10 Questions for a Mortgage Loan Broker to make sure they provide the correct Refinance Mortgage Broker Service
1. What array of lending institutions do you as a Refinance Mortgage Broker have on your financing panel?
Make sure that the person you are dealing with is a Refinance Mortgage Broker or Mortgage Planner who has access to a panel of lending institutions as opposed to a Mortgage Representative who only stands for one lender and that lender’s choice of products.
2. What would bethe best type of homeloan that would fit my cashflow cycle and finance arrangements?
Make certain that the Refinance Mortgage Loan Broker or Mortgage Planner demonstrates how the particular type of homeloan will maintain your finance structure and maximise the usage of your cashflow. It is important that the method in which the home loan payments are required to be made will not limit the effective use of your cashflow, in minimising the amount of homeloan interest payable.
3. Is it advisable to focus on the mortgage products with the cheapest homeloan interest rates?
If the response is an explicit yes, enquire as to why and proceed with caution! There ain’t nothing wrong with low home loan interest charges provided the lending institution shows a track record of constant cheap interest rates and stable funding! Home loan products that seem to offer a grand deal may be full of high penalties, commissions and charges, or may not give the versatility of use that you will require in the future. To steer clear of taking out a loan you may well later regret, consider with caution a recommendation established principally on cheap interest rates.
4. What are the best loan products to suit my immediate circumstances and plans, and how will they support any future goals I may have?
Make certain the refinance mortgage brokers proposal consists of at least 3 home loan products that have fair comparisons between them. Beware of an assessment that contains 1 product that seems to be far better quality to the other 2! Look for product features and product flexibility that will allow you to tweak the mortgage product to meet your future objectives and plans.
5. Aside from the charges and fees connected with the new loan, what additional fees and charges am I likely to incur?
Financial Institutions, Service Providers and Government Departments often charge fees etc associated with the lending process and occasionally they can be an expensive surprise. A valuable Refinance Mortgage Broker or Mortgage Planner will furnish you with a Loan Costing Sheet itemising all costs, fees & charges connected with the proposed home loan process.
6. How do you get compensated and what is your payment structure?
Asking for an explanation in writing of how your service provider gets paid for their act will help recognize and reduce conflicts of interest. If the suggested Lender’s payment is by far the highest remuneration of all credit providers on the broker’s lender panel, proceed with caution as this may well signify a conflict of interest.
7. Do you present your clients with a Mortgage Broking Contract?
Not every Refinance Mortgage Loan Brokers service is specific in what it will deliver as compared to what it is that you have need of as a final product. Hence it is warmly suggested that a Mortgage Broking Contract be drawn up among the parties outlining the scope of services/products to be provided and costs connected with the work.
8. Do you carry out FREE Annual Reviews and what further services do you offer?
Identify how enthusiastic the broker is to stay in touch with you and ensure that your home loan is meeting with your requirements. What other services does the broker give either personally or via referral that may well be of benefit to you and are there discount rates to be had if you bundle these services with that of the loan ?
9. Where may I go if we experience a disagreement that cannot be resolved?
Do you have an External Dispute Resolution Service (EDRS)? Request the service provider to make clear the complaints process offered by their business, outlining who you can complain to and the EDRS they are an associate of? A valuable Mortgage Loan Broker will provide you with a personalised Financial Services Guide at first meeting which will outline all the facts of their complaints procedure as will their Mortgage Broking Agreement.
10. Are you an MFAA certified Mortgage Loan Broker?
By dealing with a broker who is a certified MFAA member, you are dealing with a broker that has fulfilled minimum standards of education, experience and ethics to sustain their membership status.
Kezz Roby is an Australian based Mortgage Planner and Refinance Mortgage Broker who is well known for his Mortgage Refinancing Strategies that have greatly benefited many Australian homeowners. You can get more in-depth information and tips related to Mortgage Refinancing at RefinancingGroup.com.au website.
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