Buying your first home is a process that requires the expertise of reputable Melbourne mortgage brokers. This is a lifetime decision that must be well-thought-out lest you end up with a financial burden you are unable to relinquish. Home loan financing is a complex process where it is easy to get ripped or mess up your finances for a very long time. To avoid falling victim to bad decisions, you should take your time to research and settle on the best broker for a smooth and uneventful experience.
The worst thing that can happen when borrowing to purchase a home is to end up with greedy home loan brokers Melbourne only motivated by their hunger for commissions. These types do not care about you. You risk taking a higher loan than you will ever be able to pay when you choose to work with them. However, there are many reputable brokers that can walk you through these turbulent waters of homeownership and ensure that you end up with the right home. Here are some of the things you need to look out for in the best brokers.
1. Read Their Customers’ Reviews
As a first-time homebuyer, you might not understand the best finance brokers in Melbourne. Therefore, the only way you will get an idea of who are the players in the industry, and which ones are the best is by going through their online reviews. Reading what other borrowers have to say about their services will give you an idea of whether they are trustworthy or not. The best sources for these reviews can be their website, Google Reviews, Facebook, and other review websites.
It is however critical that you be cautious when reading these reviews to weed out the fake ones. There are some cunning brokers who post their own reviews to water down any negative reviews. These are easy to spot; they appear too good to be true. You can then shortlist the best five or ten and proceed to learn more about their practices.
2. Do They Have The Right Credentials?
Mortgage, just like any other industry, is highly regulated to weed out fakes. Find out if they do have the practicing license and are members of the Mortgage and Finance Association of Australia. This shows that they adhere to the set industry regulations.
A first-time homebuyer will need the assurance that in case there are any challenges, there is someone who can intervene. Non-members of professional bodies should be flagged as untrustworthy because they might have been kicked out at some point due to their bad practices. This information is usually available on their websites, but you can always ask just to be sure.
3. Be Clear About Your Needs
It is always important to clearly define your needs before engaging a loan broker. Be crystal clear about what you need so that you can be guided from there. Note that there are numerous home loan products, each with different features, fees, and interest rates. When a broker understands your requirements, then you can get proper guidance on the best product for the specific need.
They will need to understand your financial situation and borrowing needs. Be careful with this because some might end up being interested in your wallet as opposed to your welfare and will likely recommend solutions that might not work for you.
4. Find Out What Is Their Competitive Edge
Why would you choose to use Melbourne mortgage brokers while banks offer similar products? This is a tricky question that will allow them to explain themselves, especially what their specialization is. Their response should explain their partnerships with lenders, understanding the latest industry developments that you can take advantage of, an internal credit team to carefully analyze your application to increase the success rate, and the ability to negotiate discounts with lenders to enable you to save a few extra bucks.
5. Experience Matters
Finance is an interesting sector where proper knowledge can only be realized through experience. An in-depth industry experience is necessary for this industry. Finance brokers in Melbourne with substantial experience are best placed to advise you on the best course of action as opposed to the relatively new ones.
An experienced broker will advise on the current lending policies by different lenders and can even know the probability of your application being accepted. The longer a broker has been in the industry will boost your confidence that they know what they are doing. There should be no room for trial and error in this case.
6. Find Out About Their Panel Of Lenders
One thing that a first-time home buyer needs to understand is that brokers act as a link between the borrower and the real lenders. Brokers have a restricted list of trusted lenders with which they work. They cannot with just any lender.
The most ideal number of lenders on a reliable broker’s panel should be about 20, the more the better. You need to be concerned if the panel is relatively small because that might mean that the options are limited. The larger the panel, the more options to choose from.
7. Enquire About Mortgage Features
You need to understand what other additional features come with the mortgage loan. There is no need to opt-in to some features that you will not be able to use. For example, will your mortgage be insured? If yes, then you can use a lender’s mortgage insurance (MLI) calculator to know how much it is going to cost. Find out if there are extra repayments, offsets accounts, and redraw facilities. All these are important as they will inform your choices in the long run.
8. What Is The Ideal Turnaround Time?
How fast can your application be processed? The speed at which the finance brokers Melbourne can turn around your application will be paramount in determining your homeownership journey. Brokerage firms with enough personnel are likely to process the applications faster than smaller ones with just a few hands to work on your documentation. While at it, be careful with those brokers who promise impractical turnaround times.
9. Application Vs. Rejection Rate
On average, the mortgage loan rejection rate in Australia currently stands at over 40%. When applying for a mortgage, the last thing you want is for it to be rejected. A reputable loan broker should have a higher approval rate than the average rejection rate. They do not take chances and take time to weigh between the borrower’s needs and the lender’s approval criteria.
10. Customer Support
There are many home loans such as guarantor home loan that requires one to get guarantors for the facility. They should know which one suits you best. How home loan brokers Melbourne treat their customers says a lot about their professionalism. It has everything to do with how responsive they are to your inquiries and how they make you feel general. You just have to be treated right, nothing less.
There are many Melbourne mortgage brokers one can choose from, but you must never be in a rush to work with the first one you come across. Take your time to consider the above factors for the best experience as you seek to purchase your first home.