5 things you need to know about mortgage brokers

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Though we generally read or hear so much beneficial assistance that we get from hiring mortgage brokers, there are still many things we usually do not know about them. For example, there is just a little information about how they are paid. Is it significant that they make known such information with their customers? Do you have real estate investment experiences? If not, should they need one? And many more questions. Let’s look for answers to these important things about mortgage brokers.

1. How do they really get paid?

First, you as a customer or borrower do not have to pay them. Though it is usually stated that a broker’s time is not free, it does not mean that they must pay for it. When looking for the services of mortgage brokers, it must not cost you any dollar.

2. Who pays them then?

The bank pays them for the research and the origin of the loan. Agents are paid in 2 ways: an initial commission and a follow-up commission. The initial commission is a predetermined percentage of the loan amount and is granted as a single payment. The tracking commission is the small percentage in the progress of the remaining balance of the loan.

3. Should brokers disclose how they are paid?

Of course, your broker should tell you how much money they can obtain from the investment you bought. An excellent broker will give you with a list of all the commission rates of the selected banks, as they vary for each bank and should reveal the commission that is being paid by the loan arranging.

4. Do they need real estate investment experience?

Not really. But a broker with experience in real estate investments is a positive point. As they are the investors themselves, it implies that they have an excellent background and a better understanding of the arrangement that best suits your situation. They will help you reach your future plans both as a borrower and as an investor like them. In most cases, mortgage brokers who are also investors know the best policy each bank has for particular situations. They also have a good understanding of the different borrowing capacities with lenders and help you use it for your best use. To find out more, check out mortgagebroker247.com.au

5. Why choose a mortgage broker instead of a bank?

When you work with a mortgage broker, you will have access to several banks. A mortgage broker is like your personal assistant who does all the things of mortgage loans for you, from research to preparation and completion of paper work, and even works hard to find and get the best offer for you.

Summary

With so many people there to help you, you think there would be enough information out there to assist yourself, without having to look for assistance or, worse, pay for the advice of a professional, when you have the ability to learn about the subject. After having understood the basics of a mortgage, a loan officer or lender can help you with the details and make the procedure happen. For more details, visit: http://www.mortgagebroker247.com.au/homeloans/

What to Look for in a Good Mortgage Broker in Melbourne

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What to Look for in a Good Mortgage Broker in Melbourne

There are many things you should keep in mind when choosing a mortgage broker in Melbourne and it is essential as this will guarantee the correct loan for you today and in the future. Also, it will make sure that the entire process of securing a home to live in, refunding at a lower interest rate, forming actions with your capital, etc., is carried out with as little inconvenience as possible and that is more appropriate. Align with the auxiliary professionals needed to meet not only the loan requirements but the complete financial solution.

Finding a good mortgage broker is something you should not ever rush to and there are some key factors you should search for:

A Proven Track Record

In today’s complicated market, you need a mortgage broker who has been at a good time with some good knowledge. If you have a close friend, a colleague or someone from the same line or related jobs such as a lawyer, bookkeeper or business broker who recommends a loan specialist, then you are one more step above some others and this raises the benefit of a positive experience for you.

Establishes a Good Relationship and Is Flexible

This is very important since each individual has certain scenarios that may need additional attention. Good leading impressions may be built or destroyed within the first minute of knowing someone. Because a mortgage is a personal process and often it may be a long process, having someone with whom you feel good is a good start, mainly because this relationship can last for many years.

Associations with Professional Bodies

The more professional bodies a mortgage broker is joined with then the more perspective they would be fulfilled with the strict compliance process. Professional bodies can include MFAA, MIAA, FOS, and COS to name some. Though at this point it is a great idea to request your academic qualifications and verify your broker and license numbers. Then you can check with one or all of the mentioned organisms for more information.

Do You Deal with a Huge Number of Lenders?

When a broker just deals with 1 or 2 lenders, you may lose the best possible choice for you. Usually, this may show laziness on behalf of the broker and a lack of understanding of the entire marketplace.

How Does the Broker Find the Best Solution?

A good mortgage broker will have an ordinary methodology and will not only scribble several notes on a pad but will give a computerized summary of your situation and preferences in preferably in PDF format. Ensure you know the real cost of the loan and it is always a great idea to equate it with what a bank could provide or even with one more loan advisor. In addition, taking into account the new rules and regulations of strict compliance, ensure your broker presents you with the exposes credit guide and also customer privacy statement. This is essential since failure doing this is just not complying with industry regulation.

Conclusion

These are some useful tips to help you choose a good mortgage broker in Melbourne. Especially, ask lots of questions; Investigate and make you feel comfortable with the person with you closely who is going through your personal circumstances.

How to get a loan when you’re self-employer

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 When one is self-employed and requires a personal loan, he/she requires some eligibility requirements. However, there are options available from both traditional and non-traditional lenders offering personal loans to self-employed individuals. Some lenders may approve the application in less than 48 hours.

Self-employed individuals can get mortgage loan in three ways;

  1. Through a specialist lender who provides personal loans for self-employed people.
  2. Apply for any standard personal loan if one can meet the documentation requirements as an employed person.
  3. Apply for a low doc loan, which requires fewer documents, although this type of loan is usually more expensive than a traditional loan.

However, you can find personal loans that have terms ranging from six months to five years or more. You will also be making monthly principal and interest repayments on your loan amount. Therefore, depending on your lender, you may be required to put up collateral as security for your loan. In essence, the only reason you should apply for a low doc loan is if you cannot meet the documentation requirements set out by a standard personal loan. Low doc loans normally have higher rates and fees than standard loans, so you do not want to apply for one unless it is your only option. Visit this site for more information : http://www.mortgagebroker247.com.au

For self-employed applicants, lenders usually require any or all of the following documentation.

  1. Tax returns. Be prepared to show the last two years of your full personal and/or company tax returns. These will help prove any income you declare on your application.
  2. Financial statements. These may include any profit and/or loss statements to also support the income you declare.
  3. Proof of rental income. If you have any income from rental properties, you can declare this with real estate statements or copies of your executed lease agreements.
  4. Notice of assessment. Make sure you have on hand your latest notice of assessment (NOA) given to you by the Australian Taxation Office. This shows tax information such as the amount of income tax you owe. Depending on the lender, you may need to provide your NOAs from the last two years.
  5. Recent bank statements. This includes statements showing your savings and business transactions. It may also include statements showing any other outstanding loans or credit cards you have with other lenders.
  6. Company specific information. If you own your own business, be prepared to provide information such as your company’s ABN, address, etc.
  7. Personal identification. Depending on the lender, this may be your Australian driver’s license, passport or proof of age card. You will either need to copy your ID and fax it over to the lender or scan it and attach the digital file to your application

The following factors should be considered when comparing the loans offered by different lenders:

  1. Interest rate. Make sure you know the difference between a fixed and variable interest rate.
  2. Turn-around time. Depending on why you are applying for the loan, you may need your money disbursed within a certain timeframe.
  3. Before applying for any loan, check what the eligibility requirements are.
  4. Application process. When comparing different lenders, be aware of the application process specific to each lender and what kinds of challenges or difficulties you may face when applying.
  5. Loan cost. Make sure you are aware of all fees associated with each loan
  6. Secured vs. unsecured. Always check to see if the loan you are considering is secured or unsecured mortgage loan.