Finding a property you love and submitting an offer pending finance used to be the first step to buying it, but in these days of rapid house sales and housing shortages, it pays to have your mortgage sorted before you even go looking. Missing out on a house you have fallen in love with is disheartening. Being able to quickly negotiate a sale with an approved mortgage gives you the edge in what is often now a multiple offer situation.
Visiting a mortgage broker to source the best mortgage rates gives you an immediate advantage. They have mortgage broker networks to access, gaining the best possible terms and mortgage interest rates. A mortgage broker finds multiple lenders who will compete for your home loan, potentially saving you a lot of interest. If needed they will also approach specialist and non-bank lenders.
Through the financials you provide, a mortgage broker can figure out just how much you can borrow. There’s a lot of variation in lending amounts from bank to bank and a broker can negotiate on your behalf, especially important if you are self-employed. They’re experts in current market conditions, mortgage products and current interest rates. Because they only sell mortgages and related products and are registered financial advisors, they’re aware of the pitfalls and your best options in the current market conditions.
A great mortgage broker can recommend to you which bank will suit your individual circumstances as each bank and lending agent is different. They can decipher the unfamiliar jargon so you know your options; making early repayments, fixed or floating rates and perhaps paying interest only for a term. Also, different banks are more favourable at different times, depending on overseas influences.
If you are a first home buyer or your deposit is less than ten percent, a mortgage broker can present your requirements to different banking institutions and find what is most favourable to your situation. Many brokers have previously worked in banking and have the inside knowledge you need especially if you’re worried a bank may reject your application.
As mortgage brokers are independent, they’re unbiased and objective. They are working for you. Your ultimate success produces the broker’s reward as they are paid a success fee by the bank or lending institution.
Most hopeful homeowners are busy working full time, juggling children and managing a household. Shopping for a mortgage is time-consuming and confusing. It can also be expensive if you accept a higher rate and less favourable conditions than a mortgage broker can score you.
Mortgage brokers are mobile and they work all hours, coming to your home if required at a time that suits you.
You will receive ongoing support from a mortgage broker with an annual review of your mortgage structure. When the fixed mortgage rate is due to expire, your broker can renegotiate terms or even find you another provider if a better rate is on offer elsewhere.
A good relationship with a skilled mortgage broker is an essential to getting ahead in real estate. Their knowledge and experience are invaluable when negotiating a tricky and unfamiliar path.