Why use a mortgage broker?
Brokers do all the application on your behalf
The toughest part of getting a mortgage is the sheer amount of labour it takes to get to completion. Having to provide endless rounds of paperwork and negotiating for a better deal, it feels as if your brains start crawling out of your eye sockets.
This long and tumultuous process is taken care of by your mortgage broker. In the last 5 years, broker workload has increased by 40 per cent, spending over 20 person-hours to process a deal with the ever-increasing compliance burdens.
But the best part of the process is the end result when customers get a key to their new house. That’s probably the favourite part for any broker. It means all the hours of work that they put in have paid off.
Brokers ensure you get the right home loan deal for you
In the mortgage industry, you are probably better served to go to an experienced and competent mortgage broker who specialises in finding the right deal for your specific goals and circumstances. They have the market and industry know-hows. They understand which lenders match your unique situation and which lenders don’t.
The way brokers operate their business is they will often have a chat with you, understand where you are at and explain the financial aspects of buying a home to you to help you gain more confidence. They will then thoroughly investigate, look at a whole range of lenders who will cater for all your variables. They basically do all the work behind the scenes to shortlist a few options that will work for you and tell you why. As a consumer, that mortgage broker has just done all that work for you for free.
Brokers have enviable skills when it comes to mortgage shopping
So what happens if I go directly to a lender? Think of it this way: If you went into McDonalds, will they tell you that a Subway Sandwich is better for your personal circumstances? Banks are great but when you're shopping for a mortgage, it's not a very wise move to go directly to a bank without weighing your other options. Banks can only offer you the products in their line-up so you're potentially missing out on a better deal from another lender that could help you save a significant amount in the long haul.
Even if you find a lender online, you should be very careful in analysing that option because the devil is always in the details. Remember: Once you put up an application to the lender, that’s now on your credit history. If there’s any hiccup, it’s going to affect your situation going forward.
Save you valuable time
Nothing will give you a broader perspective than speaking with a mortgage broker. Brokers stay up-to-date, observe and document all the latest rules, regulations and products religiously. This of course will lead to a more structured approach as well as a better strategy when it comes to getting you a home loan. Plus they have sophisticated software, intel and relationships that make the entire process much quicker and as stress-free as possible for you.
Using a mortgage broker doesn’t mean you just have to sit there and be very still and let them do all the work. If you find a loan option that you think might be better, before deciding on anything, have a discussion with your broker and just be transparent about it and ask them to help you compare. Sometimes people are drawn to cheap rates but underneath the front cover, they will find a lot of other things that don’t apply to their case so they wasted all this time. Hence why people take confidence in using a mortgage broker because they can uncover all those since they have been dealing with it every single day for years.
Those are some of the reasons that naturally lead to using a mortgage broker.
