Loans and mortgages aren’t the most exciting things in life, but they are necessary. If you want to buy a house, start a business, or invest your money, you will need a mortgage. Going through the application process can be daunting and overwhelming, but working with a mortgage broker can make for a smoother experience.
Mortgage brokers are mediators between lenders and borrowers. They are crucial marketing arms of financial institutions to find suitable clients. On the other end of the spectrum, they provide valuable information and insight so that borrowers can make informed decisions.
Many people may approach you offering help, special deals, or exclusive rates on mortgages when you search for financing. How can you tell who to trust with your finances? Here are several indicators that can help you determine if you have found a good broker:
They are licensed and experienced
Mortgage brokers are licensed professionals. Since they handle financial transactions, their practice is strictly regulated and monitored. Be wary of unqualified individuals who claim to be brokers but do not produce proof of licensure. If you are a first-time buyer or mortgage applicant, you will want to work with someone who has several years of experience under their belt. Even if they don’t have an agency of their own, many brokers work in apprenticeship. They should have garnered substantial exposure to the mortgage industry’s intricacies to give you valuable advice.
They ask questions first
A great mortgage broker will guide you through the application process and give you options based on your unique situation. They won’t push financial products or force you to accept loan terms without first meeting you or discussing your expectations. You can tell that the broker is looking out for your best interest when they spend time to get to know you and understand your needs.
They give you options
Some borrowers make the mistake of focusing on the lowest interest rates. However, the rate is only one feature of a loan. You will need to consider term limitations, fixing periods, and upfront closing costs when applying for a loan. Mortgage brokers can give you several options to choose from since they have access to exclusive deals and bulk discounts from lenders. They are also adept at finding and comparing loans based on a particular client’s budget and expectations.
They put you on the path to eligibility
One of the broker’s primary responsibilities is to organize borrowers’ applications and get the required statements in order. Unfortunately, some first-time mortgage applicants don’t qualify for loans based on their initial credit history review. Others may not have enough borrowing capacity to buy the home or start the business that they want. A good mortgage broker will not consider rejection as the end. Instead, they will recommend some changes to the way you handle your finances so that you can have a greater chance of qualifying when you re-apply in a few months.
You should be able to trust the mortgage professional you work with since they can be the reason you walk away with a deal or a dud. A capable broker will do more than act as a conduit, passing documents from one hand to the other. Be critical of people who you entrust with your finances and your future. Mortgage lenders have incredibly stringent standards for determining who they can trust with money, and so should you.
Are you looking for the lowest interest rates and the best deals in Perth? We can make finding financing easier and simpler for you with our trained experts. All of the Finance Managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. Visit our website or call us and enquire today!