Securing a home loan through a Mortgage Broker
Prospective home buyers are using Mortgage Brokers to secure home loans because they anticipate that they will save them money and assist them through the home loan application process. If you decide a Mortgage Broker is for you, you’ll engage with them at a number of key stages throughout the home loan application process and beyond.
Before application
Your Mortgage Broker will consult with you to establish your financial and lifestyle goals, responsibilities and commitments. You may have an idea in your mind of what you want, and the first meeting with a Mortgage Broker can really help you refine this and develop an action plan to make your aspirations a reality.
After reviewing your financial circumstances, your Mortgage Broker can determine your borrowing capacity and they can outline repayment scenarios. They must make reasonable enquiries to check if proposed products are suitable for you. They can also put you in touch with a variety of other complementary service providers, such as financial planners, real estate agents, lawyers and buyers agents, who will also help you achieve your goals, as and when required.
In preparation for a home loan application you will need to supply some supporting documents. Examples of these documentation you will typically provide include personal ID, evidence of your income, proof of savings and details of existing financial obligations. Your Mortgage Broker is required to maintain confidentiality of the information that you provide and only pass it on where necessary to secure your finance or where required by law.
Your Mortgage Broker can also consult with you to explain how features, fees and charges attached to your home loan compare and how they affect the overall amount you will repay on your loan.
Application
Once you’ve consulted with your Mortgage Broker to determine your preferred loan, they will submit your application and documentation to the lender.
Before you seek full home loan application approval, it’s also common to apply for a home loan pre-approval.
By signing a contract on a property prior to securing unconditional approval, you run the risk of forfeiting your purchase deposit if your subsequent loan application is declined. Pre-approval is less onerous than the full home loan application and gives you a good preliminary indication of your borrowing power. Your Mortgage Broker can assist you with applying for a home loan pre-approval as a step to help you determine which property price bracket may best suit you.
Your Mortgage Broker will let you know when your lender has issued an unconditional approval on your home loan application.
Approval and settlement
After your home loan application is approved and settled, your Mortgage Broker will follow up with you to ensure you understand how to pay the loan and to answer any enquiries you might have.
It’s also common for your Mortgage Broker to contact you regularly, offering to check that your home loan still suits your needs. It’s possible, for example, that you might be better off switching from a variable to a fixed interest rate home loan, or switching products for a better deal. Your Mortgage Broker will help you with this decision by maintaining long-term contact.
The more aware you are of the support your Mortgage Broker has to offer in the home loan application process, the better positioned you are to navigate the process comfortably and successfully.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.