At What Point Do You Need A Mortgage Broker

There are many different financial circumstances in life for which a mortgage broker could be an easy solution.

A mortgage broker is a financial professional who sources and organises finanial loans to meet their clients requirements. Not all mortgage brokers are created equal in the types of products they can source.

You will need to engage a mortgage broker at any point when you are looking at your finance for either expansion, consolidation or restructing purposes.

This article will highlight some things to consider when choosing a mortgage broker and some situations you may consider using a mortgage broker.

What is the Best Time to Use a Mortgage Broker

The best time to use a mortgage broker should be as far out as possible from your expected finanical commitment or change. 

The reason for this, is a good mortgage broker will be able to look at your current financial situation and recommend some minor changes that may or may not greatly assist in how much money you will be able to borrow come your financial commitment or change.

For example, if you are looking to buy a house, and you have 3 credit cards, credit cards are considered a significant expense and will significantly reduce the amount of your borrowing capacity. A broker will be able to give you a small indication about how much extra borrowing capacity you could have if those credit cards did not exist.

Your focus for the short term future would be to pay off your credit cards, removing your credit cards from your account so you look far more appealing for a home loan. Ironicallym once accepted for a home loan, a good home loan package will also include good credit options.

Another example would be around gaining finance for a home whilst you are a busniess owner.

You may find it useful to engage a mortgage broker to understand the time periods of business operations in order for a bank to consider lending you as a business owner against your business for a home purchase.

The final example is around entity structures and purchases through those structures. 

Not all financial institutions, with respect to certain assets, are willing to lend money against trusts or corporate entities. Instead of wasting your time individually going to each bank or other financial institution, a good mortgage broker would be able to narrow down which financial institutions look more favourably to these more complicated loan arrangements.

Does a Mortgage Broker Save You Time?

A mortgage broker has the financial authority to compile and compare a large database of financial lenders against your individual financial situation. They can quickly identify which lenders have the best rates, which lenders have better terms, and which lenders will actually lend you money.

As a result, a good mortgage broker will save you alot of time in finding a lender for your situation.

I mortgage broker gets paid by the financer, not by you, when they find you a financial product that you choose to accept. As a result a good mortgage broker can assist in helping you structure your financial presentation to lenders in order to help improve your best possible financial lending opportunities.

Working with a good mortgage broker who has had experience in getting lending for a wide range of clientele, each with their own individual financial circumstances, will save you a lot of time in learning what needs to be presented.

Not everyone realises the scope of what a mortgage broker has when it comes to lending and lending types. Below is a list of financial services that are good mortgage broker can assist you with.

What Sort of Finance Can a Mortgage Broker Get You?

A mortgage broker can provide you with a wide range of different lending products based upon the type of finance you are needing. These products can include,

  • Home Loan
  • Equity Investment Loans
  • Property Investment Loans
  • Car Loan
  • Credit Card
  • Short Term Bridging Finance
  • Construction Loans
  • Equipment Loans
  • Personal Loans
  • Small Business Loans
  • Commercial Loans
  • Self Managed Super Fund Loans
  • Insurance

Using their vast array of financial products a good mortgage broker can assist you in identifying what product or products would be most suitable for your current goal or circumstance.

Aformentioned, these products can be used should you be considering expanding your business or finanical obligation for asset purchases, consolidate your fianncial obligations into a more managable loan, or to simply refiannce to save you more money and draw out additional equity,

For example, if you are looking to build a house and subdivide the land, there could be two or three different financial products mentioned above that could produce the best overall outcome.

Whats The Difference Between a Mortgage Broker and a Bank?

A bank is a financial institution that could only lend you money based upon their own products.

A mortgage broker has access to a wider variety of lending products that could be from multiple banks, individual lenders, or other lending organisations. 

Within Australia there are different aggregators that group a wide array of finance options. These aggregators help mortgage brokers filter through a huge number of different finance options that may or may not suit their clients needs.

Please note that with respect to aggregaters, not all products will be visible at all times, and not all known options will be viewable or part of that aggregation network.

That being said, understanding your unique financial situation to identify how best to represent you to certain lenders to achieve finance, is a skillset that successful mortgage brokers provide. Leveraging this skillset will allow you to gain greater access to finaical products.

In summary, a mortgage broker should be engaged as soon as you feel you wish to pursue a certain financial commitment. This will allow you and the mortgage broker to work on a financial strategy to help achieve your financial goals. These goals could be anywhere from 6 months, a year or longer down the line.

With a mortgage brokers financial understandings on what financial services are looking for whilst having a large database of aggregation financial products, a good mortgage broker is a good asset to have when helping you find a home.

Another asset for your team in finding a home can be your local Buyers Agent or Renters agent. Please select to learn more.

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