Do You Need a Mortgage Broker for Your Kit Home?
There are different types of professionals that make up Australia’s real estate industry, including mortgage brokers. A certain website offers a basic working definition for mortgage broker: an intermediary who brings mortgage borrowers and mortgage lenders together but does not use its own funds to originate mortgages. A mortgage broker gathers paperwork from a borrower and passes that paperwork along to a mortgage lender for underwriting and approval. The mortgage funds are then lent in the name of the mortgage lender. A mortgage broker collects an origination fee and/or a yield spread premium from the lender as compensation for its services.
Australia’s real estate market continues to grow and emerge, and because of this, many Australians are not hesitant in investing in properties. However, the basic concepts related to the real estate market are still quite new to many consumers and are easily confused with even the most common terms used in the industry. Shopping for a mortgage in Australia is fairly easy provided that you have prior experience and/or training in doing so; however, it could also easily confuse first-time mortgage buyers. If you are yet to realize the dos and don’ts when it comes to mortgage shopping, it would be particularly helpful to first recognize the benefits of working with mortgage brokers for the sake of convenience and shopping efficiency.
If you are planning to go mortgage shopping for kit homes, below are the most notable benefits of hiring a mortgage broker for your first major mortgage shopping in the Australian housing market. If you are professional who is planning to buy kit homes but has limited time to do so, you will find convenience in hiring a mortgage broker. Experienced and competent mortgage brokers maintain an expansive network of lenders. Hence, if you want to get to know lenders who you can work with, you may want to hire a broker to do it for you, saving you time and effort. While you can contact lenders yourself, it could be a tedious and time-consuming task, especially if you only know the handful of lenders. Simply put, having a mortgage broker work for you saves you from the hassle of doing tons of legwork.
Dealing with lenders by your lonesome may be a complete hassle since some of them only work with reputable mortgage brokers. These lenders have trust and confidence in brokers they usually work with because they refer suitable clients. In relation to this, these lenders may offer special rates and terms to the brokers they know as well as their clients. It is not uncommon for some lenders to turn down deals with clients they barely know. Because of this, if you want to have an easier time lending from a company, it would be wise to contact a competent broker to assist and guide you.
One common misnomer about hiring a mortgage broker is that it will only cause additional fees, which is a bad news for mortgage shoppers who have limited resources. However, in reality, working with a good broker could even make lending more affordable and reasonable. Since there are different fees involved in applying for a mortgage, what you want is to find ways to avoid them. A mortgage broker can help you do that. It is not unusual for lending companies to waive some fees to brokers they trust, helping their clients save more in the process. In a nutshell, dealing with mortgage companies can be a bit of a hassle if you are doing it for the first time, but if you hire a good broker, you can save yourself from wasting time, effort, and resources.