A mortgage broker Invercargill is a professional that searches for the best available deal for a mortgage for you instead of simply going with one bank for all of your needs. More often than not, they are small businesses that work to get you a good deal from the banks. If you choose to work with a mortgage broker, there are four questions that you need to ask.
Ask about their experience
The market for a mortgage has changed a lot over the past few years, and you may feel most comfortable with a mortgage broker Invercargill who have experienced these changes and knows what he or she is doing. While someone with less experience can still be just as helpful if you are trying to accomplish something that is complicated or requires a lot of work. Don’t be afraid to interview them a little before making a commitment.
Ask for a reference
This goes hand in hand with experience. If the broker doesn’t have much experience to speak of, a reference might speak volumes for his or her ability. You want someone who knows what they are doing, and other people are more likely to be genuine and honest with you. Remember that you are hiring them, so it is important that mortgage broker Invercargill sounds like a good choice to you as well!
Ask about pricing
Pay for a mortgage broker comes in a variety of ways. Your potential broker should be upfront with you about any fees and costs that you will incur. They should be honest and do their best to clearly explain how they will be compensated. It can be complicated for someone who isn’t familiar with the field, but they should always try to explain so that you know where your money is going. Always double-check your statements to make sure the costs match up.
A mortgage broker like APM Finance can help you easily understand this. With your loan, you will be paying a higher interest rate and higher fees in order to get your loan approved. They will look over your application and know pretty quickly how much effort is needed in order to get your application/loan approved and through their system.
Not every mortgage broker will handle loans that will be difficult; most of them prefer handling ‘A’ type clients. Why? It’s easier, the commission may be lower but there is not as much hassle which allows more volume, overall.
But why would this type of client use a mortgage broker over a bank?
There are a number of reasons why. For starters:
This client has not processed a loan through a bank and has no idea of the financial benefits associated with using a bank over a broker. The broker may be running a promotion to bring in new business or a client’s realtor recommended the broker.
If the mortgage broker has experience and several years in the business, they have built up a regular client base which offers them referrals from previous customers.
It is not the easiest process when buying a home, it can be stressful, competent, and using a service to handle the loan may be worth it to you.
This is something you should strongly consider when you shop for a loan.
A mortgage broker will be your only option if:
• You are self-employed and have a hard time verifying your income.
• Have credit that is not very desirable
• If you’ve recently changed career paths/jobs
• Your (DTI) Debit-to-income ratio is high
Mortgage brokers Invercargill can usually get a loan approved even when Banks don’t want to be bothered with it. You pay more fees and are subject to higher interest rates when you use a broker but in the end, the benefit outweighs the con.
As with any professional that handles your monetary assets, you should always be cautious and do your research. Make sure that you think you are making the best decision for you and your bank account. Be sure to ask your mortgage broker these four questions in order to ensure that you are in good hands.