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Your Mortgage Broker Is Not Evil – They’re Just Drawn That Way

What’s the Joke

If you were a lawyer in the 1990’s you might as well have been sleeping with the devil. Lawyers were evil and made to be the butt of almost every joke. There are comedians who sent their children to college on the backs of lawyers. However, as the 90’s came to a close a new evil profession arose and that was of the meek mortgage broker.

How could a mortgage broker be evil? Could it really be true? Fear not, you can trust your mortgage broker and you are not signing your soul to the devil. However, there are a few brokers who do deserve to be scrutinized and if given a chance will rob you blind. However, that is a tale with almost every profession. It is important to understand that the vast majority of mortgage brokers are the good guys. They want to help you get a home and of course, they want to make a profit. Let’s take a look at what makes a good mortgage broker.

1) Mortgage Brokers Need Your Business

The vast majority of mortgage broker’s work on a commission scale and need to keep a good reputation as word of mouth is their primary way of gaining new leads. In fact, 50% of all the business a mortgage broker will receive is from repeat customers, meaning they have a monetary investment in keeping their customers happy for the long term.

2) Competition Breeds Honesty

This is a field that is growing exponentially and the more mortgage brokers there are the more competitive the field becomes. In many cities, there are far too many brokers for customers. Therefore, brokers are willing to give you the absolute best rate to again your business. It is important to remember that a broker will not get a pay check until the loan has been fully funded. This is one of the number one reasons that you will want to work with several brokers and let them know, this will entice them to work harder for your business and the best rates.

                                 

3) Laws Have Been Passed To Protect You

As the years have passed there have been several laws that have been passed to protect the consumer against shady mortgage brokers. All it takes is one simple complaint to bring the law in to investigate a mortgage broker. One of the best practices is to make sure that you have everything in writing and read it over before you sign any legal documentation.

4) Watch Out For Excess Fees

Keep in mind, that mortgage brokers can change the rate of finding a loan for you if they decide. Never neglect these fees while in the negotiating process. Understand exactly what they are and talk over any points that you do not understand. These fees can be negotiated, do not let them make you believe otherwise. It is important to understand what specific services the fees are being used for. Are they meant to pay processing fees, appraisals, or a notary service? You are already paying the broker a fee, there is no reason to pay them another fee that has been hidden under the fine print.

The mortgage broker will get a decent commission from the lender that is chosen. If there are extra fees included in the contract they must be for a specific service. If the broker is going above and beyond their service duties and the fee is fair, let it be.

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Why Hire A Mortgage Broker in Sydney?

A mortgage broker for Sydney region can best be described as professional who can help you analyze your current situation and choose the best option that suits your requirements in terms of mortgage options. These specialists have been educated in the field and are usually regulated through the issuance of licenses. In general, they offer the borrowers a variety of plans from various lenders and may work privately or be employed by a business firm.

What Other Benefits do They Offer?

People who are looking for mortgage loans hire these specialists to help them out in searching for the perfect fit for them. These brokers understand the market and the needs of the clients giving them a great chance to find loans accordingly. Normally, you will find a mortgage broker in contact with lots of lenders so that they can have a large variety to choose from.

There are many reasons why it is advisable to hire a mortgage broker as opposed to going it alone. First of all, a mortgage broker will help you understand all the necessary information related to mortgage loans. Of all the mortgages that are available, each will have a variety of parameters and technicalities that may prove to be confusing for a layman. This is the kind of information that a good mortgage broker will help sort out and explain extensively.

Once the broker has sorted through all of this information, he or she can help you narrow down the information that you have acquired so that you may be able to choose the best mortgage for you. Mortgages tend to have lots of legal jargon which may make them difficult to handle. This is where the broker comes in.

Can they get me a Better Deal?

Want to know how much can I borrow for investment property ? Whatever deal you think you can get on a mortgage loan, a broker can probably do better. They are usually so well connected within the industry having a lot of knowledge about the ways of the market. They will help you get a great loan with interest rates that are favorable thus saving you lots of money in the long run.

Hiring yourself a broker will also save you lots of time. Finding a good mortgage deal can be very time consuming, a factor that a broker will cut down considerably.

What Other Benefits do They Provide?

In addition to saving you time and money, your broker works for and is answerable to you. This means that the broker will be working on your best interests, making sure he or she gets the best deal for you. Dealing with the company directly can be a difficult task not to mention the fact that they will not always have your best interests in mind. Their main focus instead is making profit.

When it comes to mortgages, every single person has requirements they want met. A broker will help you get the best mortgage that will suit your needs as a borrower. Hiring a broker will also reduce the amount of paperwork that you have to go through. All you need to do is fill a single application and hand it to your broker. This application will then be passed on to various lenders. Any other forms of paperwork that may prove to be challenging to the borrower will be handled by the broker himself.

 

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What is a Mortgage Broker and Do Your Really Need One?

Are you trying to decide whether or not to use the services of a mortgage broker? Are you having trouble understanding the benefits a mortgage broker can offer? This article will help to clarify the many benefits and advantages that come from using a mortgage broker’s services when applying for a home loan in Australia. With a basic understanding of mortgage broker services, many Australians will find it easier to make an informed decision when it comes to getting help with their mortgage needs.

What is a Mortgage Broker?

A mortgage broker is a person who represents a majority of Australia’s mortgage lending institutions. They work in the same way as an insurance broker, offering a person a variety of options from many different companies. When you work with a bank or lender’s representative, they can only offer the products available through the lending institution that employs them. They may not even be aware of products offered by other lenders. By using a mortgage broker, you are working with an independent representative who can analyze your situation and help you choose the best product and lender for your needs.

Getting All the Bases Covered

A mortgage broker can work as an agent for most Credit Unions, finance companies, Australian banks, Trust Companies and private lenders. When you visit a mortgage broker seeking property or home financing, they can analyze your situation and recommend products from a variety of lending institutions that they have a relationship with.

In Australia, a mortgage broker is a trained licensed professional whose business is regulated by the American Securities and Investment Commission (ASIC). The Government controlled ASIC offers consumers a level of protection. The broker’s license is meant to show that when a borrower uses the services of a mortgage broker, they are working with a person who has a thorough knowledge of mortgage products and can provide a certain level of service when meeting the needs of their clients.

How Does Using a Mortgage Broker Benefit a Borrower?

You Can Save a Lot of Time: If you are shopping for a mortgage by applying directly to the lenders, you may have to go to 4-5 major Australian banks. This can be time-consuming since each bank would want you to fill out their application and meet with their representative, without even knowing if you qualify. With a mortgage broker, you will meet with one person when it’s convenient for you and they will shop for your mortgage so that you don’t have to waste your time.

One Credit Score Inquiry: When most Australians go shopping for a mortgage they don’t realize that each bank will initiate a credit inquiry. In some cases, these inquiries can affect your credit score. If you go to several banks you may have multiple inquiries listed on your credit report. A mortgage broker only needs to do one credit inquiry. After getting your credit score they can move forward with shopping for a lender.

You Can Save Money: Many people are under the false impression that they will have to pay a mortgage broker for their services. Some hesitate to work with a mortgage broker because they believe it will be expensive. What they don’t know is that most mortgage brokers don’t charge the borrower any fees. They are paid by the lender for bringing them business. When you use a mortgage broker you receive free unbiased advice about mortgages and home buying.

You Get the Best Rates: Mortgage brokers rely on repeat business and referrals, so they don’t play around when it comes to getting their clients a good deal. By using a mortgage broker, you guarantee that you’ll get the best rate that you qualify for. Some banks even offer special rates to mortgage brokers in order to get them to bring more business their way. Using a mortgage broker is often the only way to get these special rates.

You Get Fast Approvals: A mortgage broker can get your loan approved in as little as 24 to 72 hours. Most retail banks are not able to get an approval that quickly. You get a fast approval without any additional fees and at the best interest rate available. If you go directly to the lenders you may need to wait weeks for an approval and have to waste time negotiating a better rate.

You Feel More at Ease: A lender or bank representative is interested in getting their job done. A mortgage is interested in building a relationship so that you’ll come back to them the next time you need a mortgage or refer other people to their business. That means they’ll take the time to explain the mortgage process, answer any questions and provide comfort to first-time homebuyers.

The mortgage broker will take the time to read through the terms and conditions of your mortgage to ensure you don’t get any surprises later on. They will also provide you with options in case you do not like the lender or the terms of the mortgage being offered. This allows you to make an educated choice and feel at ease about your final decision.

                                 

Where Will You Go the Next Time You Need Mortgage Financing?

Australians no longer have to place their trust in a bank or lending institution when it comes time to get a mortgage. Consumers have a vast amount of information available to them, which can give them an advantage when it comes to getting a mortgage. A mortgage broker is one more source of information for a borrower. They can not only help you understand the mortgage process, they can also help you analyse the products available and choose the right one to suit your needs.

Using a mortgage broker does not mean you’re choosing between the broker and your bank. A mortgage broker can help you apply to a particular bank if you choose. However, if you go to your bank, it’s not likely that they’ll tell you whether another bank offers better terms or has a lower rate. That’s the benefit of using a mortgage broker, they offer you the chance to choose which lender will be best for you.

 

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A Guide To Selecting An Australian Mortgage Broker

Why Should You use a Mortgage Broker?

After making the decismortgage-broker-and-client-discussing-loanion to buy a home you need to start considering mortgage financing. Twenty years ago that would have meant a trip to your local bank for a loan. If you wanted to shop around for a mortgage that mean a long and tiring process.

A mortgage broker is a home loan expert who will look at your current situation and financial requirements. They can shop around for you, looking at various lenders in order to find the best possible deal to finance your home loan.

Since a mortgage broker understands the criteria used by lenders to evaluate a borrower, they are able to make sure you provide all of the necessary information with your loan application so that the process of obtaining the loan goes smoother. This often means a faster loan approval. Also, mortgage brokers have access to loan products from different lenders, which means they are flexible when it comes to the choice of loan types and interest rates. They can help find a loan from people in many different types of financial situations.

How Many People are Using Mortgage Brokers?

Many people don’t realize that mortgage brokers write over 50 percent of all Australian mortgages. Now only will a mortgage broker help a person find a loan with the best rate and terms, they will also help the borrower understand the lending process and if necessary negotiate with the lender on your behalf if you have less than stellar credit.

Before choosing a mortgage broker, shop around. The mortgage process can be lengthy, so find someone that you feel comfortable with. Many mortgage brokers have an online questionnaire for you to complete. Someone from their office will contact you after receiving your information to determine how they can help you and to provide information about their services. By applying to several mortgage brokers, you can determine which one is best for you. Before providing additional information, make sure to ask about how they get paid and if they charge a fee for specific loan products.

                                   

These Days are Mortgage Brokers Regulated?

When you choose a mortgage broker, make sure they are a member of the Mortgage Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). Members of these two groups must adhere to certain professional standards in order to maintain their memberships.

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When selecting a broker to work with, don’t just look at the ones offering the lowest interest rates. Sometimes the ones with the lowest rates are charging the highest fees. That’s why it’s important to look at the rates, the fees, and the mortgage broker’s reputation.

One of the best sources of information about local mortgage brokers is your professional real estate agent. They can often provide you with a list of mortgage brokers in the area. You can also ask family members, friends, and co-workers. You’ll feel better doing business with a mortgage broker who was recommended by someone you trust.

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