Why Should I Use a Mortgage Broker When Applying For A Home Loan

Statistics show that mortgage brokers are responsible for writing more than half of all the home loans approved in Australia. In short, being a mortgage broker means being part of a multi-billion-dollar industry.

It is also obvious why people rely on mortgage brokers to find the loans that fit them the best. Looking for lenders and working out which offer is the best can be confusing, not to mention time-consuming as well.

In short, it is much easier for you to just hire a mortgage broker to do all the hard work for you – and for a good reason. We’ll explain everything you need to know and also have another guide warning you on 4 crucial factors to consider when looking for a mortgage broker.

What Does a Mortgage Broker Do?

As mentioned above, a mortgage broker can be seen as a financial adviser that will help you find the best loan for your needs. However, the main question is still there – what do they do exactly and how they help you?

Well, one of their first jobs is to look into your financial affairs, figure out your creditworthiness, and then help you determine the exact type of loan that will fit you the best.

Then, they introduce you to the variety of home loans that they have available from the panel of lenders they act for. Keep in mind that mortgage brokers offer products from several financial institutions, but not always from all of the lenders on the market. At Highline lending we are supported by over 60 financial institutions!

Naturally, as they have access to so many resources, they will most certainly have the loan that you need available. On top of that, they will also discuss the goals and options that you have and will help you deal with the paperwork.

Why Should You Use a Mortgage Broker?

Obviously, you should use a mortgage broker when you think that you are not versed enough in matters regarding finance or mortgaging. For example, you may know how loans work – but you may not know how to pick one that will place you in a favorable position.

They help you choose the right lender or bank

A denial from a lender doesn’t necessarily translate into a lost opportunity. Many individuals are under the impression that lenders follow the same stringent rules and policies. When they’re turned down, they often assume that they’re going to be denied by banks and other financial institutions as well.

While many lenders strictly follow mortgage lending and real estate guidelines, their policies do vary. This means that you can shop around to look for other lending options. Don’t have the time? No problem—a mortgage broker can do the job for you.

With the knowledge and expertise, your mortgage broker can match you up with a lender whose policies best suit your circumstances. 

They guide you to loans that you qualify for

Every loan application gets registered on your active credit file. This means that every time you apply for a loan, it is recorded on your credit file. A build-up of inquiries on your credit file is a big no-no as they can have negative repercussions on your ability to get credit in the future.

Lenders do not want serial applicants, so it’s better to have your broker match you up with a suitable product the first time so that you can avoid this trap. Besides, your mortgage broker will set you up for a better chance of getting approval.

They aid you in improving your credit and sorting through your paperwork

The services of a mortgage broker go beyond setting you up with the right lender. Apart from that, he or she can educate you on how to improve your chances for loan approval. As your mortgage broker has access to your financial information, he or she will provide you with feedback and recommendations on how to improve your credit score.

Apart from this, your mortgage broker is also an expert in low-doc loans. He or she can review all your paperwork to ensure the whole application process won’t be held up. A good mortgage broker will tell you exactly what paperwork you need and how to rise above any obstacles in the criteria set by the lender.

They lead you to the best deal

Choosing to seek the professional help of a mortgage broker instead of shopping around for a lender on your own can mean a world of difference in your financing experience. A mortgage broker has the knowledge, skills, and expertise in the real estate industry. They are familiar with the lenders and can identify the one that is most suitable for your loan application.

Working with a mortgage broker will not only give you all the chance in the world to get approval but make it possible for you to secure a loan with a much lower interest rate, lower monthly contractual payments, and bonus features. The better deal will potentially save you thousands of dollars over the course of your loan.

Main Advantages of Using a Mortgage Broker

1. As mentioned above, if you have little to no knowledge in terms of the mortgage or finance industry, then a mortgage broker can very well be an invaluable resource for your endeavors in the property market. On top of that, they are also great if you have a hard time understanding your own financial affairs.

2. It is well known that a mortgage broker can find you a mortgage that’s way better for your individual affairs and situation than what you would have found.

3. Assessing home loans requires a lot of free time. If you don’t have enough time, you can rely on a mortgage broker to do the extensive research required – they will analyse the home loan products that are available and then consult with you.

Top Reasons for Hiring a Mortgage Broker

They Teach You How to Buy – an experienced mortgage broker will guide you through the whole home buying process, including application, compiling the documents, liaising with your solicitor, and so on.

Their Services Are Usually Free – unless you borrow a small amount or have complex situations on your hands, most brokers are usually free. As they are paid by lenders to find them customers, they have no need to charge you.

They Have Experience You Can Benefit From – if you choose to handle your first home loan with a mortgage broker, then you will most certainly learn from their experience and actions. These brokers know how to get your application approved, so it goes without saying that you will learn a thing or two, for future loans.

They Can Make the Application Process Faster – given that mortgage brokers have good relationships with the lenders they work for, they can actually speed up your application, making it two to three days faster than usual.

They Specialise in Different Types of Loans – there are also specialist mortgage brokers, who are able to handle special or complex requirements without any issue. For example, there are brokers that specialise in construction loans, property investing, and even commercial properties.

The Bottom Line

Now you see that a mortgage broker can be a good addition to the team responsible for getting you your home loan and, ultimately, your home. As mentioned above, depending on your knowledge and experience, they can prove to be invaluable to this whole experience.

However, you must remember that you have to carefully question and choose mortgage brokers. After all, you don’t want one that works with only three to four lenders and comes at you with little to no home loan products.

On the other hand, if you need help finding the best home loan available, then you can contact us. Our team of experts will guide you through the entire process of finding a loan – making sure that you get what fits your needs the best. We work with over 60 lenders and set a standard in the finance industry making sure you a provided with a world class level of service and get your finances approved with the most suitable bank.

If you’re looking for a mortgage broker in Sydney, get in touch with us today to see how we can help! We are always ready to provide you with our assistance!

To learn more about us, feel free to view our story or contact us on on 02 9121 6247/ submit your scenario online.