What To Look For in a Mortgage Broker?
In Australia, the number of people that now use a mortgage broker, instead of going directly to a bank, is on the increase. At the writing of this article. Statistics show that roughly 60% of all mortgage seekers are using the services of a mortgage broker. That says a lot about the service that mortgage brokers provide. Consumers nowadays are accustomed to getting what they want, how they want it. For customers to be voting with their feet and seeing a mortgage broker, is proof that the service they provide is preferred, to going direct to a lender.
The number of mortgage brokers in the market has been steadily increasing, year on year. This increase has been fuelled mainly by demand. And as that demand has increased and the world has become digitized, lenders have been shutting down branches, as they cut down on overheads. The natural progression for the finance staff there would be to move into the broking world. Just as a side note, lenders closing down branches and them relying on brokers can sometimes be a win for the lender now as they are cutting costs, and not necessarily getting less business.
Now, in my opinion, most brokers have worked in a bank or lending institution before. There is also, however, a large proportion of mortgage brokers who have never worked in the finance industry. These are people who are looking at a career change, starting their own business, or both. This influx of new blood is a great thing as it adds variety and brings a breath of fresh air to the industry. Couple with that that new brokers need to be qualified and mentored for two years before they can be left to their own devices. What this means for clients is that usually, the person that they will be seeing will be relatively competent in their profession as a minimum. That being said, the number of brokers being seen over banks is on the rise. The number of mortgage brokers in the market is also on the rise. Every year a large quantity of these brokers leave the market.
While the flexible work style is a drawcard for the profession, the high-stress levels and responsibility often will put people off. Couple with this that in the first five years of income are very erratic, and the long hours worked, the burn out rate of brokers is high. I do not say this to garner sympathy for us, but as the article is entitled, “what to look for in a mortgage broker,” you may want your chosen person around a few years later.
As with everything in life, when offered a choice, you would want to make an educated decision. With a broker, as there are a few out there. You might want to do the same. Please note that the following is my opinion, and you need to make your own decisions based on your circumstances and what works for you. Qualities that I would be looking for in a mortgage broker are as follows.
Is the mortgage broker that you are talking to regaling you with funny stories, or overly concentrating on building rapport with you? While there is nothing wrong with this, you do want your broker to be asking you a lot of questions. This information enables them to build a clear picture of your situation and recommend a product that will suit you. While building rapport has its place, be wary of someone who is not listening and not asking a lot of questions about you and your situation.
The amount of paperwork that a loan or mortgage entails is significant. Add to that the repercussions, of a late settlement or being put in the wrong loan. I would say that it is essential that your broker is organized. “Well, how do I tell if he is organized,” you say. It is often the little things that will be the tells. Someone that is consistently late for appointments with you, or forgets to do something they said, like call you tomorrow at this time. These would be initial tells that the person that you are dealing with is disorganized, in a role that it is essential, you must be. There are so many facets to a loan and so many boxes that need to be ticked. Having someone who shows signs of poor organizational skills from the onset may be a broker that you give a miss.
There is a lot to cover and get your head around when it comes to financing. The person conversing with you should be doing so in a “language” that you understand. A broker just touching on the details or hiding behind industry jargon, is again maybe someone you might want to avoid. Your Mortgage broker should be making sure that everything they are explaining to you is understood, and if not, should then be trying a different way of getting the information over to you so that you are across it. An appointment should also never be rushed so that you have time to digest the information and ask the essential questions.
A good mortgage broker, Adelaide, should know his or her stuff. Now you may say this is hard to check as that is why you are using one because finance is not your job. You often get a gut feeling about someone when you are asking them questions, and they are unsure of the answers. Trust your gut. Which brings me to the next point.
Trust Your Gut
As I discussed earlier, most mortgage brokers are good at what they do, and the industry, really regulates itself, with regards to keeping the better ones, as its tough. Again, this is to try and assist you. Make sure you get a good fit for you with regards to a broker. Trust your gut.
You should never feel pressured into a product and should always have a few to choose from if circumstances allow it. You should feel that your position has been considered from all perspectives. And that your best interests are being looked after. If this is what you are experiencing, then you likely have a good mortgage broker on your side.
At Castle Mortgages, our clients do the talking when it comes to what they think about us and our service. Have a look here and see what they are saying. If you need a great mortgage broker on your side. Get in touch with us today.