Why do we need a mortgage broker? What can a mortgage broker Melbourne do that we cannot? Why do we need to pay for these services in addition to all other costs related to remortgaging or moving?
When asking these questions, it sounds tempting indeed to avoid mortgage brokers. However, here is why that may not be the most brilliant idea. When choosing a mortgage to offer you, mortgage brokers have to justify why they offered that particular mortgage. This means that you are protected, so the mortgage broker is required to find the mortgage that meets your needs, and that you will be able to afford. Besides, mortgage brokers are professionals and they are qualified to give you sound mortgage advice. This means their professional experience and knowledge is up-to-date. Also, they are on your side, and will try to get the best mortgage for you. They are familiar with mortgage criteria which has tightened in the last few years and mortgage brokers understand all of it. You are able to make a good use of their knowledge and experience. This is so, at least theoretically.
Nevertheless, nowadays it can be difficult to be an honest mortgage broker Melbourne. Recently, some of the largest real estate companies companies such as Chase and PMI Group stopped working with brokers. The refuse to underwrite policies on loans which started with mortgage brokers.
After some shenanigans engaged in by some mortgage brokers where they earned more money by offering to clients potentially bad loans, Congress considered banning the practice.
Now mortgage rates are pretty low, inducing high demand for refinancing. However, banks’ …