It is important to remember that your mortgage broker isn’t finding you a loan out of the goodness of his heart, he is receiving a commission on the deal, which may influence him to offer you a deal that works really well for him, but maybe not so well for you.
Ideally, you are looking for a broker who utilizes what is known as a revenue-neutral methodology. This means that the brokers will find the best lender and the best deal for their client, and only then look at their commission, rather than being driven solely by their reward. As a borrower, such a broker is going to be the one who serves you best.
The Brokers Credit Guide :
Finding a good broker, especially if you are new to this, can be difficult. Fret not, as there are telling ways that will help you know if you are dealing with a legit broker.
One of the first things that will help you know if you are in the right place will be if the mortgage broker gives you their credit guide, before discussing any of your requirements. This is a document that outlines exactly who they are, their background, the range of services and to which professional bodies they belong to. It will also provide details on who their lenders are, and very importantly, what their commission structures are. It is essentially a C.V. for the firm and it is a legal requirement that you be given it, so leave immediately, if they want to talk numbers before giving it to you.
One of the key characteristics to look for is transparency in the dealings, and a good broker should be totally open about their costs. They should explain to you exactly what fees they are charging for their various services, and they should explore different options from their range of lenders, explaining their commissions on each, so you can see that they are being truly independent.
Brokers should be totally open with you, and provide you with all the information that you need, with which to make a fully informed decision. They should also be completely transparent about their qualifications, regardless of whether they are mortgage brokers Central Coast people trust, or from the big city.
Customer Needs :
A good broker is going to ask lots of questions, to ensure that they fully understand and appreciate the customer’s circumstances and needs, before recommending anything. They should want to understand your short and long-term goals and be proactive in helping you in your planning. There is a fair amount of terminology within the financial sectors, and some customers may know what they are looking for, but they may well not be conversant with much of it, so beware of the broker who won’t take time out to explain every aspect of it fully. You can think of it as being like a jigsaw puzzle. A good broker will lay out all of the pieces for you so that you can see the full picture, so if you get the feeling that there are some pieces missing, or your overall understanding is lacking something, you may well want to choose a different broker.
One last tip is to ask how much of a brokers business comes from customer referral, as the number of personal recommendations a broker gets a good indication of the level of satisfaction they are providing.
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