How to Choose a Good Mortgage Broker?

How to Choose a Good Mortgage Broker?

Mortgage Broker. They have one of the most important roles in your property journey, so it’s important you pick right. But how?

Once again, YPI is here to assist you. Help you, pick the right mortgage broker. They can be such a powerful asset to have under your belt. They’ll have a great influence on your financial life. So how do you choose? Easy.

Trust your Gut Feeling

Sometimes your gut is right. So if they rub you the wrong way, say something a little bit iffy, but you can’t put your finger on, reconsider. The best thing is, you don’t pay anything to these brokers, so make sure you shop around a bit. Chat with a few different brokers, and see which one feels more comfortable.

Trust your mates’ recommendations

Don’t blindly follow the recommendation of your friends, but keep it in the back of your mind. If they’ve chosen a particular broker for numerous transactions, may be worth your while considering them, but don’t just follow it. Interview them like you would normal, and make sure all the boxes are ticked.

Check their Memberships

Brokers belong to different bodies within their industry. Check out where they align with. For example, a body like the Finance Brokers Association of Australia (FBAA) have stringent checks and criteria for their brokers (credit reports, police checks etc). Many of these organisations do these checks annually.

Confirm their Qualifications

It shouldn’t happen in this day and age, but make sure they are qualified. Make sure they hold an Australian Credit License or Credit Representative License. Also, much like the previous point, confirm their FBAA and MFAA memberships.

Make sure the understand you

You’ll want to be sure they know your needs, and can understand your circumstance. For them to best structure your finances and your transactions, make sure they know your rationale, the background, your situation, family and financial, so they can best tailor your package. No point have an account that favors investors, when you will be an owner occupier.

Make sure to ask them questions

Make sure you are aware of what they are doing, before and after the process. Ask to be kept updated with the process, the stages, what will happen etc. They will usually have no issue simplifying the stages and explain it all to you, especially if it is your first loan.

A broker has access to a range of products from a range of lenders, banks and institutions, so its well worth being aware which ones they are comparing and from which lenders.

Check out some testimonials

Ask the broker for some testimonials to see how good they are. Take them with a pinch of salt, as they can easily just choose the good ones, but if they don’t compile them, it’s an alarm bell.

Read between the lines

If they keep cancelling on you, or miss appointments, alarm bells must ring. You want to be relatively important to them, so that they take you seriously and look after your transaction well. If they miss appointments, cancel or not take you seriously, they won’t be submitting a strong case for you to various lenders.

Author

Michael Turner is a Property Development and Analytics Specialist operating in Sydney’s Growth Centres and corridors. He is a Director of YPI, along with several roles at property development firms and agencies. He can often be heard on various radio mediums talking about Football and Property. You can find him on Twitter @mturnerypi or email him directly at m.turner@youngpropertyinvestor.com

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