Issues a Mortgage Broker Can Assess
An electrician might not be a great plumber and a champion architect for all his talent may not be a great opera singer, after all. All I mean is that professionals in a field know the intricacy of their particular job like on one else and sometimes their knowledge can be the difference between a worthy project and one gone wrong. Mortgage brokers are no different.
Mortgage brokers deal in a wide range of products
They have their grip over a very broad range of products, coming from a wide arc of lenders. This allows them to talk to the whole Diaspora of prospective borrowers and help them with the best solution at hand.
Most certainly, there is a home loan which is going to suit you much more than others. May be the upfront fee is your dilemma, may be you are bothered about the future implications of the variable rate or maybe you have some personal grievance against one or other aspect of a home loan and want it out of your borrowing bit. A mortgage broker who knows his craft knows the way through your dilemma, choosing for you just the kind of home loan you are ready to get serviced.
Conduct paperwork and valuations
As an aside, mortgage brokers will take up the ‘paperwork’ and the valuation bit for you so that you can be free of most of the legwork. From your side, you must ask as many questions to the brokers as possible. It is important to keep the bridge of communication well laid out.
You will do well to disclose your exact financial position to your broker and also the kind of liabilities you have on your head. Sometimes, though the broker is a near stranger, our ego may bind you from showing off your true self. This can be a fatal error and may come to haunt you in future.
Ideally, you should pre-instruct him on your credit card liabilities, any other mortgages you are running and any past default. It is good to be honest and even wise to be so; given that your full credit history is any way at the disposal of the lender.
Your mortgage broker will best assess what your earning capabilities are. Dual-income households are in a better position to pay stiff mortgages. In such cases, brokers do not mind going to the lenders and saying, “Reduce the upfront fee as my client is short on savings but it’s a dual-income household and they can pull off a stiff monthly mortgage”.
You should also ask all about the fixed rate, variable rate or the mix your broker wants you to go for. He will just not mind telling you all about the future implications of such deals. At the same time, he may also talk the issue out with you- what cash rate changes does he foresee and what his decision is based on.
Sometimes, lenders wary of borrowers’ default, ask them to go for a Lender’s Mortgage Insurance (LMI). The borrowers often have grievances against such pre-conditions but truth be told it is a lender’s only escape route if the borrower fails to repay the loan. Your mortgage broker is the person who can educate you on the issue and also suggest you the best LMI offer.
If you do not ask the right questions you may not get the best answers but if you know what to ask you will find your mortgage brokers a really informed bunch.
What questions do you have in mind for your mortgage broker?