When you first visit a mortgage broker there are some questions that you need to ask. The answers you are given then allow you to decide if the broker is the best for you and your circumstances. If you find that the broker doesn’t answer your questions accurately or that they are poor communicators, then consider seeking out another mortgage broker that you feel more comfortable dealing with.
Five of the most important questions for you to ask when you visit a mortgage broker are as follows:
1. Who pays you?
Most mortgage brokers are paid via lender commission. But, some will ask you to pay a fee for their service. This means that there may be an out of pocket expense for you to pay. You need to know this, before you hire a mortgage broker.
Commissions paid vary from lender-to-lender and there have been questions raised about whether this is ethical or not. While most mortgage brokers act in your best interest regardless of the size of the commission they collect, not all are as ethical. This is why it is vital to ask the broker to disclose commissions that they earn when doing a loan comparison. This will allow you to see any conflicts of interest before making a home loan decision.
2. What lenders are on your panel?
There are hundreds of lenders and thousands of home loan products on the market. But, not all mortgage brokers have access to these. A mortgage broker needs to gain accreditation from a lender to sell their products. When a mortgage broker gains accreditation this lender then joins the broker’s panel of lenders. The more the lenders on the panel, the greater the range of products.
3. Do you have specialities?
If you’re not the average home buyer or investor, then you may need a broker that specialises in a specific area or is experienced at dealing with people just like you. For example, you may be self-employed or seeking to buy multiple investment properties, then knowing what your broker is capable of will help you define if you should deal with them.
4. Do you have a license?
Always ask to see a broker’s license as this ensures they are legal. It will also give you some form of protection if problems occur in the future. A broker should have an Australian Credit License and display this number on their paperwork. You should verify this with the Australian Securities Investment Commission (ASIC) and look for any prior incidences that the broker has encountered. If the broker has a blemished history, then it you need to weigh-up if the broker is ideal for you.
5. How have you secured difficult deals?
Ask the broker about their first-hand experiences. You want to know you’re in good hands if you have a ‘difficult to achieve’ loan. This will allow you to judge how well your broker can manage issues if they’re encountered.
Are you looking for a mortgage broker? If so, then contact eChoice and find the right home loan for YOU today.