When you are looking to purchase a property, there are numerous advantages to using a mortgage broker. Buying a home or property is likely the largest purchase most people will make in a lifetime, and many factors make a big difference in how long it takes to pay it off and if the mortgage terms suit your needs. A mortgage broker Maroubra is a valuable asset to have advocating for you throughout the process that can help you in a number of ways.
Finding a Lender
The biggest challenge to securing a mortgage is finding a lender that will accept your terms, risks, and finances and lend you the funds to buy your property. When you take on a mortgage, the banks or lenders don’t want to take on a high-risk lender. They want to lend money to people who have reliable jobs, some assets, and who are the most likely to make their regular mortgage payments on time.
Your mortgage broker will do all the research on your behalf and approach a number of lenders with your information to see which one offers the best terms. Other than employment and your financial health, the money you put down on the mortgage (down payment) has a large impact on your ability to get a mortgage and find a lender easily. The larger your down payment, the smaller your mortgage is, and that shortfall of what is left on the purchase price after your down payment is misused off is the amount the bank will be lending you.
Interest Rate
Anyone who has ever had a mortgage knows how important a factor your interest rate is. When you are talking about hundreds of thousands of dollars, the interest on the mortgage the bank is charging you can make a big difference to your payments and your ability to pay down the mortgage over time. A point or half a point can make a huge difference over the length of a 20-year mortgage.
Your mortgage broker’s main job is to secure a mortgage for you that has the lowest possible interest rate, and they do all the shopping around for you.
Mortage Terms
Your mortgage broker will also be able to help you with the other mortgage terms such as the length of the first term; whether it is fixed, variable, or open, and that means whether your interest rate is locked in and for how long. Mortgages have other terms as well such as what happens if you skip a payment or how often you can make extra payments, or when/if you can make large lump-sum payments.
Enlisting the help of a mortgage broker Maroubra is the best way to ensure you are getting the best mortgage and interest rate that suits your needs.
