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Jaffa donuts

choosing a mortgage broker

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Jaffa donuts

We are in the market for a house. We have found in the past that some lenders are willing to lend us way more than we want or feel we can comfortably afford, and other won't lend to us at all. 

When we were seriously considering a particular house a couple of months ago we went for pre-approval with our local bank which we received for the amount we needed, but they don't offer the most competitive loan.  (we didn't buy that house)

That 60 days of pre-approval has now expired and they suggest that we don't get it renewed as it can affect our credit rating. Just offer on a new house 'pending finance' and there should be no issues getting the loan approved as long as our circumstances haven't changed.

So I am reluctant to approach other banks because I don't want to affect my credit rating, however I do want to shop around for a more competitive loan.

Are there any tips for choosing a mortgage broker to do the legwork - anything to look out for or do I just look for someone local with positive reviews?

 

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Kallie88

We were referred to ours, he's been great, helped us with 2 loans now. If you're in vic feel free to pm me and I'll pass on his details.

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-Emissary-

Could you ask your family and friends? Mine was through words of mouth from my friends.

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solongandthanksfor

do you have an up to date credit file handy? I never had preapprovals listed in mine,only the actual mortgage.

also go to the mortgage brokers association in your state. word of mouth is also good.

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Kiwi Bicycle

The Real Estate head of branch reccommended us to a Mortgage broker and he was great. We meet him, liked what he said ( he was very open about where his income would come from, what lenders he wouldn't even try us with etc) and so we took his plan and it worked well for us. The only slightly disappointing thing ( and it might of been that he left the company) but he did say that they do a 5 year anniversary mortgage check to see if they could get you a better deal.  However we ended up doing this ourselves. 

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Jaffa donuts
Posted (edited)

Thanks for the info.   Do you pay upfront for the service or do they get their income through the mortgage providers once your mortgage is set up?  or is it a combination of these?

We would be hoping to pay out our mortgage fairly quickly as we have a house on the market which once sold will cover it.  This would mean no ongoing income for the broker.  

 I've just checked my credit score, it comes up with the info below which looks perhaps like credit applications are taken into account. However it is currently excellent so I'm hoping a couple of mortgage applications won't spoil it too much.

Score Advice
See what's helping & hurting your credit score from the below Key Contributing Factors.

What's Helping

Lack of consumer adverse information                                     Med

Number of credit applications with multiple credit providers     Low

Type of historical consumer credit applied for                          Low

Repayment history                                                                    Low

 

Edited by Jaffa donuts

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Kallie88

Ours is paid by the banks, no out of pocket for us at all. I believe he's paid the same no matter which bank the loan goes through, so it's still about the best deal for your circumstances. He doesn't work with absolutely every bank you could get a loan with, so that's a potential drawback, but he's across a large amount. I believe the loan term (either what you take out or how long you actually pay it for) doesn't have any bearing for them either, ours actively encouraged us to pay off quicker if we could.

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