Buying a new home is undoubtedly one of the costliest and stressful ventures of your life. That’s why, when you opt for a home loan broker in Melbourne, you need right person by your side. That is what we at HH Finance bring on table. Approaching a mortgage broker can help take the stress out of the entire process.

However, there is plenty of misinformation and misunderstanding about what a mortgage broker does. We will try to figure out the entire work process gradually.

What Is a Mortgage Broker?

A home loan broker is an intermediary between banks/lenders and borrowers. They might work with an individual or a team to secure a suitable home loan for the borrower. They’ll negotiate with the lender on your behalf to get better loan terms, interest rates, and extra facilities.

If you’re in a slightly unusual situation (poor credit history or self-employed), the broker will be able to find lending solutions that you might be unable to source on your own.

What Do Mortgage Brokers Do?

The mortgage broker will gather information about the home buyers and their financial situation before approaching a range of lenders with the application. They will then negotiate in your best interests to get better rates and terms. They also offer advice and explain industry jargon to first home buyers.

How Mortgage Broker Helps You Get a Convenient Lending Option?

Mortgage brokers can save you time and fees on your home loan. As brokers are industry experts, they can connect you with a suitable lender. Their expert advice will help you decide which loan options are the best investment strategy.

Plus, they can recommend local solicitors or real estate agents to help with other aspects. For example, if you speak to a mortgage broker in Sydney, they can put you in touch with other local professionals.

• When Do I Need to Contact a Mortgage Broker?

It’s never too early to speak to a mortgage broker. A good broker will help you establish your borrowing capacity so that you know what loan products are available. Therefore, you will be in a better position to house hunt. This will save a lot of time in the long run. The sooner you begin the application process and receive a written quote, the sooner you will be able to buy your property investment.

• Mortgage Broker or Bank – Which one to choose?

If you’re dealing directly with banks, they will offer higher interest rates with the expectation that you won’t negotiate. While you are free to fight for lower comparison rates, many borrowers do not have the expertise or confidence to seek competitive options. Plus, you might not be aware of ‘nice to haves’ and other additional home loan features.

A mortgage broker will save thousands on interest rates and find the right solution.

• What Can a Mortgage Broker Help Me With?

A mortgage broker can help you secure a loan with better terms. These might include a shorter loan term, lower interest rates, a higher loan amount, reduced fees, or added features like an offset account or redraw facility.

They will search the market to connect you with the right loan to suit your budget. They will also negotiate the loan terms on your behalf to secure better rates. Plus, good brokers offer ongoing mortgage advice throughout the loan term.

What Does a Mortgage Broker Check?

A mortgage broker will check most of the same things as the lender will when you apply for your home loan. The broker wants to make sure that they can find a home loan option suitable for your financial situation. They might run a soft credit check on you. However, they won’t do this without your permission.

They’re likely to check your personal and financial information too. They want to make sure that you have an overall positive credit history.

What Information Do I Need to Provide for a Mortgage Broker?

You will need to share proof of identity, address, your income, and other financial details. The broker will need to see how much you have saved for your deposit and where this money is sourced from. You can usually evidence this with bank statements.

You will also need to share other debts you may have so that they can assess your loan approval chances.

Where Can I Get a Reliable Mortgage Broker in Melbourne?

You can find a mortgage broker by searching online for “mortgage brokers Melbourne”. It’s best to find a local broker as they will have a better understanding of the area you wish to buy your property. They might be able to provide recommendations about the local housing market, solicitors, and real estate agents.

You can get in touch with HH Finance’s mortgage brokers easily online or via phone. One of our experts will be happy to guide you through the application process.