If you’re a first-time homebuyer, it can be a stressful experience to shop around for a home loan, and you could end up without a suitable offer.
Chances are if you approach experienced home buyers, they’ll tell you to use a mortgage broker.
Now, you must be asking yourself: why you should I use a mortgage broker and what do they do. You’re not alone.
Many people don’t understand the role a mortgage broker plays during the home loan application and home buying process. Home loan brokers play a crucial role in the Australian mortgage industry, and in this article, we break down for you four primary functions of mortgage brokers.
Brokers Evaluate Your Financial Status
A mortgage broker takes time to understand your financial situation before recommending a home loan product. They begin the process by assessing your current financial status.
Brokers will typically request that you present identification documents to confirm your identity as well as ones that support your financial situation. Some of these documents include your payslips, bank statements, tax returns, saving reports, and others.
With these documents, the broker will have enough information on your financial situation to advise you on the best loan for you. Also, this information enables them to understand your objectives and needs.
Then, they will advise you accordingly and suggest the right lenders and home loan products that match your situation.
Brokers Recommend the Best Loan Products
Upon evaluating your financial situation, a mortgage broker will move on to getting the best home loan product for you. They do this by checking through their home loan products and lender database.
As intermediaries between you and the lender, brokers keep a massive database of the latest loan products and interest rates. Their databases feature loan products from large and small financial and credit institutions. Also, they keep updating these databases as new deals and special offers arise.
After finding suitable deals, they’ll recommend one or more loan products. A good broker will pick loan products that are suitable for you after a thorough assessment of your financial situation as well as current trends and fluctuations in the financial market.
Also, you’ll have the chance to compare home loan product rates and costs, which will help you to pick the best mortgage product that aligns with your current needs and objectives.
Brokers Prepare and Manage the Home Loan Application Process
The broker’s job does not end when you find a suitable loan deal. Instead, they take up the role of helping you complete the application process.
Your broker will collect all the necessary information that potential lenders require to offer you a loan. They will:
- Fill the home loan questionnaire on your behalf
- Complete the application form
- Review the documentation
- Send the application to the lender for approval
Once approved, the broker will help you to finalise and sign the mortgage documents. Also, you’ll continue receiving communication from your broker until you receive your loan. This way, you get to avoid the stressful tasks involved in the home loan application process.
Brokers Provide Professional Advice throughout the Lifetime of Your Loan
Mortgage brokers are not out to make a profit from your mortgage.
Instead, they work as your partners throughout the life of your home loan. Mortgage brokers have an in-depth knowledge of the loan industry, and it’s in their best interests to share this information with you ethically while holding your hand every step of the way.
Brokers will guide you through the pre-approval stage and help you to get qualified. They’ll also help in assessing your loan health. Plus, they offer a hand in facilitating loan consolidation or seeking a refinance in case your financial status changes in the long run.
Crucially, mortgage brokers like Bris Loans work independently, so, they are likely to offer unbiased advice. Their experiences in the financial sector ensure that you get the answers that you need, and their objective is to form a long-term relationship with you. Remember, all these services are free as brokers get their commissions from the lender.
As noted, a mortgage broker plays a vital role in the home loan process.
They take up the hard and stressful roles for you and work with your interest at heart to ensure that you get the best home loan deals and interest rates.
Here at Bris Loans, we have a large team of professional mortgage brokers who can help you in this process. In case you need any assistance from a mortgage broker and are unsure of where to start, please feel free to contact us. We are here to safeguard your interests and help you get the home of your dreams.