Read 5 Reasons to Contact a Mortgage Broker for Home Loan Approval, by guest author Glen Atkins, Principle Broker at Simplifi Lending.
Online calculators can be great to get a rough idea, but there are so many variables in a home loan application that it can be very tricky to navigate or even know where to begin.
Rather than going direct to your bank, consider a mortgage broker for your home loan pre-approval. Why could this help you and what can a broker offer that the bank can’t? Below are the 5 top reasons to consider getting in touch with a broker to help you with your finance.
- Mortgage Brokers Have Access to More Lenders and Banks
A mortgage broker operates very differently to a bank lending officer. As an employee of the bank, a lending officer will only offer and compare the products available from that one, specific bank. They will not make you aware if the bank next door is offering a much better deal for your circumstances!
A mortgage broker has access to dozens of lenders, from the Big 4 banks through to sub-prime lenders who specialise in home loans where account conduct or credit impairment may be a concern. A mortgage broker’s role is to match your unique circumstances to the right lender and they will compare many different options across the market for you, including some lenders that don’t even have branches! A mortgage broker will work for you and is required by law to work in your best interests when considering options for you- banks are not bound by these requirements.
- Mortgage Brokers Know Lender Policies Inside Out
A mortgage broker will be across the lending policies of a substantial number of lenders, making them better suited to matching you with the right lender. Whether you are self-employed, casual, have bonuses or regular overtime, different banks have different rules for these types of income.
As part of your preliminary assessment, a broker will not only make sure that you get a great deal, but that you meet that lender’s criteria for applicants. Applying to a bank without knowing if you meet their policy and getting a declined application can make it much trickier to obtain finance moving forward. Mortgage brokers are experts in vetting an application before it is submitted to a lender, ensuring you have the best chance of loan approval.
- Mortgage Brokers Are Generally a Free Service
With very few exceptions, a mortgage broker should be available to you at no upfront cost. Mortgage Brokers are paid a commission from the lender that your loan is placed with once the loan settles. This cost to the bank is priced into your home loan, much like the costs of a bank operating and staffing a branch is priced in.
There are a few unique circumstances where a broker may charge a fee, including:
- Your loan size is very small (generally under $150,000 or so)
- Your circumstances are complex and more research or preparation is required for your application
- You are purchasing with the intent to sell in a short time period (i.e. property renovating and flipping)
As a general rule, it may pay to look into a different mortgage broker if the one you are looking into is trying to charge you an upfront fee.
- Mortgage Brokers Save You Time and Hassle
Mortgage brokers make the process of applying for finance simple and far more time efficient than doing the research yourself. They have access to an advanced suite of software that makes providing the required information for your application simple.
Whether it’s a secure document upload system, automated bank statements or online calculators and product comparison tools, your mortgage broker will do the legwork for you.
- Your Mortgage Broker is Your Point of Contact Moving Forward
A mortgage broker’s job is not over once the loan settles! They are your personal point of contact post-settlement for anything loan related:
- Refinances
- Top Ups
- Loan switches (fixing, interest only repayments, product switches etc.)
- Loan pricing reviews
- Future lending requirements
This ongoing service is a strong part of a mortgage broker’s service proposition and you can contact your broker any time to enquire on the above. Good mortgage brokers will also have a loan review process where your lending is periodically reviewed to ensure it is competitive in the market.
Whether you’re just starting your home buying journey and want some preliminary information, or are not sure if your existing home loan is competitive in today’s market and want to see what is on offer, please feel free to reach out to us for an obligation free chat.
SimpliFi Lending- Mortgage Broker Brisbane
0411 601 328
[email protected]