If you are in the market for a mortgage, whether it be your first ever home loan or an investment property, then there are two main ways that you can apply. These are via the traditional bank route, which is applying direct to lenders with all of your information or through what’s known as An Australian Mortgage Broker. A broker will work on your behalf to find the right product for your needs, but how do they actually match borrowers up with suitable loans? Here we take a look at how they do their job and why you should choose this option instead of going directly to one of the big banks.
The Easy Way To Find The Best Lender For You
Most people who decide they need help finding a new home loan don’t really know where to start or who to go to. There are hundreds of banks and finance companies out there, each offering a range of mortgages in different interest rates and repayment structures, so where do you even start? That’s where an Australian Mortgage Broker comes in.
The Good One’s Will Ask You Questions About Your Situation
Brokers will not only ask you about how much you want to borrow, but they’ll also ask if you have any other debts such as credit cards, personal loans, etc. They might also ask you what your goals are; when do you see yourself buying your next property? Do you need the money before then, or is this just for investment purposes? All of these details can help them narrow down which lenders might be able to best suit your needs.
They’ll Ask You About Your Credit History.
Now, this isn’t as intrusive as it sounds. Quite often, brokers are just checking to see if your credit report is something that will have any impact on the loan you go with. For example, let’s say they found two lenders who could potentially give you the same repayment structure, but one was charging a higher interest rate because of negative marks on your credit history. A good broker will tell you this and help you make an informed decision about which lender is actually going to cost you more overall.
They’re On Your Side
They aren’t there to try and sell you the most expensive loan possible, nor are they there to steer you into products that are not truly ideal for your needs or situation. They’re on your team and will actually be able to find a better deal because they have contacts with all of the big banks, finance companies, and building societies. They might even get you a good deal that isn’t available to the general public yet.
They Can Help You With Your Documentation
It’s always very easy when applying for a home loan to forget some little detail in your documentation. This can lead to applications getting delayed or declined outright if this happens at the very beginning of the process. A good broker will help you through everything from making sure you’ve got proof of income in order up until signing all documents when it comes time for settlement.
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