This article is for general information purposes only and reflects the state of information at the time of publication. It is not legal or financial advice. Always seek professional advice tailored to your specific circumstances before making decisions.
Broker or Bank
When people want to borrow money, their first thought is to go to a bank. This may not be the best solution when looking for a loan to buy real estate. Like your Licensed Conveyancer, a mortgage broker is on your side. He or she wants to get you a loan and is willing to examine your personal needs, wants, and resources. They act as an agent between you and the lender and offer a wider range of loan products and services through numerous lending institutions than a typical bank.
A broker has relationships with numerous lending institutions. They can negotiate different lending options and handle a lot of the paperwork. Brokers also have a good understanding of the financial and real estate markets. Some mortgage brokers are accredited experts in finance, offering sound advice and spotting noteworthy financial and market trends.
Buying real estate is a very complex legal undertaking, with many steps that need to be accomplished in a specific order. Obtaining financing is just one of those steps, and a mortgage broker can make this important step much easier.
If a mortgage broker has a good reputation as being professional and reliable, they are likely a good choice. You might want to use referrals from friends to find a reputable broker, or ask recent purchasers in your target area for recommendations.
It is advisable to have both your mortgage broker and loan in place before you start looking for your new home. This puts you in a position of strength when making an offer, similar to having cash in hand. Cash is king in the real estate industry. With your broker and loan lined up, you can purchase real estate with confidence. Often, a seller will accept a lower, guaranteed offer over a riskier higher offer.
