How A Mortgage Broker Can Potentially Help You Even If A Bank Can’t

If you are in Coffs Harbour you’re seriously considering buying a home, one of the first things that you really need to do is get yourself pre-approved for a loan. The best reason why, is that when you go looking at homes, you’re going to find the perfect home at an incredible price, but by the time you get your loan, the home will already be sold. In addition to that, most real estate sales people won’t even want to waste their time with you if you aren’t ready to buy, you’re called a tire kicker. Showing an agent that you have your loan pre-approved says you’re serious, and ready.

You Have Two Choices In Getting Pre-Approved

For the most part, there are two choices that prospective homebuyers have in getting themselves preapproved and ready to buy a home. They can visit a local bank and talk to a loan officer there, or they can visit a mortgage broker and see what they have to offer.

The major difference between a bank and a mortgage broker is that a bank loan officer will only be able to offer loans through their employer and they are usually quite restrictive with their qualifications. On the other hand, a mortgage broker will be able to offer mortgages from a wide variety of sources that are able to fit nearly any kind of income or home that you’d like to purchase.

The loan officers at the bank get paid a salary to do their job and help people get loans from their employer. On the other hand, a mortgage broker gets paid a commission and has an incentive to get you a loan  from any number of sources that he has.

The biggest advantage that a mortgage broker in Coffs Harbour has over the local bank is if your credit is complicated in any way, or the property isn’t exactly what the banks expect, he’ll still be able to get you approved.

In The New Economy, Many People Have Varied Income Sources

In the last decade or so, many people have become independent contractors, work at home consultants and have excellent incomes that come from a variety of different sources. While these people are usually well-paid and excellent prospects for a mortgage, a bank or credit union may have a hard time giving them a loan.

Mortgage brokers in Coffs Harbour will have several outlets for people in exactly this type of situation, in fact, there are mortgage companies that specialize in making loans to clients in nearly all walks of life. And since your mortgage broker in Coffs Harbour  works on commission, he will definitely take the time to find you the best loan available on the market.

In addition to that, if the real estate that you are trying to buy doesn’t exactly fit the regular three bedrooms, two baths, double car garage, scenario a mortgage broker is most likely your only option.

As you can see, there is quite a bit of difference in getting a mortgage from a bank or getting one from a qualified mortgage broker. Contact Mortgage Broker Coffs Harbour for more information.

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Top Mortgage Comparison Tips

Mortgage comparison

Buying a home is a huge investment. Finding the right mortgage for your home is confusing and very frustrating. However, through mortgage comparison, you can get the best deal. During this time, you are supposed to speak to different mortgage lenders to assess each possible option. Here are is a checklist to help you with mortgage comparison.

What’s Better Adjustable Or Fixed Rate?

With a fixed mortgage rate, you are locked into a fixed interest rate which you will pay consistently until the loan is cleared. However, the taxes, insurance and other costs on your mortgage might increase or decrease accordingly. On the other hand, the adjustable rate can either go up or down until the loan is cleared. Most mortgage rates with adjustable interests usually start with a period of 10, 7 or 5 years as an introductory period.

During this period the rate is fixed but after that period, they can change depending on various factors such as the prime rate. Most people prefer adjustable rates because the introductory period offers lower interests. However, you should assess whether you are comfortable with your payments increasing in the future before choosing either of the two.

Expected Closing Costs

These are usually about 3% of the buying price of your house. They are usually paid when the purchase of your house is finalized. They include fees charged by lenders, appraisal costs, processing charges, insurance fees and much more. Once you have received an estimate on your house, list down the fees you can shop for in order to reduce your closing costs substantially.

Special Programs

Before choosing any mortgage, check out if you are eligible for any special programs that can reduce the overall cost of your house.  For instance, you or your partner served in the military, you can qualify for a veteran loan which has low or no down payment. Even better, if you fail to pay a few mortgage payments, there are protections in place with this type of loan.

In conclusion, getting a mortgage is a very important decision that has a huge impact on your financial freedom. Therefore, comparing offers from different lenders will allow you to make the best decision.

One of the best ways to compare mortgages is to use a mortgage broker. Their service is free to you and they have software that can electronically compare loans from up to 30 lenders:

Darwin NT Mortgage Comparison