When Should I Use a Mortgage Broker?
Using a mortgage broker is becoming more popular for Australian borrowers. However, using a mortgage broker may not always be beneficial. Here are some tips to help you decide if you should use a mortgage broker.
If you have strong credit and are very conservative
A Broker can find you much lower rates & fees
You’re time pressured & busy
A Broker can do all the work for you free of charge
You’re Considered a High-Risk Borrower
If you are self-employed, have a poor credit history, or are a non-resident, applying directly with a bank may not be the best option. This is because banks may consider you a high-risk borrower, which could lead your home loan application to be denied. Instead, working with a mortgage broker could help improve your chances of being approved for a loan. Mortgage brokers are specialists in negotiating and lending policies. As a result, they can help you improve your loan application, get a clear picture of your financial situation, and help find lenders willing to approve you for one of their loans.
You’re a First-Time Home Buyer
The home loan approval process is complicated, especially for first-time homebuyers. Working with a mortgage broker can help relieve some of the stress and make the process easier. Mortgage brokers will:
- Help you fill out your application, make sure your application is filled out correctly, make sure your required documents are up-to-date and will guide you through the entire process.
- Liaise with all the people involved with the home buying process, including solicitors, real estate agents, valuators, and your lender
- Be your one point of contact during the process. They will schedule everything from the valuation to the settlement date so you can stress less.