Why use a broker over a bank?
Why should you use a broker instead of going straight to a bank? If you need to get finance to buy a home or even an investment property, the deal you choose will make a huge difference to your overall lending costs. This is why it’s worth shopping around and not necessarily being loyal to your current bank or lending institution.
Here’s a rundown on what brokers do and why they are worth using when it comes to procuring a new mortgage or refinancing your current one.
What does a broker do?
A broker has an eye over the entire lending market and is not affiliated with just one lender. Therefore, he or she has the ability to offer you a variety of different options when it comes to getting finance.
Using a broker will also save you an enormous amount of time because you don’t have to search all over the internet to try and work out the best finance deal for your situation.
When you use a broker, you also eliminate the stress of having to work your way through the entire application process. Let’s face it, loan applications can be tedious to go through, especially if you’re not particularly detail-oriented.
But, with a broker, you don’t have to worry about whether you’ve done everything right or whether you might have missed something important. Your broker will guide you through the entire process to ensure that you have the absolute best chance of securing the finance.
Additionally, a broker can often help to find a lender who will work with you if your circumstances differ from the norm. This is perfect for business owners and freelancers who might not have the same type of income and financial proof that a wage or salary earner does.
Plus, a good broker knows all the ins and outs of each lender. This means that the broker understands fully what you’ll need when applying for a mortgage with any particular lender. This gives you a far better chance of being approved.
How does it work?
A broker will go through your entire financial situation to determine your particular needs and how to best set up the perfect loan for you.
The best part is that brokers are paid by the lender when they secure a loan for you, so most brokers will offer their services for free to their clients. For this reason, your broker wants to ensure that you continue to be happy with your finance arrangements. This is why many brokers regularly touch base with their clients to ensure everything is going well.
This kind of ongoing service can be a real asset in ensuring that you remain on a competitive rate for the length of your loan. Similarly, if your circumstances change, your broker can organise a revaluation of your property and reassess your loan to see if there’s a need to refinance to better suit your needs.
Once you have a relationship with a broker, it becomes far easier to access further finance because the broker will already have all of your information. Once again, this will save you heaps of time and you can relax in the knowledge that you have someone looking after your best interests.
How do I find the right broker?
If you’re looking to buy a home either for yourself or as an investment in Neutral Bay or nearby and you need to arrange finance, feel free to get in touch and we can give you a list of brokers who you can work with.
