the bank’s best interests. A local Perth based mortgage broker, on the other hand, as an independent consultant who is tasked with finding the best mortgage terms possible for you. This is an individual who offers local mortgage advice in Perth that is not tainted by a bank’s motivation to sell you a home mortgage. A mortgage broker has knowledge of many loan programs and may be able to easily tell you which financing institution you should work with. If not, he or she can shop the loan around on your behalf to save you time and effort. This is also an individual who will stand by your side throughout the entire loan process so that you enjoy the best overall experience and results from the process.
Why You Need a Mortgage Broker
If you are preparing to apply for a home mortgage, you may be wondering who to turn to for assistance. Some people will go straight to a local bank that they are familiar with. While this works out well for some mortgage applicants, it often does not yield the best loan terms for applicants. This is because the mortgage loan options available through a single financial institution are limited. Having a Perth based mortgage broker may provide you with a better overall mortgage loan experience from start to finish. With a closer look at what a broker is and how this type of professional can help with your home loan process, you will see why now may be the right time to reach out to this type of professional for assistance with your mortgage loan application.
How Much Do Brokers Cost?
Generally, nothing. As you can see, it is better to have a local mortgage broker working in your favor than to head straight to a bank representative for assistance to find a loan. You may be wondering “how much money does the services of a broker cost?”. The fee structure for mortgage brokers is not set in stone, and many offer competitive fees with various fee structures. For example, some charge a small fee upfront as well as a closing fee. Many only request funds for the credit report up-front, and they may charge one-half to two points at closing. A point equals one percent of your loan amount. Some mortgage broker businesses even have a flat fee rather than a percentage fee structure.
What Do Mortgage Brokers Do?
If you’ve never worked with a broker before, you may be wondering what they do and how they actually help get your loan. The initial process begins when you reach out to a reputable professional for mortgage advice. Many people who are new to the home buying, finding a loan or refinancing process want to know what their loan terms and monthly payment may be or how much money they can borrow. A brokers will ask important and detailed questions about your loan request so that you can get the initial answers you need. This is information that you may need to make a decision about whether to move forward with your loan request or not. The mortgage broker will pre-qualify you for the loan, initiate the loan process with the lender and facilitate all aspects of the loan process. This is also an individual who will offer personalized advice and insight throughout the loan process. You never have to worry about not knowing what is going on with your loan when you work with the right mortgage broker in Perth.
How Do I Choose a Mortgage Broker?
There are numerous Perth mortgage brokers who you can hire to assist you with your home mortgage application. You may be wondering how you can find the right professional to help you. Many people find it helpful to request referrals from friends and family members, or it’s also wise to reach out to several mortgage brokers on your own after reading their bios online. Through them, you can learn about the types of loans they specialize in and how many years they have been in the field. You want to choose a mortgage broker in Perth who you get along with well from a personal perspective. The loan process can take several weeks or more to complete in some cases, so you need to like the professional you choose to work with. In addition, compare the fee structure up-front so that you choose a professional with competitive pricing.
The brokering business is a competitive market in Perth, so it’s important to choose one that you get on with personally and that are qualified to finding you the best loan.
How Much Can I Borrow?
When talking to your mortgage broker, it is wise to ask them each how much money you can borrow for your loan request. Jane can tell you exactly how much can borrow. She has years of experience, knowledge, and is helpful and responsive to what is best for you. Most will ask you to complete a loan application and to allow them to review your credit report. Pay attention to the level of detail you receive back from the broker after you have taken these steps, and note who is easy to reach and who is fast to respond. Your maximum home loan amount will be based on your income and expenses as well as the interest rate that you qualify for based on your credit rating. The broker should also ask you about your future plans and a desirable term length before issuing quotes to you.
Applying for a new loan on your home is a serious matter, and you need all of the mortgage advice that you can get. Jane at Effective Mortgage Services can help with that. While you could head straight to a bank to apply for your new mortgage loan, there are true benefits that you can when you apply for a loan through a mortgage broker.