Mortgage Broker – Role, Different Services Offered, Tips and Advantages

Thursday, September 6, 2018, 6:00 AM | Leave Comment

Investing in property along with being one of the most vital decisions is also the most stressful and complicated times that you may face.

Here, hiring the services of a mortgage broker will be a wise choice as they will make your property buying process easier. They will guide you in every step of the way and help you get the best deal.

No matter whether you are buying a property for the first time, buying to let or are re-mortgaging; it is a mortgage broker that will leave no stone unturned in making the whole process simpler.

The Role of a Mortgage Broker

A mortgage broker possesses specialist knowledge when it comes to the lending market. He will guide prospective buyers looking for a mortgage to buy a property amid the long list of deals, incentives and interest rates available. A professional mortgage broker not only provides financial advice but also suggest the buyer with the ideal mortgage.

All Mortgage Brokers are Not the Same

If you think that all mortgage brokers are the same, then you are wrong. Generally, mortgage brokers are of three types namely,

  • Some mortgage brokers are associated to a single lender or specific lenders which indicate they will suggest only these particular mortgages. Such brokers will charge a commission instead of an upfront fee.

  • There is another category of mortgage broker that suggest lenders from a selection or panel that represents a small section of the whole market. Still, they can claim of being brokers of the entire market as far as the panel or selection on offer acts as the representative of every lender.

  • Last but not the least are the independent brokers that do not have any link with any lender. An independent broker can suggest lenders from the entire market. It indicates that these brokers are in a better position to offer advice that is genuinely impartial through the benefit of a tied broker is at times.

    Despite having a limited variety of goods to offer, these brokers can provide excellent deals on them. A mortgage broker from the entire market will charge an upfront flat fee.

Service Portfolio

Below is a list of the different services that you can expect from a good mortgage broker. Take a look,

  • Debt consolidation

  • Renewals and refinancing of existing mortgages

  • Mortgages for a first-time home buyer

  • Pre-approvals and rate guarantees

  • Second mortgages

  • Investment property mortgages

  • Vacation property mortgages

  • Self-employed mortgages

  • Professional consultations

  • Mortgages related to the line of credit

  • Cash-back mortgages

Tips to hire a Good Mortgage Broker

Today, mortgage brokers are readily available, but not all are trustworthy or genuine. So, it is always good to consider a few tips before hiring the services of a mortgage broker such as,

  • Word of Mouth– Asking around from friends, family or colleagues will help you choose the best mortgage, broker.

  • Credentials– Before hiring a mortgage broker check his credentials such as his qualifications, certifications, experience and license.

  • Reviews– Read online reviews and customer testimonials as this will give you a fair idea regarding the professionalism and sincerity of the broker and the quality of the services that they offer.

  • Compare Prices– Do not make any hasty decisions here. Always compare the prices of a couple of shortlisted mortgage brokers and then make the final bet. Choose one that caters your needs and the budget.

When Do You Need to Hire a Mortgage Broker?

After hunting for a house and discovering the right property, you will need to learn whether you can borrow sufficient money for snapping it up and owing it. Here, consulting a mortgage broker can help as he can guide you on the total amount that you can borrow.

The First Meeting

After choosing a good mortgage broker, he will carefully assess your financial situation to establish the total sum that you can borrow. They will ask you a couple of questions such as your income, credit history and outgoings and also ask for the different documents to prove your circumstances.

He or she will also tell you about the repayments that you can afford as well as the finest interest rate (variable or fixed rate) and provide you with the best deal based on your circumstances.

Benefits Galore

When you hire the services of a good mortgage broker Gold Coast, you can benefit in ways untold namely,

  • First and foremost, they will be impartial. Their role is to find the best possible deal for you based on your circumstances. Not being affiliated with other lenders the independent brokers will be in a strong position in finding you the finest mortgage.

  • A tied broker may provide a smaller variety of goods compared to an independent broker as they have an association with one or multiple lenders. But due to this affiliation, they can offer better incentives or lower rates of interest.

  • No matter whether you hire an independent or tied broker they can provide you with better rates of interest that are accessible when you approach the lender directly.

  • A good broker may also suggest a solicitor for the purchase of your property.

  • He will act as a mediator between the lender and you; take care of all your queries and take your stress away to organise a mortgage. Posting forms, chasing up documents and following up the phone calls, your broker will do everything for you. Joining hands with them will be a good choice especially if yours is a full-time task and it may be a challenge to manage time.

Before hiring the services of a mortgage broker to consider all the points mentioned above thoroughly. Also, do not forget to ask a couple of important questions such as the affiliation of the broker with any lender; whether he charges a fee or a commission and how much; any specific deals.

Compare the price charged by the broker and the lender, discover the timescale between the initial meeting up to the money being lent, ask questions and also chase up delays. After all, you should get your hard-earned money’s worth.

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