Meeting With A Broker
Your first meeting with a broker can be a daunting experience. Home loans are quite complex for first-home buyers and there is a lot to learn. However there are many steps you can take to be confident that your meeting with a broker will be a success.
A good starting point is to familiarise yourself with the expectations of the first meeting with a broker. You will asked about your medium and long-term financial goals and what is important to you. They need to know the amount you want to borrow, your understanding of the fees and costs of purchasing and your understanding of how home loans work. Knowing the direction your meeting with a broker will take lets you participate more actively in the conversation. This means you can better articulate your needs to your mortgage broker.
What Questions Should You Ask When Meeting With A Broker?
You should give consideration of the questions you need to ask your mortgage broker. Questions to ask may be what term does the loan go for. What are the repayment options? Are there different interest rate options. Are there any other fees attached to various loans? This like exit costs, early termination fees, monthly or annual fees and redraw fees? Other things may be how long the approval may take and the typical time frame for a loan settlement. Questions may pop into your head spontaneously during the meeting but being prepared is a good way to refine them. By doing so, the information you receive will be more specific to your needs.
Before your meeting with a broker, they may conduct a needs assessment prior to your face-to-face appointment. They may ask some Pre-appointment questions. Generally they will need to know your income and debt / expenses, employment history, dependants and some basic asset information. Do some of your own research on borrowing power. Any calculations are a guide only, but they are a good start.
Have Documents Ready When Meeting With A Broker
At the first meeting with a broker, save time by making copies and having the required documentation with you. This will include your ID, account transaction histories, pay slips and PAYG group certificates. For self employed, 2 years tax returns and financial statements. For renters, RE Agent rental statements. If you are ready to buy, you will need proof of funds to complete the purchase. If you already have an offer on a property, there would be a contract of sale. If you are looking at obtaining a Pre Approval, having your documents ready will be a big bonus. It’s mandatory for brokers to maintain the confidentiality of information that you provide to them. They should only pass on information necessary to enable them to lodge your loan application or where required by law.
Do Your Own Research Before Meeting With A Broker
To maximise your first meeting with a broker, do your own research on the broker. Many brokers provide content on their web pages and social media. This gives a good indication of their knowledge and expertise. You can also determine if they specialise in any types of loans that match your needs, where they are located and their panel of lenders. Finally, you should investigate their qualifications. Certificate 4 qualifications are the minimum standard for brokers, however better brokers hold Diploma qualifications. Dennis Smallwood holds a Diploma of Finance (FMBM).
Brokers Must Be Accredited
There are 2 peak industry bodies brokers should be accredited with along with the lenders they wish to recommend. Accredited brokers are held to higher standards. You can approach the meeting knowing your broker is appropriately educated by ensuring they are accredited. They must adhere to a strict and professional code of conduct and are authorised to access a large range of products offered by a variety of lenders. If a broker is not accredited with enough lenders, they can’t offer all the products they should. They will not have every lender on their panel, but enough to offer a great selection of options.
The Home Loan Comparison Co. compares home loans from a much wider variety of banks than most people have time to consider, and we find the loan that suits your goals.
We are experienced, knowledgeable and dedicated to building ongoing relationships to keep on providing personal and valuable service that is rarely experienced when dealing with the banks.