We find the best home loan
Mortgage Broker Melbourne is here to help you find the right mortgage for your situation, what ever that may be.
We can handle your loans for any purpose whether it’s a first home, or your second or third, buying and investment property, refinance or consolidation or even buying property for your self managed super fund.
We have simple and streamlined process and our staff have the knowledge and experience to find you the right lender and the most competitive rates.
So call us today, or leave you details in our site or on our contact page and we’ll contact you within 24 hours to assist you in your next property purchase.
What is a Mortgage Broker?
If one has tried to access a mortgage instrument in an effort to own their, home then chances are high that they have come across the term mortgage broker. One could also have likely heard about some good things about them or even bad things. Regardless of the stories one has heard there is only one explanation to give if asked to explain mortgage brokers. A mortgage broker is a person who acts as the middleman between the mortgage lender or bank and the homeowner or borrower. They usually work in a direct manner with both the bank and the consumer. This way they assist the borrowers qualify to get a mortgage whether a refinance or purchase mortgage. In a nutshell they can be said to be the liaison between these two important entities in a mortgage agreement. The borrower is seen as the retail side and the bank or lender is seen as the wholesale side.
How can they assist you?
Mortgage brokers can help you in a number of ways during the period of processing your mortgage. One of the ways in which they assist mortgage borrowers is by helping them shop for the lowest and best mortgage rates that are available. They do this after all the mortgage paperwork is done and on the borrower’s behalf. This forms one of the biggest advantages of having a mortgage broker. They are helpful as they have the ability of shopping with numerous lenders and banks in a simultaneous manner to find the best rates. They will assist you land the best or even lowest mortgage rates available and also the best program for a loan.
If you as the borrower usually use the services of a conventional retail bank then the bank’s loan officer will only be able to offer you loan programs and mortgage rates from only their bank. This clearly limits you from exploring the other better options that are out there to avoid applying for mortgage more than just once. Mortgage brokers will make this possible on your behalf as they have access to as many banks and lenders as their approvals allow them. In order to get the best and also lowest rates ensure that you get as many quotes from your mortgage broker as possible so as to have more options.
Mortgage brokers assume another function of acting as the loan guide to borrowers. This is often brought about by their working closely together with the borrower on every step of the way before the deal is closed. In some cases these brokers are often more available than even the loan officers in banks. This is a result of them working with only a few borrowers on a personal level. This forms another advantage of working with these brokers as opposed to the loan representatives of retail banks. In addition, if your loan application is declined, the mortgage broker will find you another bank. This is a great relief as it does not mean the end of the road for you like in the instance of borrowing from a retail bank.
How do Mortgage Brokers Operate?
They start their operations once a borrower contacts them with a view of working with them. The broker then proceeds to gather some important information from the borrower. The information so collected entails the borrower’s income, employment documentation, assets and their credit report. This information is important as it is used to assess whether the borrower has the ability to get financing from the bank or money lender. Retail banks also collect the same pieces of information from potential borrowers.
After getting all these important details, the mortgage broker goes ahead and determines what would work best in the case of the borrower in question. This could include the setting of a loan amount that is appropriate; determine the ideal loan type to a borrower and loan-to-value. It is possible for the borrower to determine all the above on their own but the mortgage broker is usually in the picture to help.
After everything is ironed out then the next step is for the mortgage broker to submit the loan application to any of the lenders or banks they work with in order for it to be approved. During this period, the broker maintains a constant communication between the bank and also the borrower. This is just to ensure that everything goes on in a smooth manner.
How are they paid?
Mortgage brokers usually make their money by either charging the borrowers broker fees or a loan origination fee. They could also offer to the borrower a no cost loan which utilizes a lender credit. This ultimately raises the interest rate of the borrower while eliminating out-of-pocket costs. It is important for borrowers to understand these two payment options and choose the one they are comfortable with before taking any further steps.