The Need for Mortgage Brokers

Most people who have never obtained a mortgage before think that it is a simple matter to knock on their banks’s door and ask for the mortgage of their choice. They have after all been faithfully banking at the same bank all of their working career, and have always assumed that they would be rewarded by the bank when the time came to get a mortgage.

Lisa Krallen, mortgage broker

However the reality can be far from this for mortgage brokers Gisborne, as the banks in 2017 a very tight criteria regarding who they will lend to and how much. For example the potential client needs to have a very good savings history and a very good employment history, they need to have proof of taxable income that is at least 25% of the total loan they want to raise, and they need to have a 20% deposit in free cash. Some first time buyers may qualify for a special loan that only require a 10% deposit, but they’re gross income will be limited to $130,000.

What many first time buyers find is that the bank does not come to the party and is not remotely friendly when it comes to helping out the client, and it is at this stage that many people turn to Mortgage Brokers for assistance. Mortgage brokers Manawatu are expert in providing financial advice, and in 2017 all need to be fully qualified and registered, the truth is that mortgage brokers in many occasions able to find a solution for the client where the bank could not or would not.

Brokers have access to a range of funders, including obviously that major Banks but also 2nd- and 3rd-tier lenders, plus the brokers know a lot of tricks of the trade in terms of how to best present the client to the bank and how to make the numbers look good. First home buyers approaching a mortgage broker can often be amazed by the quality of advice and service they received, and as far as those concerned they are not paying a cent for it. This of course is not really the case, as while the broker is getting paid a commission from the bank, and the commission can often be very large, the bank will be piling this cost on to the client in terms of interest payments etc. Nothing is really free in 2017