Just because you have a mortgage broker by your side does not mean you will have the best decision possible. They will give you advice on what needs to be done, but the final decision will still come from you. It only means that you also do your share so you land with the best deal later on.
Start by asking questions. As a first time buyer, there are probably a lot of things that you don’t understand. It helps that you ask whatever bothers you so moving forward will be easier.
Is the bank with the lowest interest rate the best choice?
It is easy to be tempted in choosing a bank providing a low interest rate for property loans. The truth is that they might charge you in other ways. They might have hidden charges that would shock you. Some others have low interest rates, but very inflexible repayment scheme. They also have high penalty rates. Choosing them as your partner will most likely make you suffer once you start repaying. Let your mortgage advisor explain to you the details of the loan and why you should pursue one over the other.
Which bank is the best partner?
For independent mortgage brokers, answering this question is easy. They will give you information based on their personal experience. As they have partnered with various banks and lending firms in the past, it is easy for them to tell you which banks provide the best possible services and affordable rates. However, they will not make the decision for you. They will simply present the options. On the other hand, choosing a mortgage broker who is partnered with a specific bank will definitely mention that bank as the best choice for you. Whether or not it really is the best option, it doesn’t matter. They will get commission if you choose that bank so they will convince you that it is.
Which property should be chosen?
Aside from linking you with a bank or lending firm, a mortgage broker can also help you when it comes to choosing the best property. They know their way around properties as they have partnered with several clients before. If there are properties that are still in the market and they know the details about it, they can provide you with the best possible information. In short, you will get better information that you can’t get if you simply do research on your own.
Once all these questions are answered, choosing the best partner in buying a property would be easier for you. Don’t worry if your questions don’t make sense or are too shallow. After all, it is the responsibility of the broker to help you make the best decision.
Image via freedigitalphotos.net (Sira Anamwong)