- Research and apply directly to your chosen mortgage lender, or
- Engage a Mortgage Broker to do the legwork and the paperwork for you.
A lot of people ask me which is better, sourcing a home loan yourself or using a broker,
Some say that if you are happy with your bank as a mortgage lender there is no reason why a direct loan application with your bank won't get you a loan.
But sometimes having a mortgage broker can actually make the difference between a loan approval for that home loan, or a decline letter.
Reasons for using a Mortgage Broker
- Specialised mortgages and lender knowledge. They know who has the best offers, and which only look good on paper.
- A broker can save you time and ensure that you don't miss great offers.
- Get your application to lenders who are more likely to approve your loan.
- Advise when an advertised rate is not what it seems
- Allow you to consider home loans from mortgage lenders you may never have heard of before.
- Prevent you from trashing your credit rating. Aimlessly applying for loans all over can get you declined. Make sure you find the best loan and lender first, then apply.
- Mortgage brokers know the home loan lenders that factor in incomes that others don't.
- Did I mention the services of a mortgage broker are mostly free to you? Some services are not free, but setting a home loan usually is as the broker is paid a mortgage broker fee.
Mortgage Broker verses applying direct to the lender summary
Using a mortgage broker is a fee to you service that can save you time and money tracking down the best loan for your needs.
Mortgage brokers know the market better than you do, and it makes sense to use this experience, if it were not free!
But some people just have a need to do everything themselves. I you are one of them, don't sweat it, just do it yourself.
