When deciding to buy a new home, one of the most stressful aspects is deciding where to apply for a mortgage, as this will likely be one of the largest expenses of your lifetime.
Engaging the services of a mortgage broker in Northern Rivers can alleviate this stress. So firstly, what is a mortgage broker and secondly, how should you go about selecting the right one for you?
What Is A Mortgage Broker?
A mortgage broker acts as an intermediary between an individual seeking a loan and the institutions providing the loan. In the past, banks were the primary provider of loans; however, nowadays, loans are offered by a myriad of other financial institutions.
The mortgage brokers job is to match the individual with the most suitable loan deal in terms of duration, interest rates and fees.
They are well-positioned to do this as they have established relationships with a range of institutions and will be able to negotiate favourable terms to suit your situation.
Referrals And Track Record
Mortgage brokers are regulated by the Australian Securities and Investments Commission (ASIC) to ensure compliance with licencing regulations, responsible lending obligations, and promote the lenders’ best interests.
. You would be well advised to engage with someone who has experience in your area. Get referrals from friends and family who have made recent use of a broker.
Shortlist And Interview
After reviewing the referrals, compile a shortlist of around three candidates. Interview each and ask the following types of questions:
- Describe your experience in the mortgage industry.
- Who are the different lending companies that you work with?
- Based on my information, how likely am I to qualify for a mortgage?
- If unlikely, what can I do to improve my prospects?.
Discuss Fees And Commissions
An important consideration is the fees and commissions that will be applicable. Ask your prospective broker to explain how fees are charged and how commissions are earned. It is vital to select a broker who is transparent to avoid being saddled with unexpected expenses further down the line.
Generally, mortgage brokers do not charge a direct fee for their services. Usually, they are paid by the lending firms for the introduction of business. They earn an upfront commission on the deal and possibly an annual trial fee.
A mortgage broker will be involved in the preparation of all the application documents and guiding you through the entire process from start to finish. This can be particularly useful for a first-time homeowner.
If you are looking for an experienced and trustworthy mortgage broker in Northern Rivers, look no further than ZEP Finance. Contact us today, and we will show you a range of options available on the market.
