Who is Mortgage Broker?
In short terms, a mortgage broker is a mediator between a mortgage lender and a homeowner. Mortgage broker will assess the financial condition of the borrower, find the appropriate mortgage products, collect the necessary documentation, advise clients on the mortgage product tailored for them and facilitate loan approval process.
Benefit Of Using a Mortgage Broker
Having Said all this, why hire a mortgage broker? Some of the key benefits of using mortgage and finance broker are listed below.
Assess Your Financial Situation
One of the benefits is that your mortgage broker will take the time to discuss your needs and circumstances with you. This gives them an opportunity to determine which type of loan is more appropriate for you.
For an easier process, you will be required to provide documents for your identity and your financial situation. These documents will include a list of 100 points for identification, bank statements to show savings, ATO tax statement, salaries, outstanding loans, statements etc. Your mortgage brokers will tell you what documents you will need to provide.
Once your mortgage broker has an understanding of your goals and financial situation, they will discuss various available credit products.
Find a Loan For Your Situation
After assessing your financial need and goals, your mortgage broker explores hundreds of credit products databases from various lenders, including large banks, small banks, credit unions, and other lenders.
This database is constantly updated and has details on the latest offer by banks. Sometimes your mortgage broker may have access to certain proprietary credit products that are not available elsewhere.
Sophisticated software analyses your needs & loan amount and matched them against all available lenders. Your mortgage brokers will recommend a product or products that meet your needs.
You may also be provided with a copy of comparing lenders rates. The comparison rates include interest rates, fees and costs related to the loan. This is a tool to help you identify the real cost of a loan (comparison rate). Some kind of “apple with apples” approach help to compare packages of the loan easier.
To continue, your mortgage broker will help you complete the required paperwork and contact the lender on your behalf. This will include filling out and submitting your mortgage application and permanent communication between all sides until the mortgage is approved (loan is settled).
Your mortgage broker is also required to notify your appeals. This is called an internal dispute resolution procedure.
Providing Tips At Each Stage
There are several steps in the process of loan and an expert mortgage broker support will help from the initial steps, such as obtaining proper pre-approval (whereby your requested loan is “approved” under certain terms) establishment. Mortgage broker can also provide a home loan health check on the trail. After a “health check”, mortgage brokers can help you lower your payments, unlock equity in your home or debt consolidation. They can also help refinance if your goals and financial situation are changing.
If you are looking to refinance your existing home loan, buy a new property or an investment property, please remember Nice Loans, your Independent and local Mortgage broker from Chermside, Brisbane.