Using a mortgage broker has become a popular way of finding that ideal home loan, so if you’re hoping to get onto the property ladder, it’s well worth giving one a try.
However, you’ll first need to weigh up whether a brokerage service is right for you, which means understanding the ins and outs of exactly what they do.
The first steps
You will need to make sure you’re taking on the services of a reputable mortgage broker, which is why it’s essential to do your research.
There are various ways to find the best broker for your needs. Personal recommendation is a good place to start, otherwise you might want to look online to see what services are on offer. It’s also a great idea to check they are licensed.
Once you’ve decided which broker you’d like to go with, it’s time for your initial meeting. This will give you the opportunity to discuss what you want from your home loan.
It might be worthwhile meeting with two brokers as well, to ensure that you cover all your bases.
Your mortgage broker should suggest a range of products that are suited to your needs. Anyone who is good at their job will be able to get a good idea of the type of mortgage that best fits with your individual circumstances.
This expert advice can prove invaluable, especially if you’re looking at home loans for the first time. You might not realise it but there are various different products available and not all of them will be suitable for your requirements.
Locating the best home loan
Your broker will then set to work on finding a home loan that suits the criteria you’ve discussed.
They’ll generally have a list of preferred providers, which could limit the amount of mortgages you potentially have access to.
Make sure you shop around to make sure the decision you go with is right for you. Don’t ever feel pressured into signing on the dotted line until you’re completely happy.
Settling on the perfect mortgage
Once a home loan has been found, your mortgage broker should give you a written agreement that outlines the terms of the mortgage.
This will tell you the amount of money you’re borrowing, as well as the rate of interest and any fees you’ll face. Seeing everything in black and white should help you better weigh up if it’s right for you.
If you decide it’s the right mortgage for you, sign the necessary documents and the rest of the process should be taken care of.
Article first appeared on and is courtesy of raywhite.com.
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