Hi All
Going to finally get the ball rolling and start enquiring with brokers for a loan. Before i do this tho i have a couple questions when dealing with brokers, im fairly new to this so pls bear with me:
1) Is there an accepted rule with how many brokers you can meet/sit with when shopping around for one? eg is it ok if i sit and talk with more than one broker? i feel kinda guilty if i were to ask several brokers a dozen questions each and only choose one.
2) I assume all brokers get paid via commission once the loan has been approved / signed etc. Is this correct?
3) How much work can i expect a broker to do for me?
4) Is it common or possible for brokers to be financial advisors as well?
5) Can you recommend any brokers ?
Thanks in advance.
Brokers do get what on the surface can appear like a truckload of commission……then again, they get no 'wage', have to pay all their own insurances, overheads, and also…..the lender pays them – so in actual fact, it costs you nothing.
This means you SHOULD expect personal interest and a good level of service.
Traps to watch for are brokers that try to sell you their own 'wholesale' loans, or branded products with 'fancy names'. These are via securitised funds, and make them a stack more commission – thus why many push them!
At the moment, most should direct yo to one of the major banks, and rightly so.
By all means talk to a few, and don't feel bad doing so. If you find one that you like though, and feel cofortable with – give them a go.
If you already have a relationship with your bank, make sure you get your moneys worth there too.
A lot of banks see 'broker deals' go pear shaped and handled totally ineptly, and this can frustrate, as the deal ends up going to the local branch often anyway. On the other side of the scale, a good broker will be abel to offer you a level of 'hand holding' and acess you will find rare with many banks today.
All the best – and don't apologise for asking questions!I am with V8 definately do not get kidded into dealing with someone who re-brands funding through someone like GE and tells you they will issue the loan statements and look after the account maintaince on their loan.
Whilst the apparant service appears appealing the loan will be funded through a securitised lender who themselves have suffered with their costs of funding in the current credit crunch.
With a franchise you are merely dealing with the individual who purchased the franchise who themselves may have very little knowledge or be fairly inexperienced in the industry.
Yes a mortgage broker can also be a licensed financial planner.
Ask your broker as many questions as you like.
I get emails from clients and potential clients all day long and not all of them take my advice and use our services.
Some merely want to bounce ideas or get a 2nd opinion which is fine.Just make sure your broker has a good knowledge of investing and is a property investor themselves.
Richard Taylor | Australia's leading private lender
Thanks for the replies.
in one of my previous posts, people had mentioned to use an experienced or qualified broker etc which is common sense. But is it appropriate to ask them to show their qualifications?Pirate
I think that all depends on what the qualifications are:
If you asked me to fax to you a copy of my Degree in Economics Certificate it would probably take 2 weeks to find it around the house.
If you wanted to ensure i was licensed and a Member of the MFAA then you could have it in 5 minutes.
The responses you get from your Broker will enable you to ascertain whether he has any clue of what he is talking about.
Richard Taylor | Australia's leading private lender
Hi Pirate
In relation to Question (5) I can strongly recommend Qlds007 aka Richard Taylor as an excellent Mortgage Broker. My partner and i have a couple of investment properties and at first we used a broker we found in the Yellow pages that was very very hopeless, through this site and by reading heaps of Richard's post, I decided to send him an email (and very glad I did).
He assisted us to structure our four investment loans properly. He answered heaps of our questions (and didn't make us feel dumb because we didn't know the answers). He knows his stuff inside out and he was always prompt in his replies and always kept us up to date with what was happening when we took out our fourth investment loan through him.
and lastly to boot, we did all this at long distance…..as Richard lives in Brisbane and we live up in far far far far north Queensland, so it was no dramas for him to assist us via fax and email.
Anyway his advice is invaluable.
Cheers
Hi Pirate,
There is a number of things to check with your mortgage broker.
– Ask for their membership certificate to the either of the Mortgage Brokers assosciations, most brokers are with MFAA, but some are also with FBAA.
– You should check how many lenders they are accrediteted with. If there are only 2 or 3 , then these are the only lenders they can put your loans through. Most brokers will have around 30+ lenders to choose from, but always best to ensure they have they have at least the main banks etc.
– Mortgage brokers usually now also hold a Certificate IV in Mortgage Broking or the equivalent, so good to ask for also.
– If you're located in WA, also ensure that your broker is licensed to operate in WA (WA are a bit more special than the rest of the country…
)In regards to choosing your mortgage broker, do shop around. Make sure the broker you choose is someone you feel you can trust and someone you're comfortable with. Referrals from family and friends who have had good experiences with a broker are invaluable.
Good Luck!
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