(pssst: they’re not scary)
So you’ve got those Big Homeownership Goals. Booyah!
Buuuut at the same time, taking that first step and speaking to a mortgage broker seems scary and overwhelming. Cue the inner voice: Maybe I’m not ready. Maybe I’ll waste their time. Maybe I’ll get laughed out of there. Or the scariest of them all, maybe I’ll get knocked back altogether.
So, when should you speak to a mortgage broker?
The short answer: as soon as you’ve got a property goal.
The longer answer: whether you’re scoping out your options, have a long-distance goal in mind or you’re ready to enter the property market (like, yesterday)… chances are you’ll benefit from having a chat with a mortgage broker. A good broker will help you get the ball rolling and set you up for success, no matter what stage you’re at.
The extra-long answer: Read on!
What is a mortgage broker, anyway?
When you’re hunting for a home loan, you can go directly to the lender or through a mortgage broker.
Having access to a great mortgage broker is a bit like having access to Google. You technically don’t need it, but now you’ve got it, you can’t imagine how you’d ever go without.
Why? Because a mortgage broker is the go-between you and a lender, helping you during the entire process — from identifying your needs to the back-and-forth with your chosen bank (phew). Your home loan expert’s sole purpose is to support you through the process. Pretty sweet, hey?
If you’re still weighing up the best way forward, you can learn more about mortgage brokers vs banks, where we dive into the pros and cons of both.
When should you speak to a mortgage broker?
When you’re first thinking about buying a home or investment property
Here at Finspo, “I’m not ready to speak to a broker” is something we hear a lot of. But the truth is if you’ve got property goals, speaking to a broker will set you up for success. They’ll provide guidance on where you are and where you need to be to enter the property market.
When you’ve saved up a deposit
So you’ve saved up a hefty deposit for your new home, nice one! Now? A good mortgage broker will take the time to explain how the process works, what you can afford to spend and then put your best interests forward when applying for a home loan.
When you’re going for pre-approval
Pre-approval is like a silent thumbs up from your lender to borrow money for your home. And it’s super handy because it tells you exactly what’s in your budget so you can narrow your search. Getting a mortgage broker involved at this stage will help move the process along, as they’ll take care of the paperwork and important details. Easy peasy.
When you’re actively going to house inspections
So you’re spending your Saturdays at house inspections (or maybe you’ve even found “the one”). Well, it’s not too late (in fact, it’s a great time) to get in touch with a mortgage broker as they can track down a great home loan for you before you start raising your hand at an auction.
When you’re refinancing your current home loan
If you’ve already purchased a home, refinancing is when you replace your existing home loan with a new one. And it gives you the opportunity to secure a better deal and reach your goals sooner. If you’re ready — or even considering refinancing — it’s a good idea to chat with a broker. They’ll be able to calculate the potential savings for your situation or help you plan ahead (eg. if your fixed rate mortgage is ending soon), plus help with the heavy lifting once you’ve chosen your preferred option.
When you’ve bought a property, but don’t have your finances sorted yet
Eeeek, so you’ve bought a property without having your finances approved by a lender. A bit of a riskier approach, but not uncommon either. There’s no time to dilly dally now — speed is key in this scenario. It’s crucial you go to a lender who will act fast and give your scenario the best chance of approval (which can ultimately avoid a sticky situation). Which lender is this you ask? Speak to an expert who deals with 30+ lenders every day and you’ll be off and running!
What to expect from a mortgage broker
So you’ve taken the plunge and booked your first meeting with a broker. Yahoo!
Before you hit Peak Overwhelm, remember that brokers aren’t scary. They’re literally there to support you and cheer you on.
We can’t speak on behalf of all mortgage brokers, but here’s what you can expect when you meet with a Finspo home loan expert…
- A conversation about your circumstances, wants, needs and goals. This is the first (all-important) step, as it’ll lay the foundations for how they approach your property journey.
- Some initial financial questions, including money coming in, money going out and your money on hand.
- A request for basic details, including date of birth, current address and any supporting docs (you can typically do this online in your own time).
And as with all industries, not all mortgage brokers are created equal. So here are some other expectations and signs you’ve found a keeper…
- They’re super helpful, making all your different options clear and understandable
- They don’t bamboozle you with industry jargon and fancy pants lingo
- They don’t make you feel silly for asking questions (there’s no such thing as a silly question!)
- It should go without saying (but never hurts to check) that they’re fully qualified with industry certifications and accreditations
What should I know before talking to a mortgage broker? (hint: it’s all about asking the right questions)
So now you know when you should speak to a mortgage advisor and what to expect from them, let’s put the focus back on you.
How can you approach the first meeting with a broker so you get the most out of it?
Ask questions, of course!
Here are our top questions (and responses) to make sure a broker has your best interests at heart…
Will you offer a range of different lenders and options?
The answer should be yes… because more choices can lead to better outcomes.
How many lenders do you work with?
A reliable mortgage broker should have a few up their sleeve. At Finspo, we have over 30!
Where to from here? (AKA what are the steps to buying a property)
A mortgage broker should understand where you’re at in your property journey and explain the home buying process from start to finish.
Who else should I talk to when purchasing a property?
Conveyancer. Buyer’s advocate. Building inspector. These are all people you can have on your side — a broker can explain what they do, when to call on them and how they fit into your squad.
Can you tell me about any current incentives or government grants?
Remember, a broker must act in your best interests. And that includes staying up to date on the latest incentives and grants (like the First Home Super Saver Scheme, for example).
How do you decide which loan is best for my circumstances?
The way they approach this question should be a combination of listening to your needs, applying their market intel and sourcing the best rate to suit your situation.
How much do you recommend I save up?
The answer to this will depend on your individual circumstances, but a broker should do the maths for you and give you a goal to work toward. They should also explain strategies that might get you there faster, like incentives and pledges.
If I go ahead, what information do I need to give you?
A mortgage broker should walk you through what they’ll need at certain times, which allows them to validate the information discussed and get to work for you. These will be documents that confirm your income, your savings, your expenses and who you are (like ID and sometimes a credit report).
Do you charge a fee?
Some brokers charge you a fee. But not Finspo (we get paid out of the lender’s pocket instead — and no we don’t play favourites).
Ok, so you don’t charge a fee. Does that mean I pay more for my home loan?
Absolutely not. In fact, a good broker can often negotiate on your behalf to get you an even better deal than you would have on your own.
What happens after your first meeting with a broker?
When you walk out of your first meeting with a broker, pat yourself on the back for taking a giant step towards securing your dream property!
But then you’re probably thinking, what happens now? Do they inundate me with phone calls? Leave endless emails? Pressure me to go ahead?
The answer is no (well, at least it should be!)
After meeting with a broker you can move as fast or slow as you like. Some people may choose to get the ball rolling straight away (awesome!) Others might not be ready right away, but leave with greater clarity surrounding their goals and options (also awesome!)
But there should never be any obligation to go ahead.
And hey, if you’re jumping up and down to get buying, then the next stage after the initial meeting would be the pre-approval process.
So whether you’re just starting to scope out your options or filling your Saturdays with house inspections, get started with Finspo today.
