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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What Is Mortgage Refinancing?

Mortgage refinance
Mortgage refinancing is pretty simple to explain. Basically, it’s taking out a second mortgage on your home. In some situation, refinancing can simply mean that you’re switching mortgage companies. Many go through the first example of mortgage refinancing because they wish to make a large purchase that they don’t have the money for. When people choose to switch mortgage companies, it’s usually because the other guy can offer them a lower interest rate.

The Mortgage Company You Have Now May Offer You A Lower Rate If You Refinance

As we get older, we tend to become more responsible. Established adults have steady incomes and are able to pay their bills when they’re due. This allows them to build up their credit score.

It’s possible you took out your mortgage on your home when you where pretty young. Either you didn’t have enough time to establish a decent credit score, or you where unable to establish it due to a lack of money to pay bills. This probably means you where stuck with a pretty high interest rate.

Now that you’re older and have proven yourself to be more responsible, the bank that lent you your mortgage will offer you an interest rate that’s much lower then the one you have now. This could save you hundreds, and maybe even thousands, of dollars a year.

Thinking Of Using Home Equity To Buy That Car You’ve Always Wanted?

Using home equity to take out a loan does not mean you’re going to have to pay two mortgages every month. Instead, the mortgage company will pay off the amount you have left on the original mortgage by using some of the money you’re borrowing. Since the money you’re borrowing will be partly used to do this, will actually be responsible for paying back more then the cost of your large purchase.

Something to Consider Before Refinancing

Almost every mortgage contract has a clause which states a penalty for refinancing. This penalty is often thousands of dollars. So if you’re refinancing to save yourself a few hundred dollars in interest rates every month, it may not be worth it. Be sure to take any penalty into consideration before deciding whether to do this. In some situation, the home owner is saving money despite the penalty.

It’s Always Wise To Talk With A Financial Adviser

To truly know you’re making the right decision, you should speak with your financial adviser. If you do not have one, you can easily find reviews for certified advisers on Angie’s list. The site is free to use now, so there’s no reason not to take advantage of it. Don’t let one bad review deter you. Some people are impossible to please.

Mortgage Refinancing Exists Because It Works For People

If mortgage refinancing is such a terrible option, it wouldn’t be the one taken by so many people. Do yourself a favor by seriously considering this potentially beneficial strategy. Other home owners have already done it. Is it time for you to jump on board?