Common Misconceptions About Mortgage Brokers

While mortgage brokers Newcastle New South Wales can help us in a variety of ways, there are a lot of misconceptions about mortgage brokers. Believing in these misconceptions can mislead you. You might not even get the best services due to such misconceptions. It is, therefore, important to know the truth before seeking the services of a broker. Here are some common misconceptions about mortgage advisors or brokers.

1.   You need to pay before working with a broker

This is a common misconception and some people wrongly believe that you have to pay before working with a broker. However, this is not true because a broker is paid a referral fee by the lender such as a credit union, bank or any other type of lender. If you are applying for a loan and you want the services of a broker, you don’t need to pay the broker unless it is your personal decision.

2.   You only need a broker if you have bad credit

This is another myth about brokers. Some people believe that you only need to work with an advisor or broker if you have bad credit. This is not true. Whether you have bad credit or good credit, brokers focus on finding the best mortgage solution for you. If you happen to have bad credit then the best solution would be to find a mortgage lender who is willing to lend to you even with bad credit. If your credit is great then you can still benefit from mortgage brokers. They will still help you find a good lender with the best terms and rates.

3.   Brokers work for lenders

Although brokers build a strong relationship with lenders and get a referral fee for their services, a good broker should be focused on the needs of their clients and do the negotiations on behalf of the client to ensure that their needs are met.

4.   You don’t need a broker because your bank will give you the best rates

You are a loyal customer to a bank and you think that the bank will reward you for being loyal. Unfortunately, this is not true because a lot of banks offer customers rates that are higher than what they are supposed to be. This means that if you do not shop around then you could be missing out on better solutions. Without a broker, you might not know better solutions out there and you might stick to your bank. Unfortunately, your bank might not be the best solution for your needs.

5.   I have a poor credit history so I do not need a broker

Other past issues such as poor credit history may affect your ability to get approved for a home loan. It does not mean that you should give up on your dreams of purchasing a home. If it is the right time for you to buy a home and a lender has rejected your application, mortgage brokers Newcastle New South Wales can help. Brokers have a network of home lenders they can utilise to find the one that is best for you.