Buying a home is perhaps one of the most stressful things that we will ever do in our life times and one of the reasons for this is because we only deal with it once in our lives. Being unfamiliar with buying a house, we are unaware of the different terminologies lending establishments may use like an offset account or a withdraw facility plus, we may be unaware of the amounts of money that they would be prepared to lend us in order that we can buy the house we want. This means that we can end up having to visit several lending establishments and only after being disappointed by many, finally finding one that will agree to loan for the amount that we want but even then, if we do not fully understand all the small print, we may find ourselves with difficulties in keeping to all their requirements.
Mortgage brokers solutions to these problems are what many people are now turning to in order to save themselves any excess stress. A mortgage broker solution is one where the buyer obtains the services of a broker to look after the details of the house purchase for them. Once the broker knows what type of house you want and what you can afford to pay back for any loan, they will be able to advise you as to how much you can reasonably expect to borrow and then find a house for you within that price range. Having found a house that we can afford to get a loan to buy, it is the broker that visits the different lending establishments to secure the loan. Obviously they cannot sign a loan agreement on our behalf but they do at least secure a pre-approval for that loan so that we merely have to go in and sign. An added advantage to this is that as the brokers fully understand all the terms and conditions a lender may place on the granting of the loan, they are able to fully explain them to us before we actually sign.
Although the use of a mortgage broker could prevent stress in many countries, Australia uses them more than most other countries and one of the main reasons for this is because unlike in other countries, in Australia, it is the lender not the borrower that pays the broker’s fees. Obviously with no extra costs to face, a buyer may as well opt to gain from a broker’s experience and save themselves a lot of unneeded stress. Today, in Australia, it is estimated that mortgage brokers are involved in over 50% of all loans that occur and that percentage could go up when more people realize that mortgage brokers can also assist borrowers with other types of loan, apart from just loans to buy homes. With the experience that a broker has with dealing with lending establishments, it is only obvious that they could assist with other types of loan and they can and do; they assist with business loans as well as personal loans.