Is it wrong.. illegeal.. to have multiple brokers to apply for a loan on your behalf??
Heres the situation… applying for loan:
Single mum, 2 dependants, Self employed(2yrs),low deposit…Broker A) promised the world, didnt deliver… we applied for an extension no news yet… but if extension granted have about 10 working days till final final deadline…
Ive got a feeling if past performance is anything to go by… we prob wont hear from the broker till a few weeks after its all over… stating that there was a problem… blah blah blah…
Is it wrong to have another broker (who knows the situation) to also be applying for a loan for her from a another lender…
Is it illegal??
What if both brokers secure finance from different lenders?? what happens then??
It isn’t illegal but make sure you are honest with your new broker.
One problem you will face is the additional hits on your CRAA and the second lender will ask you whether you have applied to another lender for finance on this property.
Cheers
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I was also told by a broker that there are only 2 mortgage insurers available anyway (and often it is them that are the problem) so going to different brokers/banks doesn’t usually help.
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No, of course it isn’t illegal to deal with two brokers. But ………., not disclosing this fact to the second broker can work against you.
There are however pitfalls in dealing with several brokers. Some brokers have you sign a mandate which means that you are committed to pay them a fee if you don’t proceed after they obtain approval.
Unfortunately you supply too little detail for me to comment properly.
It certainly appears as if you have little time left before the sh.. hits the fan.
The things I am asking myself about are the following :
1. where is the property ?
2. if it is a unit, what size is the living area ?
3. is there, from the bank’s point of view, sufficient income to service the loan ?
4. why wasn’t the broker able to indicate whether you would qualify ? A broker knows what a lender is looking for so he would have a good idea.
5. It appears as if you’ve had some problems in obtaining a loan in the past, so why stick your neck in the noose (i.e. exchange contracts of sale) without first having obtained loan approval ?
6. Is there an obvious reason why there would be a delay ?
As someone else commented, often the problem lies with the mortgage insurer who may be ultra cautious in assessing your application.
Oftentimes a particular problem can be explained away !!
It is not correct however that there are only two mortgage insurers.
If you want some (free) advice on a more personal level (without baring all your soul to all on this website) feel free to contact me.
Pisces133
( [email protected] )
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