Home loans, and whether using a mortgage broker is better that popping into your local bank branch.
Like anything, there are pros and cons with both, so it’ll come down to what your most comfortable with.
Trust your gut
As a basic starting point though, I have a strong belief that once you checked off the person’s qualifications and experience (which is obviously important and necessary), you have to trust your gut a bit.
Using any kind of professional service provider should come down to whether you like them and trust them.
What I mean is, if they sound amazing on paper and appear to have all their i’s dotted and t’s crossed but you sit across the table from them and get a bad feeling, then just don’t go there.
When you’re making financial decisions, it’s important that you feel totally comfortable with the people you are dealing with, otherwise you’ll end up getting in your own way.
You’ll be second guessing and doing your own research and just not feeling confident about it all.
You’re just much better off finding someone you like dealing with, who you feel you can trust, and being comfortable with the recommendations and advice they provide you with.
What I like about a mortgage broker is that they will usually have the option to place your loan with a wide variety of lenders, and because they are not working for one institution, they shouldn’t have any particular product bias.
In theory. Questions to ask will be how many lenders to they look at, what kind of research do they do, and do they take your individual circumstances into consideration when choosing a product.
A bank lender will generally only be able to give you access to their own loan products, but this is not necessarily a bad thing, particularly if you trust and are comfortable with that bank.
In all likelihood they will be very knowledgeable about all of the different products they have, and the options that you can use. They may have a deeper level of understanding of their products than what a mortgage broker could.
What do you need?
All this being said, what’s quite important is the type of loan you’re applying for and how that is going to work for you in order for you to get ahead financially.
Things like fixed or variable interest rates, offset accounts, redraw facilities or lines of credit are all possible and have different advantages.
Looking for someone who can help you make those decisions is an important part of the equation, maybe even more important than which bank or lender to use.
I talk a lot more about how different loans work in my 8 Week Money Makeover Program, and the best ways to pay down your home loan faster, because let’s face it – that’s what we all want right?