Just to be clear, we are going to make use of the next phrases interchangeably all the way through this particular post yet they each mean the very same thing: “home loan”, “bond” & “mortgage” are utilized either way. Also “bank” & “lending institution”, and then also “broker” & “originator”.
When you need to get someone to help you obtain a bank loan, then you require a mortgage broker, also referred to as bond originators.
The brokers will consider your financial situation and then attempt to secure the best bank loan from all the several lenders.
Mortgage brokers are normally paid their fees directly from the lenders for sourcing home loan applications, for this reason using the service of a mortgage broker will not cost the buyer any money.
Does it pay to use a mortgage broker?
When starting to make applications to several banks it will quickly become clear why it is so valuable to use a broker. First, remember, they are professionals when it comes to bonds.
They are well acquainted with the residential property market and they ensure that they keep pace with which sorts of home loans banks offer.
They are also in the know as to which banks would be more lenient should you have a lower credit rating, and which ones will offer you better than average rates should you have a high credit rating. They will therefore search through the various financial institutions for the best home mortgage offers for you.
You realize that if you have the opportunity to compare several mortgage offers from a number of lenders you will have the opportunity to make a good choice. However, it takes a lot of time and effort.
It is your choice then, either get your mortgage broker to carry out all the hard work for you in finding the best lending rates out there, or do it yourself.
If you speak to your own financial institution (the bank your income gets paid into), the person or relationship consultant there is only able to present you mortgage packages and interest rate quotes from that one specific financial institution.
Naturally, if you just get one quote you will never know if you are getting a good offer or not, however, if you obtain a number of quotations you are able to compare them and make a good decision.
Mortgage brokers will also save you lots of time. An expert broker will try to find the best financial institution for your distinct needs and will definitely recognize which is the best home loan for you.
The broker is also the one who is going to deal with the irritating documentation and also the never ending fighting and follow ups with the lender in order to get the home loan granted in the shortest amount of time. This will certainly get rid of a huge amount of stress and anxiety from you and simplify the transaction.
The biggest reason why buyers make use of a mortgage broker is due it being a big time-saver, stress reducer and hassle free.
Must you do it yourself?
If you have gotten to know a consultant at your bank you could do a motivation and follow the process on your own, but remember, you have no idea if you could possibly get a better deal somewhere else.
Each and every financial institution has its very own requirements based upon your credit history and financial standing and if you try to do it yourself you may find that you are only receiving rejections due to the fact that you forgot a tiny, but vital fact here or there.
As soon as an application is rejected it is an uphill struggle in order to get it approved.
If there are problems in the home loan application you are going to have to solve the problems – and then write a motivation to try and overturn the decline.
Grounds not to use a bond originator?
There are some dishonest bond brokers around – they will most likely charge you an extra fee to work on the application even though they are already making a commission from the transaction.
Should you meet any of these loan brokers who try to charge you any additional fee, then you know that you are dealing with an unscrupulous person.
What’s more, a lousy broker can work to the benefit of a specific financial institution, and not yours. A few bond originators have built up connections with financial institutions which can work to your disadvantage.
To illustrate: A mortgage broker could stand to earn a bigger commission from one specific mortgage lender and could try to force the transaction in their direction, even though it’s perhaps not the very best deal for you. It is of the utmost importance that you work with an independently owned mortgage originator who is unaffiliated from real estate agencies and mortgage lenders.
In conclusion, not all mortgage brokers are equally competent.
If you would like to know who the best mortgage broker is in your vicinity, just do a Google search. Let’s say you live in Cape Town, then you should type in “bond brokers in cape town” or you could also try ”bond brokers in south Africa”.
Doing thorough research by using Google, can really help to direct you towards a credible bond broker who will work in your best interest.
Another good indicator is good and bad write-ups. Enter the name of loan broker that you have found and include the word “review” after it. An example would be if you found a company… let’s just call them “Acme Bond Originators”.
So now you would go to Google and type in “Acme Bond Originators REVIEWS” and notice what results show up. You could also type in “Acme Bond Originators COMPLAINTS”.
What you should be looking out for here are bad ratings and grievances. In case you find any stay away from that mortgage broker and go to the following one.
In addition, ensure that you are dealing with a genuine, live person and not a faceless site that just collects names on the web and sells it off to bond brokers.
The trouble with that is if these guys must buy the details of buyers considering making an application for a home loan they will have to recoup that expense, and again, they might possibly give priority to a lender that gives the highest commission, not the financial institution offering YOU the best deal.
The benefit is that if you do your proper analysis of a bond originator you’ll land up working with a professional broker who has proper expertise and is pro at the things they do. This will pretty much guarantee that you get the lowest rate home loan meaning that you’ll save thousands over the term of your home loan.
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