The Benefits of Having a Mortgage Broker
What is a mortgage broker Adelaide? A mortgage broker plays two roles: first, to help you find the perfect loan product and mortgage package for your home-buyer purchase, and second, to direct you through the loan application and approval process. Brokers often utilise their arsenal of mortgage and bank lending connections and the wholesale rates they receive…sometimes for free, other times at a cost. Also, brokers have access to real estate listings and purchase options unavailable to individual buyers.
A mortgage broker Adelaide can provide an invaluable service by providing valuable information regarding mortgage offers and loan programs. However, there are pros and cons to being a mortgage broker.
Pros. The most obvious benefit of becoming a mortgage broker is that you don’t have to research and shop around yourself. Your broker is a source for multiple lender options, so you don’t have to wade through loan offers yourself. Your broker may have access to several lenders, so you can be sure to compare the costs and terms of those loans. If a certain lender doesn’t have the loan program you’re looking for; your broker may be able to find a compatible lender for you. Shopping around is a time-consuming task, but it’s worth it when you know that you’re getting the absolute best deal for yourself and your family.
Cons. While shopping for a home buyer is always a good idea, there are some potential pitfalls when using a mortgage broker. Some brokers have a “line” with specific lenders, meaning that they have contact information for just a select group of lenders, limiting the lender options available to you if you don’t use a broker with the same affiliation. Some brokers insist on working exclusively with a particular lender, so when the lender you’re interested in makes an offer, your broker is not privy to any offers from other lenders, which can make the process more difficult and frustrating.
Another con is the potential commission an individual mortgage broker Adelaide can earn. Because brokers receive their commissions directly from lenders, it’s not surprising that brokers can offer inflated interest rates on loans to secure home buyer business. Because of this, it’s important to question whether or not the quoted interest rate is a true apples-to-apples comparison of the loan amount, fees and penalties attached to the loan and whether the mortgage broker is even qualified to do the quote analysis. This is why it’s typically recommended that you use a mortgage broker with at least five years of experience.
Finally, there is the issue of credit reports. Many home buyers think they’re getting a fair quote from a mortgage broker because they gathered all the borrower’s lending quotes. However, this does not mean that the credit report reflects all the information regarding different lenders and each one’s potential risk.
In short, a mortgage broker is just like any other financial advisor except that they work exclusively with one specific lender. If you’re considering a home loan or refinancing, it’s wise to discuss the mortgage lender options before selecting a mortgage broker. Doing so will help ensure that you receive the best possible rate and terms from a mortgage lender that matches your unique needs.