How to Choose a Mortgage Broker.
So, you're purchasing your first house. You've been told by your mates that you should really get in touch with a good, free mortgage broker in Melbourne. But how do you choose which mortgage broker is the best for you?
Well, first things first—you want to find out about the mortgage broker you're considering. Look at their experience and expertise. What's their background? Did they work at a bank before becoming a mortgage broker? Do they only handle home loans, or can they do business lending as well? It’s important to understand what the mortgage broker has done in the past, the best mortgage brokers always have a significant amount of time either working in a bank or been a broker under their belt.
Things to Check When Selecting a Mortgage Broker
Secondly, make sure the mortgage broker you’re dealing with has the proper accreditation and licensing. They can’t operate legally unless they have the necessary education and are registered with relevant industry bodies. There are plenty of dodgy players in the market so make sure you are engaging someone with a trust track record.
Next, take a look at their lender panel. Do they have access to all the major banks? If they only work with a limited number of lenders, who do you think they’re going to send you to? This is crucial because different lenders offer different rates and fees, which can impact your loan significantly. You don’t want a broker to send you to one particular lender just because he will get paid more.
The Element of Trust
You can also check their reviews on Google. What are people saying about them? Are they highly recommended? Has someone you trust personally recommended them? Transparency in fees and commissions is also important, are they open and honest about what it costs to use their services? You need to understand how they get paid and whether there are any hidden costs.
Did they take the time to sit down with you and truly understand your situation? If they’re going to find the best interest rate and conduct an in-depth loan comparison, they need to take the time to understand you as a person and what you want financially. This is the most important piece to the home loan process. If this isn’t done properly you wont get the best outcome for you.
A Couple More Points...
How strong is their customer service and communication? They should be responding to your queries quickly. We believe they should be responding within 24 hours at the latest. Avoid mortgage brokers who take days to get back to you.
Are they specialised? Do they focus on home loans, business loans, or do they handle everything under the sun? Ask them about their turnaround times—how long will the process take? How will this impact your settlement or finance clause you have a deadline for? there are costly penalties you could pay if your broker isn’t up to the task.
Ongoing Support from Mortgage Brokers- What to Expect
Finally, what kind of ongoing support do they provide? In my opinion, the best part about having a mortgage broker is that they look after you for the life of the loan, always making sure you have the best deal in the market. If a broker just completes the transaction and disappears, that’s a big red flag.
