Some things simply cannot be rushed or done on one’s own — and buying a house is counted among these things. It’s not as simple as picking something you want off a catalogue and handing over the cash to pay for your purchase. A house is a high-valuetransaction; it’s where you and your family will be residing for the long term, and it can be passed down from generation to generation. Choosing the right house should be done meticulously, with much planning and comparing to find the best property for your needs.
But before you can finally purchase a home, you need to have sufficient financial resources. In this regard, there are two options you can choose from to assist you in obtaining the right home loan: a loan officer at your local bank, or a dedicated mortgage broker. Melbourne financial experts weigh in on the activities of the two and help home buyers select the best provider of assistance for such an important purchasing decision.
How can a direct lender like a bank help?
Basically, a private banker or a loan officer of a financial institution serves to help you get the money for your home loan. This individual coordinates with valuersand the applicants for the loan to perform tasks such as evaluating the property in question, collecting important financial information and going through the steps of the mortgage process. He then presents the loan applicant with the loan options offered by the financial institution that fit their specific needs.
However, a banker receives a salary from the institution he belongs to. As an employee, he can only suggest and make loans from that organisation and nowhere else, and his primary function is to see to the proper facilitation of the loan as well as to ensure that the applicant is fully qualified to receive the loan.
Other limitations include the lack of capability to offer you a loan that suits your unique and specific needs. Everyone’s financial circumstances are different and sometimes, you may find yourself in a tight position where one banker might deem that you are not able to service the loan. But is that your only solution? Does that mean your dream of buying a property is forever gone? Absolutely not. There are other financial institutions out there that might look further ahead and come out with a loan structure that caters for any hiccup moments.
What advantages can you expect from hiring a mortgage broker’s services?
A mortgage broker does not work for any one specific financial institution. He works as a middleman that brings a choice of loan products and loan applicants together.
The broker will work with the borrower to determine their needs, and then scout from among the different lenders (they could be a mix of banks, credit unions, savings and loan associations, and others) he connects with to find a solution that fits those needs.
A broker is paid through commissions from the lender, and hence, generally does not cost anything to the borrower he is assisting. His focus lies more on serving the home buyer’s best interests rather than a financial institution’s goal of providing a loan to the right candidate.
If you choose to secure a loan with the help of a broker, you may find that he is able to find loan opportunities for you that say one bank would typically refuse. He may also be able to find a lender in another location, creating more opportunities for you to secure the loan you need.
Before you decide where to seek help in securing a home loan, it’s best to make a careful study of the pros and cons of each to help you get on your way to successfully closing that deal — and finally buying that house you’ve been eyeing.
About the author:
Oliver Finney is an enthusiast of the real estate industry who loves to continuously learn and share knowledge as well about the vast and comprehensive world of the real estate business, off and online. He has first realized his passion for real estate at the age of 18 after attending an auction. Since then, he has continued to be an avid real estate enthusiast and has recently made the final step to earning his real estate license. Now, he visits sites like http://empowerwealth.com.au/ to further boost his knowledge on this industry.