How to Choose a Mortgage Broker

mortgage broker parramatta

Planning to have a home of your own? In many ways, having your property can be a highly rewarding experience. But for first home buyers out there who still have a little trouble navigating through the buying process, professional help goes a long way. A good way to find the best deals and the best lenders out there is to connect with a reputable mortgage broker.

What is a mortgage broker?
A mortgage broker acts as a bridge between the borrower and the lender. Brokers are licensed and regulated financial professionals who assist the borrower in finding loans that suit their needs and requirements. They also work closely with the borrowers to assess their financial capability and identify which loans are best for them in the long run.

They help out in many other ways as well. This includes explaining financial jargons and proceedings that might not be familiar to the borrower. They also engage with multiple lenders, trying to find the ones that offer good value loan deals. They provide the options and opportunities that borrowers would otherwise not see if they had decided to go at it alone.

After arranging deals, negotiating on their behalf, and making adjustments to suit their client’s needs, brokers then proceed to help out with the other important half of the process – paperwork. They can take on the task of compiling application materials, pulling the borrower’s credit history, and verifying income and employment information.

They work closely with real estate agents, underwriters and closing agents, lenders, and many others just to make sure that the deal is closed promptly.

There are so many mortgage broker in Parramatta in this day and age. But how can you find a good one? Having a broker right by your side is advantageous because they can help you with the intricacies of the process and assist you in filing all the necessary paperwork.

However, just because they carry the title does not automatically mean they’re the best ones for you. It is important to find a broker who knows how to listen to your needs and understands your situation. Here, we have some tips on how to choose a good mortgage broker.

How to Choose a Mortgage Broker

Ask Around
Start your search by asking friends, family, colleagues, and other people in your vicinity. There is a chance that you already know someone who has worked with a mortgage broker before. Recommendations from people that you know are incredibly helpful since you can ask them how the experience was and what you can expect out of their broker’s services.

If the people that you know cannot give any recommendations or haven’t worked with a mortgage broker before, then you can try reaching out to reputable lending institutions, too. This would be easier, especially if you already made some transactions with the bank before. Then, they will be more inclined to refer some trusted brokers to you.

You may also turn to the internet for help. There are countless websites dedicated to finding good mortgage brokers in your area. What’s even better is that these online forums also provide a more transparent review of the broker’s services. There are many channels you can use to find a good broker, and we recommend using everything at your disposal to widen your search.

Verify Your Options
Once your list of potential brokers is ready, you can go to the website of the Australian Securities & Investments Commission (ASIC) to verify that all the names in your list are licensed professionals. ASIC Connect’s Professional Registers now allow consumer access to a broker’s licensing information. This makes vetting the brokers by yourself so much easier.

Aside from indicating their licensing information, you can also check if a potential broker has had any self-reported disciplinary actions. There are many other platforms you can use to gather information on a potential broker, so use those to your advantage. To further confirm the information you have gathered online, you may also try to correspond with your state’s regulatory office.

Interview Some Candidates
The journey to buying your own house and land is a long one. Having an experienced professional to guide you and assist you is a good thing. But you need to be wary about brokers who may be looking out more for themselves than for you. That is why holding an interview before you hire them is important.

Here are some of the questions that you can ask your potential brokers:

  • How many years have you worked as a mortgage broker?
  • Can you walk me through your application process?
  • How many lenders do you work with?
  • Are fees paid by the borrower or lender?
  • How much is your fee?
  • What are my chances of getting a mortgage?
  • Can you provide any references?
  • Brokers work on a commission basis and some may be forced to sell mortgages from lenders that are not as competitive as you’d expect. So, it is important to do your research. Vet not only your broker but the loan options they have access to must be examined as well.

    Calculate the Costs
    Brokers have their compensation process. But in general, there are two main ways: they can either be paid in fees by the borrowers or on commission by the lenders. The rates may vary, but brokers can earn about 2.75% of the total amount. This, of course, depends heavily on who’s paying.

    To have a full picture of how much money you have to prepare, be sure to ask for a complete quotation from the broker. Calculate all the costs and determine if you can afford having a mortgage broker at the moment.

    Work with a Trusted Mortgage Broker
    There are many benefits to having a mortgage broker. You will get access to the best loan deals out there. If you are pressed for time, you can also let them handle the paperwork. They take the heaviest tasks out of your hands, so you can have assurance and peace of mind in the process. The fee you’ll have to pay will be worth it as long as you work with the right one.

    If you are looking for a mortgage broker in Parramatta, Penrith, or Gold Coast, know that you can turn to the experts at FinKonsel. We can also extend help in refinancing. Get your dream home and work with professional brokers today.