What Is A Mortgage Broker and What Does A Mortgage Broker Do?
What is a mortgage broker?
In brief, a mortgage broker is someone who obtains finance for you. Usually but not always, it is money in the form of a mortgage to buy your home or investment property. A good mortgage broker will have access to many lenders who in turn offer many loan products.
To really answer the question of ‘what is a mortgage broker,’ requires an understanding of what a mortgage broker does, so let me run through what I do.
Firstly, for someone enquiring about how they will obtain finance to buy a home or investment property or perhaps even to adjust or alter a loan that they already have, I will arrange a time to sit down with them face to face (or over the phone if this is not possible).
I do this so that I can assess your exact wants and needs in a mortgage.
I will gain an initial insight as to what your goals are, establish your current financial situation and determine what you think your lifestyle needs are.
I will then explain your capacity to borrow, refinance or invest and the things that need to be considered and will present some questions that will help me to understand your feelings, thoughts and ideas about borrowing money and your capacity to do so.
You might like to give some pre-though to questions like:
• How much debt can I handle?
• What about interest rates and how will they impact my capacity to continue to meet my commitments?
• What is my level of income security level, what are my options if I am laid off work and would I consider personal income insurance when taking on a mortgage?
• What is the true or market value of what I want to buy?
• What is the true or market value of my assets?
• Is what I want to buy a stepping stone to where I want to go or is it my ultimate goal?
• What are my plans for the future – personally and financially?
These and other questions will evolve out of our conversation together and will be addressed before going to the next step.
Again, what is a mortgage broker? It's not just someone who's good with numbers. It's someone that can comunicate on a level with you that ensures they understand what you want so that they can meet your needs in the finance options that they present to you.
We will discuss the parameters of the loans that you will qualify for and I will advise you on the documents required to make any application such as – pay slips, tax returns, personal banking statements etc.
Having collated all of this information from you which usually takes between 35 to 55 minutes, I will end our meeting to go away and enter your appropriate figures into my computer to let the sophisticated PLAN software that I use do its work for me.
This will return various suitable loan products based on the criteria entered. I then test and fine tune the results with a range of possible options and what if’s guided by what you’ve told me about your loan requirements and life style needs in our previous meeting.
This requires some time but is necessary to ensure that I find the best options for you.
I will then re-book another time for us to get together so that I can explain why one product is better or more suited to your requirements (in plain English) than another.
Then, with your satisfaction and final approval I will manage your loan application from start to finish.
So, in a nut shell I hope that by understanding what I do as a mortgage broker answers the question of; ‘what is a mortgage broker’
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