Brokers can help connect you to the lender best suited to meet your mortgage needs by shopping around on your behalf, in contrast to loan officers who are exclusively employed by one lending institution and are only able to offer that institution’s products.
Almost 70% of borrowers today turn to finance brokers when looking for a home loan since they are able to connect consumers to the best products available and can negotiate the lowest rate on your behalf.
Lenders typically evaluate you against five criteria before deciding whether or not to provide you a loan:
Your potential to pay back the loan
The lender will determine your ability by examining your employment history and salary to see whether you have a steady stream of income that will allow you to repay the loan over time.
How much money do you have on hand?
It is common practice to evaluate your capacity to pay a portion of the buying price up front. However, the amount varies, and certain specialised lenders may accept a 5% deposit.
The property’s assessment
The lender will value the property because it is used as collateral if you are unable to repay the loan. The lender will evaluate the property’s value based on the report before deciding whether to grant the loan.
Your financial background
The lenders will evaluate your character as a borrower and whether you are worth the risk based on your credit rating, costs, and debts.
Market circumstances
Market economic conditions can affect the interest rate you can get and whether you have to put up additional collateral. They may also have an impact on the repayment plan.
To learn how we may assist you adjust your application to the lender’s credit policy and offer advice on a product that suits you, contact us today.
Pointer Finance is your smart guide for everything to do with residential, self-employed, and SMSF loans. We’re experts in personal lending so you don’t have to be. We’ll keep an eye on the future while finding you competitive, flexible loan options with a speedy turnaround, so you’re not kept waiting.
Contact Pointer Finance now for a no-obligation chat. We’d love to talk you through your available options!