The house buying process need not be a tedious and time consuming activity if you have the help of a trusted mortgage broker
By: Phoenix Lee/
1. MORTGAGE BROKER TEACH YOU HOW TO BUY
The husee buying process – from application, liaising with lawyers, compiling the documentation, and finally disbursement – can be a tedious, time consuming process.
Good mortgage brokers guide you through this process and teach you how to buy so that you don’t stress yourself out.
2. THEY ARE NOT TIED TO PARTICULAR LENDERS AND PRODUCTS
In Singapore, where we have a good number of local and foreign financial institutions, the choice of a lender and its packages can be mind boggling. In your house buying process, imagine having to compare over hundreds of different loan packages and wondering which is best for you. Even if you are a specialist in finance, it is not so straight forward as there are quite a few variables.
Most of the time, your property agent would also refer a contact at a bank to you. The point is, does the property agent know which bank package is good for you? Do they know how to calculate your loan affordability and interest costs? Do the property agents have the supporting home loan reports to assist you to find the right home loan packages and layout the facts for you?
This is where the mortgage broker comes in. Without any partiality, the mortgage broker can compare a range of products and lenders. This will help you save time and money, avoid confusion, and improve your chances of getting approved, as well.
3. SERVICES ARE USUALLY FREE
You heard right – the services of the mortgage brokers are usually free. That is, unless you have a complex situation or if you are only borrowing a small amount.
In case you are wondering why it is free to the borrower, it is because the lenders will pay the mortgage broker a distribution fee upon successful disbursement of loan.
iCompareloan also has tools such as the home loan comparison system, which compiles all the available loans that meet your search query, when you input the loan quantum, duration, housing type and whether the property is completed or under construction.
A simple property buyer home loan report can help you a lot in the house buying process.
4. YOU CAN BENEFIT FROM THEIR EXPERIENCE
Mortgage brokers usually have many years of experience in the credit and finance industry. This means they know how to get your application approved and how to get you the best home loan which fits your situation.
5. THEY CAN SPEED UP YOUR APPLICATION
Good mortgage brokers usually have very good relationships with lenders. This is good news for those who need their loans approved and disbursed with as little delay as possible, so that they can enjoy their new homes sooner. In most cases, the application turnaround time can be 2 – 3 days faster than going directly to the bank.
6. HOUSE BUYING PROCESS IS COMPLEX – GOOD MORTGAGE BROKERS MAKE IT EASY FOR YOU
A good mortgage broker will keep you updated on each stage of your home loan application until the loan is disbursed. They will liaise with the different parties like property agents, conveyancers and valuers, to make the process seamless and stress-free.
7. THEY SPECIALISE IN DIFFERENT TYPES OF LOANS
Borrowers with complex needs often get dismissed as ‘bad borrowers’. That’s because most banks do not have the skills to handle complex or the special requirements of the home buyers. A good mortgage broker, however, understands.
From property investing, to construction loans, to commercial properties, to bad credit loans, to unusual employment situation, to non-resident loans and non-traditional properties, there are many different types of loans. It actually makes good sense for someone who is looking to invest or someone with complex needs and goals, to use the services of a mortgage broker.
Engaging mortgage brokers is an excellent option especially if you don’t know much about the best home loans or the house buying process.
8. THEY CAN HELP YOU MAKE YOUR MORTGAGE WORK FOR YOU
The best home loans often come with different features which fit your unique financial needs. And from home loan with a redraw facility to interest-offset mortgage accounts, there are many different types of home loans with varying features which can help you better manage your mortgage over the long term. A good mortgage broker would be able to analyse your unique situation and recommend which home loan features are best for you.
In summary, engaging a mortgage broker can help you save time and money and ease the house buying process of shopping for a home loan.
Besides using a mortgage broker, you should also use a mortgage calculator to estimate the payment on a new mortgage, but it can be used for other purposes, too. Here are some alternative uses for a mortgage calculator.
For starters, you can read up more to have some basic understanding about house buying process or about how a mortgage broker can help you. You may also want to find out about housing refinancing in Singapore.
There is also a significant difference between a fixed-rate mortgage and an adjustable rate mortgage. The former allows a borrower to “lock in” a permanent rate, whereas the interest rate on the latter could go up in the future. Always remember to check with your current lender about repricing — your existing relationship could allow you to realize big savings in terms of both time and money. You should find out more about the differences between fixed and floating rates.