Purchasing a home is one of the most substantial investments we make, and taking a mortgage is apparently one of the most critical steps you would ever take in your life.
While selecting a mortgage broker, it is essential to keep certain things in mind and make a well-informed decision to avoid any repentance later.
Three common mistakes to avoid while selecting a mortgage broker
Never opt for the online lowest rate of interest
It is one of the most common mistakes that people make while selecting a mortgage broker to work with. They get swayed by the low-interest rate advertised online and make a hasty decision based exclusively on price. Interest is undoubtedly vital in assessing a broker, but it cannot be the only factor.
In most of the cases, the rate advertised by the broker may not apply to you because if your credit score does not match the requirements, the broker will not be able to offer you the same rate. Rates also vary depending on the kind of financing you are looking for.
Getting a mortgage is a vital decision in your life – do not base it on a criterion that revolves only around money. It would help if you found out someone who will fight to get the best rate for you, and it is possible only when he's experienced and knows how to deal with his customers.
He should not only be in a position to negotiate on your behalf but should also keep you in the loop of the situation – your comfort should be his ultimate goal. He should be quick to respond to your questions, help you to understand what he's working, and explain the details minutely.
Mortgage broker Melbourne not only deals with you, but he also has to deal with lenders and underwriters - until you are satisfied with his service, chances are none will be. And, this, in turn, your chances of getting a reasonable rate is reduced. Thus, we say it is better to work with mortgage brokers who use customer service as their USP and not the rate of interest, which is not entirely in their control.
Never mix professional life with personal life
Hiring a mortgage broker is not a professional decision, but it is nothing lesser than that. Mixing money with personal relations can be deadly to all the parties involved.
Every family has a person who works in the mortgage industry, and he or she can probably get you the best of the rate too. But, imagine the loss you will suffer if things do not go as per plan!
Bringing business in your relationships can be risky, and more so when the industry is as uncertain as to the mortgage industry – a lot of things can happen over the period to complicate both the deal and your relationship.
And then, how will you deal when the person whom you entrust with mortgage decision does not take your situation seriously? Moreover, do you think you can question a relative of yours the way you can ask a broker? While trying to save a few bucks, do not jeopardize your personal life, and though you can discuss your mortgage decisions with your friends, hire the service of a professional only.
Never work with a broker who doesn’t communicate properly
We have referred to this earlier also, but since it a widespread mistake in the mortgage industry, we would like to reiterate its challenges and explain them elaborately for you. Your broker must keep you in the loop on the progress of your deal instead of keeping you in the dark for days on end.
Even if there is no specific progress, he should reach out to share the current status. Communication and a regular one is critical, and only when the ice is broken between you two, you will be able to have better professional terms. It is a good idea to ask references from your friends and families who have worked with mortgage brokers earlier because only they can share the accurate picture of a broker.