When buying a house, especially as a first-time buyer, there is a huge chance that you might make regrettable decisions in the absence of experienced guides. Home purchases are quite expensive and should be done with help from an experienced mortgage broker in Perth. If you are planning on buying a home and applying for a home loan, mortgage brokers can help you in a lot of ways. This article goes over who a mortgage broker is and some of the advantages you stand to gain from working with a broker.
What is a Mortgage Broker?
Mortgage brokers are financial professionals who give advice and guide interested home loan applicants through the process of home purchases. These experienced professionals offer advice that helps in planning and effectively achieving home purchase goals. Mortgage brokers often have years of experience dealing with all kinds of mortgage loans and use this experience to guide clients based on their financial standing and personal goals.
Although it has become increasingly easier for first-time homebuyers to get the needed information about homeownership through a simple internet search, working with a mortgage broker guarantees personalized advice. If you are wondering what a mortgage broker can do for you, below are some.
Mortgage Brokers Help Clients Build the Perfect Home-Loan Application
One of the preliminary steps you’ll take when planning on buying a home is to apply for a home loan. Home loans have become competitive and many applicants are getting rejected by the day. Working with a mortgage broker gives you an edge as there is a higher chance of approval. Mortgage brokers understand what works and what doesn’t; they use this information to plan your mortgage application and position it for approval.
In a bid to craft the perfect home loan application for you, you’ll get help in the following ways.
1. Proving Your Financial Capacity to Service the Home Loan
Lenders are more interested in approving home loan requests submitted by applicants with the financial wherewithal to repay the loans. The chances of getting approved without adequate financial backing or income source are relatively low. Your mortgage broker can advise you on this and help you make the right decisions.
2. Showing a Stable Source of Income
Lenders are interested in low-risk clients who have a stable and growing source of income. You are more likely to qualify for a home loan if you can show that you are employed and with a steady income source that can afford the loan. Your mortgage broker can break things down into easy-to-understand and straightforward bits so you can make the best decisions.
3. Check Home Loan Application Documents for Mistakes
Simple mistakes are common on serious documents like this. Many applicants make mistakes when filling in their financial information or basic identity information. Mortgage brokers are familiar with this and offer a second pair of eyes to pick and correct those mistakes.
4. Mortgage Brokers Help with Tailored Mortgage Solutions
Mortgage loans have become more flexible today than they were ten years ago. Mortgage brokers are familiar with the flexibility and offer each client a chance to customize their loan to meet their specific needs. The customization feature allows applicants to shed some financial weight common to packaged home loans. If you are working with a mortgage broker, some of the common home-loan features you may enjoy include:
- Redraw Facilities – If you are self-employed or prone to paying more than your monthly repayment, your mortgage broker may introduce this feature to help you pay more than the agreed monthly dues and access it whenever you are in a financial fix. This feature serves as a bank that stores up the extra payments and makes them available when needed.
- Offset Accounts – If you have a significant amount of money stashed in your savings, your mortgage broker can help you set up offset accounts that offer high interest and are linked to your home loan. In this case, your savings are held against your home loan balance, and the interest rate is applied to the difference between both accounts.
Brokers Help You Get Your Dream Home
One of the biggest advantages of working with a mortgage broker is the peace of mind and satisfaction that comes with owning your dream home. Mortgage brokers are familiar with the many ways to help you achieve your homeownership dream. They can assist you in organizing your documents, especially the financial side, help you avoid costly mistakes that can derail you, and also guide you through the purchase process. They act on your behalf when meeting with the lender and can also represent you during the settlement process.
- Next you can read: What Do I Need to Know Before Buying My First Home?