When it comes to buying a house, many people meet a lot of problems and most of these problems are due to the fact that they probably only ever buy one house in their lifetime and so are unfamiliar with the process. They are unfamiliar with many of the terminologies that lenders may use, they are unfamiliar with what amounts lenders may be prepared to grant, given the buyer’s financial status and they are unfamiliar with which lending establishment they should visit first. A solution to the vast majority of these problems is to retain the services of a mortgage broker. A Mortgage broker solution is good because the with the mortgage broker’s experience, they can give advice as to how much you can expect to be granted a loan for, who is most likely to approve that loan and they can also explain all of the different terminologies used by the lenders, ensuring that you do not agree to something that you do not understand or cannot meet.
In many countries, a mortgage broker may not be used due to the fees they charge the buyer but in Australia that is not the buyer’s concern as all the broker’s fees will be met by the lender and the lender does not even pass the extra expense onto the buyer, they absorb it as an expense essential to gain extra business. As buyer’s need not concern themselves with the expense, a mortgage broker solution has become very popular in Australia and it is now estimated that 50% of loans in Australia are orchestrated through the use of a broker’s services.
A buyer will of course have to provide a broker with their financial details but having done that, the broker will estimate what price range the buyer can afford and then go onto find a house that meets the buyer’s requirements and is within that price range. Using their experience, the broker will then approach several lender s as necessary in order to find one that will approve the buyer’s loan request. As the broker knows all the lenders, they know which ones to visit first and thereby save a lot of time and disappointments. The broker should be able to obtain a pre-approval of the loan on the buyer’s behalf and so it is only when that has been obtained that a buyer will have to even visit a lender. The broker will have already gone over all the small print and understanding all the different terminologies used, will be able to fully explain them to the buyer before the buyer meets the lender to sign the agreement.
Obviously then, using the services of a mortgage broker anywhere in the world can save a buyer a lot of stress but, in Australia where there is no added expense for the buyer to do so, there is even less stress and no reason as to why those services should not be used, even for smaller loans like personal or business loans.