It’s no secret that the home loan landscape is in a bit of turmoil, and it feels like every day there are new changes to policy, eligibility and lenders requirements. It also seems that every lender’s borrower-appetite changes on a regular basis and their main focus is about keeping the industry bodies happy.
Whilst doing your research is important in deciding the right mortgage for you, there are other things to consider in getting the right mortgage. You might find the home loan that ticks all the boxes in features, suitability and fees – but you might not be the borrower that the lender is looking for at the moment. They might not like your employment situation, or your savings history, or they may scrutinise over your living expenses. They might be shying away from investment lending or certain types of property, or their turnaround on approvals might be lengthy…the variables are ongoing.
Applying for a Home Loan
The next thing to keep in mind is that every time you apply for finance your credit report shows this. So each time you apply it becomes harder and harder as your credit score changes with every ‘hit’ on your report. So while you are researching the right loan for you, you also need to be researching that particular lenders policy to ensure that you are the type of borrower they are looking for. But where do you find that information? Lenders policy is not readily accessible.
Years ago, applying for a home loan often came down to your relationship with your friendly bank manager. Now, the most important relationship you need in this regard is with your mortgage broker.
It is your mortgage broker’s focus to keep up to date with the lenders policies, products and processes. They will listen to your current needs and your future goals, will gain a full understanding of your employment situation, will talk to you about your current spending costs and understand what are looking for in a home loan, they will also take into account the time-frame that you have in getting finance – and will take all of that information and match you with a lender as close as possible.
But most importantly, your mortgage broker will get it right the first time.