Broker or Bank
When people want to borrow money, their first thought is to go to a bank. This may not be the best solution when looking for a loan to buy real estate. Like your Licensed Conveyancer, a mortgage broker is on your side. He or she wants to get you a loan. They are willing to examine your personal needs, wants, and resources. They act as an agent between you and the lender. What is more, they offer a wider range of loan products and services through numerous lending institutions than does the typical bank.
A broker has relationships with numerous lending institutions. The broker can negotiate different lending options, and they handle a lot of the paperwork. A broker also has a good idea of the financial and real estate markets. Some mortgage brokers are accredited experts in finance. They can give you lots of sound advice and spot noteworthy financial and market trends.
Buying real estate is a very complex legal undertaking, with many steps that need to be accomplished in a specific order. Obtaining financing is just one of those steps, and a mortgage broker can make this important step much easier.
If a mortgage broker has a good reputation as being professional and reliable, he or she is likely a good bet. You might want to use referrals from friends to find a good one. Another measure to take is to find recent purchasers in the area you are interested in and ask for recommendations of reliable mortgage brokers.
It is advisable to have both your mortgage broker and loan in place before you start looking for your new home. Then you enter into any purchase or offer from a position of power. It is the same as having cash in hand!
Cash is king in the real estate industry. With your broker and your loan lined up like ducks in a row, you are ready to purchase real estate with confidence, because the seller knows you have purchasing power. Often times a seller will take a lower offer that is guaranteed because the loan is in place over a chancy higher offer.