How Mortgage Brokers Help First Home Buyers

Jan 5, 2021
How Mortgage Brokers Help First Home Buyers

Buying a first home can be challenging since you have no previous experience and have only minimal information in your hands.

Unless you are careful, you may make some wrong decisions that could lead to undesirable consequences. Hence, it would be better to hire the services of the best mortgage brokers in Melbourne if you are a first-time homebuyer.

A professional mortgage broker will hand-hold you through all the stages of the complicated home loan process, making it easier.

Ways in which a mortgage broker guides first-time homebuyers

Your broker will help you in the following ways:

1. Your mortgage broker will get your home loan application approved

The initial step you need to take while applying for a home loan is to verify if your financial status is healthy.

A housing loan is a big responsibility for which your finances must be secure. Your broker will help you understand your creditworthiness through your credit score, income sources, and your lifestyle. 

Hiring an experienced Home loans Melbourne broker will ensure that your loan application is approved. The broker has inside knowledge of how lenders assess loan applications and can guide you adequately on preparing your application.

The broker will help you obtain a pre-approval that is vital for acquiring a home at auctions. He will help you figure out which lenders are the best for your requirements and current financial status. 

Mortgage brokers help get your application approved in these ways:

  • They will help improve your credit score
    Before approving an application, lenders verify the applicant’s credibility, and therefore, it is essential to ensure your credit score is ideal. 

    Your broker will advise you to clear all your other financial dues promptly to improve your credit rating. Ensure that you have paid all your utility bills on time since the lender will approve your application only if your credit report is unblemished.
  • Displaying your employment stability
    Lenders will next look at your employment stability while verifying your application. They generally need applicants to be in their current jobs for at least the last six months. 

    Your mortgage broker will suggest showing your lenders that you are stable at your job and have a steady income. 

    If you are a contract worker or a temporary employee, it becomes more challenging to prove that your income is stable enough to enable you to repay the loan. With his experience, your broker will find you a suitable lender and the right home loan product.
  • Proof-reading your application
    Lenders often reject applications that have mistakes. Brokers ensure that your application is perfect since even a small error can delay your home loan by days. 

    They make sure that all the information provided in the application is accurate

2. Your mortgage broker will help get you the most suitable loan

Home loans are not always about getting cheaper interest rates. The loan should have features that suit all your requirements.

A good mortgage broker will suggest loan products that are within your financial constraints. He will guide you about home-loan features that will benefit you in the future.

He knows what lenders offer and will guide you to select a loan with the right features with his experience.

He will provide a variety of loan products from different lenders, allowing you to compare the various offerings and select the best product

Some of the home-loan features that mortgage brokers suggest are:

  • Offset account
    This feature is excellent to reduce your home loan’s interest rate. An offset account is a high-interest savings account that is linked to your home loan. 

    You can deposit your salary and other cash into this account. You get the benefit of paying interest only on the difference between your loan balance and the amount in your offset account.
  • Redraw facilities
    Your broker may suggest going for a home loan with redraw facilities if you are prepared to make additional repayments other than your monthly instalments. 

    The redraw facility allows you to utilize the extra repayments made on the loan to meet expenses like a home renovation or buying a vehicle. 

    In case the accumulated funds are unused, they will be adjusted to your loan payment, thereby enabling you to repay your loan earlier.

3. Mortgage brokers guide you on buying your new home

If you are a busy professional with insufficient time to manage your house affairs, you can rely on proper guidance from mortgage brokers.

They will help you arrange the essential documents needed for processing your home loan. You will be guided through every step of the loan process with their valuable advice and thus prevent costly errors.

They will deal with the lender on your behalf and present your financial position to the lenders. You can also rely on them during the settlement process when the transaction has ended, and you receive your home keys

4. Mortgage brokers provide free services

Another benefit of hiring brokers is that they do not charge any fee since they usually receive commissions from lenders for referring customers.

You can take these precautions to ensure your broker is trustworthy:

  • Select a broker who is a member of the Mortgage and Finance Association of Australia (MFAA). Such brokers are obligated to provide their clients with any necessary information. 
  • Check the credentials of the broker you hire. Verify his experience with his previous clients, and find out how he handled their transactions
  • Surf the official websites of brokers, and read forums related to brokers to locate ones who are well-experienced

When buying your first home, enlisting the services of the best mortgage brokers in Melbourne would be far better than navigating the home loan process by yourself.

Mortgage brokers work in your best interests and help you acquire a home loan best suited for your financial capabilities and present situation.

A knowledgeable and well-experienced mortgage broker will guide you through the loan process smoothly and help you achieve the goal of buying your dream home. 

Loan waves is a fully licensed and accredited broker in Melbourne with more than a decade’s experience helping numerous clients acquire home loans.

We organize all the documentation and guide customers through every step of their loan application process.

We are 100% committed to getting our clients the most suitable loan products with the best features, interest rates, and structure. Our team’s sincere efforts have helped several Australians easily buy their dream homes.