Buying a home, whether for a primary residence or an investment, is a very big decision.
There are many factors to consider and one of the most important of these is choosing a mortgage broker.
Your broker is a critical partner in the finance process, so finding someone with the right expertise, range of mortgage products, and solid record of performance is not something to take lightly.
Where to look for a mortgage broker Many people aren't sure where to start looking for a mortgage, especially if they haven't bought a home before.
Even if you have bought real estate in the past, your needs have probably changed enough for you to look around for the right broker given your current circumstances.
Some of the best ways to find mortgage brokers include: * Referrals - Ask your friends, family, colleagues, and peers for their recommendations.
You can learn quite a bit about how a broker works with clients just by talking with the person providing the referral.
* Accreditation - Check with the Mortgage & Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA) for a list of accredited members.
Look for brokers who have achieved at minimum a Certificate IV, or even better, a bachelors degree in business or law from university.
* Internet - Search for mortgage brokers via the internet.
You will be able to peruse their web pages and get some idea of whether they are suitable for you and vice-versa.
Some mortgage brokers also publish reports and host seminars relating to finance and property which you can read and attend for free.
This may helpful in determining their expertise and experience.
Once you have compiled a list of potential mortgage brokers you want to consider, it's time to start getting to know each one a bit better.
Getting to know your mortgage broker Your primary interest is to find the broker who has the assortment of products you need, the expertise to make solid suggestions, and the client service skills to fully satisfy your needs throughout the lending process.
There are plenty of mortgage brokers, so it is up to you to find the right one for your preferences and needs.
Set up a "get acquainted" meeting over the telephone or in person with several brokers; most experts recommend speaking with a minimum of two different brokers but not more than four.
This gives you a diverse set of choices to consider without it becoming too overwhelming or confusing.
Keep in mind that you may be able to use any broker in the country despite their physical location.
And technology such as email makes it simple to communicate with your broker effectively without being in the same location.
Ask each broker about the following important considerations: * Experience - What kind of training, certification, and accreditation do they have? Do they own property? Are they property investors? Do they have testimonials from existing clients? * Expertise - What kind of clients do they assist (e.
g.
first home buyers or property investors)? Do they have any knowledge of tax, structuring, and legal issues pertaining to property? * Panel of lenders - Mortgage brokers represent a range of different lenders; this is known as their panel of lenders.
Find out which lenders are on their panels and check to be sure that these lenders are reputable.
Don't get too caught up in the number of lenders on the panel, but look instead for high quality.
* Personality - Your mortgage broker plays a key role in finding the right mortgage product for your needs so it's important that you work together well.
Look for someone who is patient, who can clearly explain all aspects of loan products and loan structure, and who can answer your questions and listen to your concerns.
If you follow these guidelines you are much more likely to connect with a mortgage broker who can provide you the high quality service you want and deserve