A mortgage broker will save you time, effort and most likely money in selecting a home loan. To do this, they will do the following:
Assess your needs
A mortgage broker takes the time to discuss your needs and circumstances with you. This gives the broker the opportunity to determine which type of home loan is most suitable depending on your current needs and financial circumstances.
As part of the process, you will need to provide documents to support your identity and financial situation. This includes a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, pay-slips, any outstanding loans, statements, etc. Your mortgage broker will advise you of the relevant documents that you will need to bring with you to your meeting to facilitate this process.
Once your mortgage broker has a clear understanding of your financial situation and goals, they will discuss the various home loan products available. They will provide you with home loan comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.
Find a suitable home loan for your situation
Your mortgage broker will search their database containing hundreds of home loan products from their panel of approved lenders. This will include major banks, smaller banks and other lenders. This database is constantly updated and has details of the latest deals. Sometimes, they can have access to some exclusive mortgage loan products which are not available elsewhere. The mortgage broker will then recommend a product or products, which suit your needs. You should also be provided with a copy of the mortgage lenders comparison rate schedule. Comparison rates include both the interest rate and fees and charges relating to a loan and are a tool to help you identify the true cost of a loan.
Manage the process
If you wish to proceed, the mortgage broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your mortgage loan application and the on-going communication between all parties until your home loan is approved and settled. Your Australian mortgage broker is also required to inform you of their complaints process. This is called an Internal Dispute Resolution procedure and all members of the MFAA (Mortgage & Finance Association of Australia), COSL (Credit Ombudsman Service Limited) and BFSO (Banking and Financial Services Ombudsman) have requirements in this regard.
Provide advice at every step
There are many steps in the mortgage loan process and your mortgage consultant will help you from your initial steps, such as getting pre-approval (where your loan is “approved” based on certain conditions such as loan value) right through to possible refinancing at a later stage.
In essence, purchasing a home should be an exciting and fun time, and it is more likely to be if you use the services of a mortgage broker, rather than going straight to an individual bank or building society. Brokers are not bank managers, and are much easier to talk to. They make their money by offering mortgages, and you are therefore liable to get a good service, the best home loans, and walk out with a smile on your face after speaking to a broker than a bank manager!