Navigating the numerous loan options on your own can be daunting, a mortgage broker simplifies the home loan process. Below is my step by step guide of the process, allowing you to be better informed, when engaging with a professional mortgage broker. They have the in-depth knowledge, experience, qualifications and industry connections to help make your journey to property ownership a bit smoother. Below are the major steps that any thorough mortgage broker will follow, over the home loan journey.
- Initial Consultation
The mortgage broker process begins with an initial consultation. During this meeting, the broker will discuss your property goals, financial situation, and borrowing capacity. A mortgage broker will review your income, expenses, credit history, and any existing assets and liabilities. It’s crucial to be honest during this stage to ensure the broker can find the most suitable loan for your situation.
- Loan Research and Comparison
Next, the mortgage broker will research and compare different home loan products from various lenders on their panel based on the information you’ve provided. The comparison will typically include elements such as interest rates, loan features, fees, and lender’s requirements, giving a well-rounded view of your options.
- Loan Recommendation
Presented to you will be a selection of loan options that best suit your needs, explaining the pros and cons of each. The mortgage broker should provide you with a key facts sheet for each chosen loan which outlines the total amount to be paid back over the life of the loan, repayment amounts, and fees and charges.
- Application Process
Once a loan is chosen, your mortgage broker will assist with the application process. This often involves filling in the necessary paperwork, liaising with the lender on your behalf, and managing application deadlines.
- Loan Approval
If your application is successful, the lender will provide a loan contract that you need to go through carefully. It’s typically recommended to have this contract reviewed by a solicitor or conveyancer before signing. The mortgage broker can explain the document and answer any questions you may have.
- Settlement
The final stage is the loan settlement – this is where the lender transfers the loan amount to the vendor or their solicitor. Your mortgage broker will keep in touch with both the lender and your solicitor/conveyancer to ensure a smooth settlement process.
- Post-settlement
A good mortgage broker doesn’t disappear after settlement. They keep in touch to ensure your loan remains competitive and suitable to your changing needs, potentially helping you refinance down the track, if required.
Remember this is not financial advice and we are not financial professionals, the content on this website should not be construed as professional financial advice. Before making any financial decisions or taking any actions based on the information presented on this website, we strongly recommend that you consult with a qualified and licensed financial advisor