Mortgage brokers are utilized by the wholesale lenders as their loan officers. The broker gets a lower rate from the lender and then the broker will add onto that rate his fee. This usually adds up to close to what you would have received if you had gone directly to a mortgage banker unless the lender has added on a high compensation for himself. An advantage of using a mortgage broker is that some of the most highly qualified loan officers in the business work for mortgage brokers. But, this is not always the case because mortgages brokers also tend to hire new brokers who are getting their experience working for the mortgage broker company.

So, there is always a chance that you may get a new broker just entering the business. This could cause you some difficulty if there is something problematic about your property or your financial situation and the new guy hasn’t come across that situation before. Where an experienced mortgage broker probably would know exactly what to do in most situations, an inexperienced one may not. You must be very careful when choosing your broker and try to get an experienced one. Another thing to look out for is the greedy loan officer, and there are unscrupulous characters in the mortgage business just like anywhere else. They may try to put one over on you by charging you a much higher fee for their services than an honest loan officer would. It is very important for you to shop around and be sure to ask about fees and costs of services rendered to you.

Addison Holmes is really into everything about homes, mortgages, loans, and the statistics that come along with them. He wants to show and inform everyone of his wide array of information to help people get the best possible deals, rates, tips, and more. If you are looking for more info, visit bad credit remortgage or remortgage services to find everything else you need to know about these topics.

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Assess your needs

A mortgage broker takes the time to discuss your needs and circumstances with you. This gives the broker the opportunity to determine which type of home loan is most suitable depending on your current needs and financial circumstances.

As part of the process, you will need to provide documents to support your identity and financial situation. This includes a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, pay-slips, any outstanding loans, statements, etc. Your mortgage broker will advise you of the relevant documents that you will need to bring with you to your meeting to facilitate this process.

Once your mortgage broker has a clear understanding of your financial situation and goals, they will discuss the various home loan products available. They will provide you with home loan comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.

Find a suitable home loan for your situation

Your mortgage broker will search their database containing hundreds of home loan products from their panel of approved lenders. This will include major banks, smaller banks and other lenders. This database is constantly updated and has details of the latest deals. Sometimes, they can have access to some exclusive mortgage loan products which are not available elsewhere. The mortgage broker will then recommend a product or products, which suit your needs. You should also be provided with a copy of the mortgage lenders comparison rate schedule. Comparison rates include both the interest rate and fees and charges relating to a loan and are a tool to help you identify the true cost of a loan.

Manage the process

If you wish to proceed, the mortgage broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your mortgage loan application and the on-going communication between all parties until your home loan is approved and settled. Your Australian mortgage broker is also required to inform you of their complaints process. This is called an Internal Dispute Resolution procedure and all members of the MFAA (Mortgage & Finance Association of Australia), COSL (Credit Ombudsman Service Limited) and BFSO (Banking and Financial Services Ombudsman) have requirements in this regard.

Provide advice at every step

There are many steps in the mortgage loan process and your mortgage consultant will help you from your initial steps, such as getting pre-approval (where your loan is “approved” based on certain conditions such as loan value) right through to possible refinancing at a later stage.

Speak to an experienced mortgage broker in Australia today to find out how they can help you with your home loan. With access to over 800 home loans and mortgage loan products, a mortgage broker will do all the research and recommend a mortgage loan to suit your needs. Visit http://www.intellichoice.com.au for more details.

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Bank Vs Broker

Mortgage Broker Pros:

- Signed up with several banks and most times can offer a better rate than the average bank since they can lock rates with whatever bank is buying the market that particular day.
- Have to disclose all fees to borrowers (including what the bank is paying them on whatever rate they have sold borrower on).
- Now, in most states, brokers have to be licensed to solicit borrowers and to be able to have the title of mortgage broker.

Bank Pros:

- Rates set, no “selling” on their end. Rate is what it is.
- Dealing with one institution instead of having to deal with a go between.
- Process is much more streamlined. Additional fees brokers charge not involved.

Now, my cons list is somewhat based on personal views as well as fact. Take that for what it is worth and know that going in.

Cons:

Mortgage Brokers

- Typically commissioned employees whose income depends on a sale. Thus higher rates might typically be sold.
- Usually given a minimum fees requirement by management where they are unable to downsell rate as much as they should be able to.
- Process not as streamlined, no control over banks turn times, etc
- Do not have final say when it comes to ultimately deciding on a loan (appeal process is not easy)

Banks

- Do not have to disclose all fees
- If working for a federally licensed bank, employees do not have to be licensed to sell mortgages (lack of knowledge, expertise in industry could be questioned).

As you can see, in keeping this brief, there are advantages and disadvantages to both. The end result is ultimately up to you, the consumer, on what you are most comfortable with. Now, with anything, I would recommend doing your own research before jumping into a relationship with any one bank or any one broker. Everyone has a person they can probably recommend. “Use my guy, he’s the best!” While that might be the case, and that might give someone a leg up…still always do your research. Your home is your biggest possession and that should not be taken lightly. You are entrusting your biggest asset to potentially a stranger.

If you would like to find out more information, or get in depth information,

Tim Wheeler has a background in wholesale lending as well as mortgage banking and mortgage brokering. He has been successfully involved with several multi-level marketing (MLM’s) companies and has done reviews on several MLM’s that are out there now. His goals now involve helping people make informed decisions and showing them the right way to make financial decisions. To learn more about what Tim does, please visit: http://backtobusinessbasics.com

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