All credit to the internet now we can find and compare mortgages online. Every day we come across advertisements from several reputable banks offering loans. People find it bizarre to go to a mortgage broker and pay him extra fees to do the work they can do themselves. But let us tell you, they can do what you can’t do for yourself. A qualified and competent broker can shepherd you through all the legwork thus saving your time and energy. He will take quotes from different credit providers; negotiate the lowest possible rates for you and put in the efforts to arrange best available deal for you. At times when credit providers tighten their rules, mortgage brokers jump in to save your day.
Many people, especially the first time buyers find it hard to trust mortgage brokers and end up going directly to the lenders. If you’re not feeling confident about your choice, here are a few questions you can ask the mortgage brokers Melbourne you’re planning to deal with. Their answers will give you a clearer image of their standing.
How long have they been in this industry?
Even though a newbie can also efficiently negotiate a deal for his clients, there are some tricky cases in which experience plays an important role. Have a poor credit record? A newbie might not be able to get you out of trouble. Go for a broker who has been in mortgage industry for at least three years.
Ask them to provide you with their client history.
To get an idea about a broker’s reputation the best way is to demand their client history. Ask them to give you the contact information of their recent clients. Call them, ask them how they were treated and would the prefer working with the same broker again.
In what ways are they compensated?
There are two main ways through which brokers make money. The first is through commission they receive from lenders. The second way is yield spread premiums. It is a notorious technique to earn moneyas it ends up hurting the borrowers. Want to know it works? Here’s how: A borrower might be eligible for a loan at 5 percent interest rate but the broker will advise him to opt for the loan with 8 percent interest rate. The lender compensates the broker with thousands of dollars for signing you up for the loan at a higher rate.
What‘s their technique of handling rate locks?
Some brokers play nasty tricks with you when it comes to rate locks. Here’s how: You call him to lock a specific rate at a specific date and he tells that it’s done. But clandestinely, he doesn’t lock it expecting that the rate would drop and he will be able to make some profit. If the rate falls, the broker fixes it that lower rate. When you the higher rate, the difference between the actual rate and the one for which you paid goes in his pocket.
Looking for the most reliable mortgage brokers Melbourne?
If you don’t want to waste time comparing several brokers, just opt for mortgage brokers.Get in touch with them and get your hands on your dream house. With their vast network of lenders and flexible payment procedures, mortgage brokers offers the best available mortgage. You may go through their client’santiquity to guarantee why mortagebrokers247.com.au is primary choice of everyone.