May 11, 2016
5 reasons why using a mortgage broker is vital to getting the right loan (instead of going straight to your bank).
When looking at getting a home loan, most people will head straight to their bank. But many don’t know that they could be missing out on some major perks that come with using a mortgage broker as your own personal loan consultant.
For something as major as your home loan, it is important to know what benefits a broker can provide over going directly to you bank. If you are not set on which bank or lender you want, a mortgage broker is a must visit when looking at getting a home loan.
To make it easy, I have listed the top 5 reasons to use a broker:
The biggest advantage of using a mortgage broker over going direct to your bank is choice.
Sitting in front of a mortgage broker is like sitting in front of 20+ banks with hundreds of loan products – rather than just options from one bank.
Even if you are set on using your current bank, a broker can still provide worthwhile benefits, by giving you advice on which product to choose from their range and liaising with them to ensure you get the loan when you need it.
Brokers deal with lenders on a day-to-day basis. They know what needs to be done for each lender to process your application smoothly and without delay. Banks and lenders change staff and rules regularly, so it is good to have someone whose job it is to keep up to date with changes.
They also act as your personal advocates with the lenders – so you can trust them to do everything that needs to be done to get you the loan you chose.
Following up the progress of your loan application is time consuming and can be frustrating. A mortgage broker will take over all follow up and paperwork – so you don’t have to - and become the middle man between you and your chosen lender.
A good broker will also keep you updated on the loan application at every stage, making sure the lender has everything they need to approve your loan.
Having access to a wide range of loan products means that mortgage brokers are focused on getting the right loan for your life, but this could also mean they are finding lower rates, loans with lower fees, or specific loan features to help you pay off your loan faster.
This would mean paying less in the long run, just for using a mortgage broker instead of going directly to your bank.
5. No cost to you
The service that a mortgage broker provides is usually at no cost to you, as the lender you choose will pay the broker after your loan settles. This means that you have access to a service to get the best loan – and it won’t cost you a thing.