How to find a good mortgage broker - June 2020
By Guest Blogger, Peter Koulizos, property lecturer and author
Getting a loan these days can be very trying. Banks have many more hoops that you need to jump through to qualify for a loan and they are very forensic when it comes to looking through your bank statements, credit card details and expenses.
A good mortgage broker can greatly assist you in finding the right loan but what makes a good mortgage broker?
What to look for in a mortgage broker?
A good mortgage broker should be many things, but one critical aspect is experience in property. Just like I want my accountant to be experienced in property, my lawyer to be experienced in property, I also want my mortgage broker to have personal experience with property investment. Do they currently own investment property or have they in the past? Do they own their own home? One distinguishing factor between an average mortgage broker and a good mortgage broker is personal property experience.
How do you pick a good broker?
As with many things in life, selecting the right professional or tradesperson to do a job is often down to “gut feel”. However, there are some more tangible criteria that you can use in choosing the right mortgage broker.
Firstly, do they demonstrate basic business skills such as returning your calls within in a reasonable amount of time? Do they reply to your emails within 24 hours? Do they turn up on time to appointments or are they consistently late?
Secondly, a good mortgage broker should be explaining which is the best mortgage for you rather just telling you what is good for you. If a mortgage broker can involve you in the decision making, it is beneficial to both parties.
Thirdly, a mortgage broker should be a member of one of the relevant industry associations which has a code of conduct or code of ethics. These may include but are not limited to the FBAA (Finance Brokers Association of Australia), MFAA (Mortgage and Finance Association of Australia) or PIPA (Property Investment Professionals of Australia).
Finally, you should be looking for a strategic mortgage broker. For example, look for a mortgage broker who asks you questions about your future plans so that the mortgage that you take out now not all suits you for the present but also the future.
What do they do that you can’t do yourself?
Why would you bother using a mortgage broker when you can go straight to the bank? Unless you have time to visit or call 30 to 40 different lenders, you are much better off using a mortgage broker. Someone that has ready access to that many lenders would surely find you a better selection of loans than if you went to just one bank.
How can you know if they are reputable?
A simple search on Google may result in reviews of a variety of mortgage brokers by others who have used them in the past. Alternatively, recommendations from others or word of mouth is a great way to help you select the right mortgage broker for your needs.
Can they speed up the application process?
As mentioned earlier, unless you know exactly who to talk to at each of the 30 to 40 lenders, a mortgage broker can be a great time saver. They have their contacts and business development managers within each lending organisation and can often get answers quicker than you or I could get because they know which questions to ask and importantly, which answers to look for.
Benefits of working long term with a broker
Being with anyone for a long time, you get to know them, and they get to know you. Dealing with a mortgage broker is no different. The longer your relationship, the better they know your goals and aspirations and your requirements in relation to finding the right mortgage for you.
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