When shopping for a loan to finally purchase the home of your dreams, it helps to have a reputable dealer on your side. One that looks out for you and endeavors to get you the best package suited for your needs, rather than one that is simply looking for another sale in pursuit of a big fat commission. Wondering how to select a mortgage broker? This article breaks down what you need to know and do in order to get a dedicated, caring professional on your case…
Take your time and shop around
The market for mortgage brokers such as 1300 Home Loan is a saturated one, so don’t be in a rush to pick the first one that pops up in a Google search. Ask your friends and colleagues for the names of three brokers that they have had a great buying experience with, then arrange to meet with each of them face to face.
This is to make sure that they have proper accreditation (e.g. National Consumer Credit Protection Act, Certificate IV, Credit Ombudsman Service Ltd, etc), and an appropriate educational background (e.g. Diploma in Financial Services Mortgage Broking).
You should also test their knowledge of the market by asking them about their prognosis for home prices and interest rates in the near to mid term, their opinion on neighborhoods and the economy as it pertains to housing, and so forth.
As they answer your initial inquiries, take notice of their soft skills, as the confidence they project, their overall people skills and patience will tell you if you should proceed to the next step with this professional.
Do the lion’s share of the talking
If things look good with a particular lender after the first meeting, come to the second meeting armed with a laundry list of questions regarding the mortgage products they offer. From the state of their business to the mortgage they hold (or held), most inquiries are fair game as long as they establish that your potential lender is knowledgeable and that their business is in a good financial state.
Once you are satisfied on both counts, ask them to recommend the best product for your needs, and get them to explain why. This is help prevent an unsavory dealer from selling you package that results in enormous financial benefits for them, but massive financial liabilities for you.
Ensure that their answers are free of jargon so that you can understand everything that is being discusses. If certain terms cannot be avoided, have them explain what they mean: it is vital to ensuring that you do not enter into a deal whose terms are disadvantageous to you and your family.
What lenders do they use
Once your potential broker discloses the list of lenders that they use, your next task is to suss out whether they are dependable. Once you have confirmed they are above board, ask your broker why they recommend the lenders that they do. Their answers will you whether any of them are usable for your purposes when seeking a home loan.