What Are the Benefits of Hiring a Local Mortgage Broker?
Australian banks help thousands of first time home buyers to purchase new properties every year. With fair rates and healthy lending policies, most adults will be able to consider borrowing money from these types of lenders – but not all will be successful. Some might find themselves rejected if a bank feels that the applicant won’t be able to keep up with their repayments, whilst others may reject candidates if they can’t make sense of their financial status.
Many applicants turn to the services offered by brokers as a result of the above concerns, and for good reason. These financial experts are well-versed at dealing with banks, as not only can they offer an ocean of information relating to mortgages and applications; they can also help with the processes involved as well.
So, what exactly are the benefits of hiring a mortgage broker, as opposed to going it alone?
One of the first things that you’ll notice when taking on the services of a good local loan broker, is that they will have access to direct channels of correspondence with potential lenders. This may be down to the fact that they might have developed relationships, or it might relate to the close proximity in which they work with banks.
In either event, a borrower will certainly stand to benefit from this close working relationship. The first advantage of this factor is that applications can be taken straight to a source for review. The second is that this direct approach will allow the potential borrower to receive a quicker answer. Finally, there are some lenders that may offer unique deals to brokers that affiliate for them – and this could provide the applicant with an even better deal than they could have imagined originally.
How about their potential to negotiate?
On top of the aforementioned benefits, there’s another service offered by brokers that has led to them becoming as popular as they are now – and that’s the ability to negotiate terms.
This service applies to those with mortgages, as well as individuals hoping to apply for a new loan. In the first instance a broker will be able to approach a lender on behalf of their client, with the intention of agreeing on new terms that will ensure that the bank receives a return on their investment, whilst making it easier for the borrower to pay back what they originally agreed.
Secondly, if a borrower sees a particular deal that they like the sound of, but they’d prefer it if it had a couple of minor modifications (perhaps relating to repayment frequencies or interest rates), then a broker will be able to negotiate fresh terms with the lender in question. This can be hugely beneficial when it comes to keeping costs as low as possible.
Do brokers just negotiate and approach lenders?
The simple answer to this question is no. Although these financial experts specialise in dealing with banks, they are also ideal when paperwork is in need of organisation, or when mortgage applications will need to be submitted. It’s this versatile nature that makes these specialists so beneficial to a mortgage application. They can fast-track reviews, handle paperwork and compare loans in an efficient manner – and those that rely on their services often experience a far greater chance of being approved for a loan, making mortgage brokers even more appealing. Many brokers work in local suburbs such as Croydon, Ringwood & Mitcham and get to know the local bankers. Again, this makes it easier to get approval.