5 disadvantages of using a mortgage broker
First time buyer? Have you also been told by everyone that you must have a mortgage broker?
Or have you ever used a mortgage broker before and are planning to use one again?
Sure it is not a bad idea to have one but to dive into a relationship with a broker without being aware of the downside would definitely not be wise and that is why we are here.
Here go a few points that you would need to look out for:
1. Extra cost:
You will pay this person whether it be direct or through your financial institution but in a way or the other, the money used to pay the broker will be issued from your pocket. Many times, certain banks and financial institutions in Melbourne may add the fees of the broker to the final loan. Much as it may seem trivial at the start but with each payment, the burden is for sure not going to get any less.
2. May not work for your best interest:
Much as all mortgage brokers will try to make you believe that they are working only for your interests but this may not always be the case. Do not let it skip your mind that most brokers in Melbourne work on a commission basis and if the pay on the lender’s side is heavy then they may end up working the best trade for themselves rather than for you. Hence keep an owl’s eye on whether he/she is watching your back or his/her own.read post here!
3. Not a big added advantage:
A few decades ago, you may not have been able to get the best deals without a broker however this is not necessarily the case anymore. With advances in technology and all the marketing done online, you could actually crack the best deal for yourself without a middleman. There also exist comparison websites and software that could break down each deal for you in greater detail. Other than avoiding the extra cost of the middleman, you also avoid the hustle of having to keep an eye on each and every move of your broker.
4. No real promises:
Ideally when you apply for loans, the lenders should give you an accurate good faith estimate which would be as close as possible to the total costs you will be undertaking. However many times, brokers do not give any guarantees for these estimates and quite a number of lenders in Melbourne may alter the final terms and it may not work in your favor in the end.view more tips from http://www.telegraph.co.uk/financial-services/money-comparison/mortgages/why-you-should-use-a-mortgage-broker-to-secure-the-best-deal/
5. Losing out on opportunities:
With the revolution in the financial industry in Melbourne, quite a number of lenders are not as vigilant in working with brokers anymore. While using a broker, you are surely going to miss out on such offers and yet one of these could easily have been the best deal for you.
While not entirely a bad idea, having a broker may not always work in your favor and before hiring one you should look into all facts such that you get the best out of it in the end.
Wishing you the best with your buy!