What should I bring to my first interview with a mortgage broker?
It's not uncommon to get lost in the marketing, offers, stats, interest rates and everything else that comes with buying a property. Many people turn to a mortgage broker to help clear up the confusion.
A broker is independent from lenders (except for a few groups that are owned by the big banks), and usually take their commission from the lender, not your pocket.
It means for no extra expense, a meeting with your mortgage broker can be extremely beneficial.
It means for no extra expense, a meeting with your mortgage broker can be extremely beneficial. They can let you know if you are looking for a home loan that suits your income and lifestyle, and can even open the door to new mortgage options you may not initially know about – such as low-doc loans for self-employed Australians.
If an interview with your mortgage broker is coming up, here are three things you should bring:
1) Any mortgage options you are considering
You've no doubt had a look at the housing market, and may have even decided on a property. The next step might have been chatting to your bank, or simply looking online to see what lenders are offering.
Present your options (for home and home loan) to your broker. They should be able to tell you rather quickly if you're on the right track. If not, it's time to bring you back to it. If you've not even glanced at your mortgage options yet, not to worry.
2) Questions (lots of them)
Most importantly of all, you'll have to come armed with a list of things you need answers to. In terms of your broker's experience, there are a few things you could pose, such as:
- What is your experience?
- How many banks and lenders do you deal with?
- Do you offer 'in house' financial planning advice on things like life and income protection?
- Do you charge a fee?
From there, it's time to start asking about your mortgage. Should I go fixed or variable when looking at my interest rates; could I split my home loan, or use a redraw facility or offset account? These kinds of questions help you choose the most suitable mortgage options for your situation.
Finally, once you have some choices – or even identified one ideal lender – you can ask the type of queries you'll need to know for the future.
- How long will it take to pay off this home loan?
- Do I have an exit strategy?
- What will happen if I cannot pay my mortgage?
Your broker may also be able to help you with things like life insurance and income protection, to help get your financial security in order before taking out a home loan.
3) Some paperwork
There's some admin to run through when you begin the process of taking out a mortgage, so bring along:
- Your latest payslips if you're on wages
- Latest two years tax returns if you're self-employed
- Latest statements on credit cards and existing loans to show limits, balances and repayments
- A copy of your Contract of Sale if you've already signed one
- A copy of a rates notice on any existing properties
- Drivers licences
Anything you're unsure of? Give Eclipse Financial Services a quick call on 07 4946 7359 and we'll answer any questions you have.