Hi Guys,
I already have pre-approval for a loan - is it too late to approach a mortgage broker?
I am starting to realise I may need 1 to go into battle for me if there are any valuation problems.
Browse Forums Home Finance 1 Apr 24, 2009 10:57 am Hi Guys, I already have pre-approval for a loan - is it too late to approach a mortgage broker? I am starting to realise I may need 1 to go into battle for me if there are any valuation problems. Re: Mortgage Brokers 2Apr 24, 2009 11:44 am Connie - a broker isn't going to fight any harder then a Bank lending manager would. At the end of the day if your valuation comes in low any lender is going to look into ways to help. When I was a lending manager if it came in low then I would do some background work on the area - contact real estates / look into databases then in need go back to the valuer to question their findings. I even had some cases where even though the val was low I could get Mortgage insurance waived (one time was an 85% lend). So don't automatically think that a broker is better then your Bank - all depends on the person, not the institution. Some things are worth waiting for. Sydney Mortgage Broker 3Apr 24, 2009 3:39 pm kyton I even had some cases where even though the val was low I could get Mortgage insurance waived (one time was an 85% lend). These days if they waive the LMI at 85% they cut the discount available off the SVR. When you weigh up the cost of lost discount with the cost of LMI at 85%, some people choose to pay the LMI. To answer the OP, no-one could guarantee that you will receive a more committed service from one or the other. I can agree with kyton (who is an ex bankie) and say it depends on who you get as a mortgage broker or a bank lending manager. The major difference of course is a mortgage broker will present you many lenders not just one. Re: Mortgage Brokers 4Apr 25, 2009 6:03 pm If you are concerned about it then it may be better to choose a lender that allows you to choose the valuer. Re: Mortgage Brokers 5Apr 26, 2009 2:15 am CoNNiE Hi Guys, I already have pre-approval for a loan - is it too late to approach a mortgage broker? I am starting to realise I may need 1 to go into battle for me if there are any valuation problems. I don't think you can do anything by going into battle Connie if you have valuation problems. A lot of people have changed lenders and that seems to solve the problem. Valuers don't seem to budge if their licence is on the line. Based on all Ive read here (this is one of the biggest topis at homeone) as far as they are concerned they earned their fee by saying their opinion and the opinion doesnt have to be to your liking. Re: Mortgage Brokers 6Apr 27, 2009 2:29 pm I have a broker.. and she wanted me to battle the low valuation we got myself. So just because you have a broker, doesn't mean they'll battle for you.. I've found i've had to battle for myself throughout much of this whole process. I'd stick with what you've got and cut the middle man out. But if you decide you do want a broker.. I would have to reccomend thlo! Although he hasn't been my broker.. the assistance he has given me with my current battles between the bank and broker has been fantastic. If he gives the same level of service to his clients, I think you'd be very happy. Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Mortgage Brokers 7Dec 08, 2009 3:44 pm How do I calculate mortgage payments when buying a home from a family member? We are thinking of purchasing a house from my father. Instead of using a mortgage broker or bank, he suggested using a lawyer to set up monthly mortgage payments directly to him. We would still buy the house, and it would be in our names, not renting. How are payments like this calculated? Also, it seems this gives us flexibility and saves us money, but isn't as secure. What are the specific down-sides to this?
__________________ Re: Mortgage Brokers 9Dec 08, 2009 5:39 pm Well, the down side for your father is that he doesnt get the capital in full until, say,25 years down the track How much money you will save depends on what interest rate he charges you - if he is chargeing same as a bank would, you will save nothing (except possibly bank fees) If you mean what interest rate should he charge, then my answer would be at least the equivalent on what he would recieve in interest on the money in a term deposit - this will still be less than the interest you would pay on a mortgage as, of course, banks pay out less than they charge. (Otherwise your father will in effect be selling at a loss) As dstan says, an internet caluclater will work this out for you - pretend you are borrowing x amount at x interest rate over x repayment term and they tell you the fortnightly or monthly repayment Personally I would not be comfortable in family transactions of oweing or haveing owed to me, such a large sum of money for such a long time. We had a unit which we had held for 6 years as an investment property and then we sold it to our son - we sold it to him for under market value but he got a loan from ANZ and is paying it back - I think that is better way to go - no ongoing obligation or potential complications with each other. Re: Mortgage Brokers 10Dec 09, 2009 12:37 pm Hey All, I agree with the original replies to this thread. A broker or a lender are pretty much the same in respects to fighting for things for you. It depends on the person and their personality and in some cases experience. A broker has the option of multiple institutions as well as knowing/understanding the policies each institution has to better benefit you. I come from a realestate background, then into lending for banks, then into broking. So just like THLO & Kyton, I would begin with doing my own research on the area (more in depth than prior to submitting the application). A valuer has to provide their professional opinion regarding the value of a property yes. BUT, he cannot argue with raw facts or sales data in the area. If you are looking to fight the valuer it is best to have 3 sales of properties that are very similar that have sold in the area within the last 6 months. If you have some that are similar but better, the price should be higher. Properties that are similar but not quite as good should be slightly lower. These sales should support the price it is believed your property is. If the valuer is not able to fault these comparables. IE. give reasons why these are not reflective as a comparison to your property. Then their valuation will remain (very few valuations get overturned). Sometimes the lender or broker can speak direct with the valuer and it can come down to individual negotiation skills. Sometimes you have to deal through the lending institution (for brokers) or through an intermediary team (for lenders). Which makes things harder. If it is believed that there is a major misvaluation done and the valuer will not budge. You can push for it reassigned to a different valuer (it is VERY rare to ge this approved. and requires enough overwhelming proof that the lender cannot reasonably say no). As for the favourable purchase from your dad. As long as you have the correct vendor finance paperwork drawn up it may not be such a bad situation through a solicitor. One way of doing is if you agree on a price. Say for instance 80% of the value of the property. It may be possible to lend some of this amount from an institution in the fathers name and have a solicitor draw up a 'Binding Financial Agreement' that makes the repayments on the loan the sons responsibility. The father receives the capital benefit of the lending, and the son has set repayments as per a standard interest rate. Choosing a lender that will fund up to 80% as cash out is where the difficulty would come in. So it may need to be done in smaller increments. 10-20% for instance up front and then again after 2-3 years. This makes it a steady capital flow for your father. Something to keep in mind is that the paperwork needs to be drawn up correctly to start with by the solicitors otherwise there could be tax issues down the track. It would be best to speak with an accountant as well as the solicitors if you wish to go down the vendor finance track. [This post does not constitute any legal, financial or tax advice. This has been provided as reference only. Anyone looking to use this advice should speak with their solicitor, financial advisor and/or their tax advisor before doing so] Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Mortgage Brokers 11Dec 09, 2009 3:48 pm Trent Davidson A broker has the option of multiple institutions as well as knowing/understanding the policies each institution has to better benefit you. In theory the broker would have the knowing/understanding of the policies but in my experience the broker we had didn't seem to have a clue so we dumped him. I am not saying all brokers are like that just don't expect a broker to solve all your problems. Re: Mortgage Brokers 12Dec 09, 2009 6:16 pm dstann Trent Davidson A broker has the option of multiple institutions as well as knowing/understanding the policies each institution has to better benefit you. In theory the broker would have the knowing/understanding of the policies but in my experience the broker we had didn't seem to have a clue so we dumped him. I am not saying all brokers are like that just don't expect a broker to solve all your problems. Theory and practice tend to diverge when it comes to selecting a mortgage broker. Brokers cannot solve all problems but they can anticipate likely issues and assist you by taking action to ensure you get approval for the amount you need. Consider the valuation example, as valuations are sometimes more of an art than a science , an experienced broker will be able to guide you towards a financial institution with a more favourable valuation approach. Also if the valuation does not come up to scratch the broker can dispute this for you. My advice would be when you use a broker do not settle for somebody who has the most prolific advertising but make sure the individual you have chosen is passionate about what they do and can make things happen for you. Finally ask the prospective broker why should you be my broker? Do not settle for the answer stating I am accredited and get paid the same commission regardless of lender . This is the minimum standard expected, you need to ensure the individual you select can passionately represent your interests. Cheers Re: Mortgage Brokers 13Dec 10, 2009 9:36 am I've only heard bad things about mortgage brokers so I have stayed clear of them. Re: Mortgage Brokers 14Dec 10, 2009 10:10 am Brokers are all different. Different experience, different backgrounds & different passions. Not so dissimilar to Lenders of any one institution. Like any profession however. There are mediocre performers, poor performers & great performers. There is no way to know which is which unless you are referred by someone who had a good experience or by taking the step and dealing with that person yourself. Both have pro's and cons. A lender with an institution. Deals with only one institutions. So in 'theory' should know more about that banks lending policies? But, any one branch will see how many home loans a week? They deal with say 7 enquiries per week 2 of these turning to lending or up to 4 if they have good referrals and can convert well. These loans are with only the one lender and will give you say for instance 104-208 application experience with the one lender for the year. A brokerage with multiple institutions. Deals with many institutions: Bank, Credit Union, Private Funders etc. Deals with up to say 16 leads per week. Is able to convert between 4 & 10 of those leads. (because they are not restricted by the one lenders policy but have more options therefore making it easier to convert). This gives the broker firm between 208 & 520 application experience with multiple lenders per year. I personally have between 30 & 40 applications lodged with multiple lenders in my drawer right at this moment. Made up of Personal Loans, Car Loans, Vehicle Leases, Equipment Finance, Commercial lending, Rural lending, Owner Builder Finance, Home Lending, Construction, Top ups, Trusts, Self Managed Super Fund Investment Lending etc.. That is my desk. The other Finance Specialist here has about the same. Our Financial Planner sitting on the other side of the office can assist where needed for savings plans or protective personal insurances. Sitting next to him is our director with more than 20 years experience lending and deals with the bigger commercial stuff. For the moderators in this thread.. Im not selling or advertising anything. Just pointing out that everyone needs to do a bit of research on their lender at a branch including the staff around them, just like they need to do a bit of research on their broker and the staff in the brokerage before passing judgement. Everyone has their strengths and weaknesses. Brokers tend to get a lot of the deals that the lenders in branches cant or dont want to write and get them done. Im not saying to only go to brokers. As when I was working for the banks I was one of those lenders that would fight for things for my clients. There are decent lenders around. The moral of the story I think Im getting at is shop around. Ask a lender or broker to rattle off a scenario for lending similar to your's that they have worked before. Someone mentioned above that you should not just look for someone doing their job but offering you more. Ask how your lender/broker will be able to assist you after settlement. Do they offer any ongoing assistance or will they refer you to someone else and fob you off. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Mortgage Brokers 15Dec 10, 2009 3:56 pm Dollar I've only heard bad things about mortgage brokers so I have stayed clear of them. Hmmm. If you heard it, then it must be true. Re: Mortgage Brokers 16Dec 13, 2009 1:11 pm Dollar I've only heard bad things about mortgage brokers so I have stayed clear of them. I has a bad mechanic (who hasn't) so i never use one now. I has a bad doctor (who hasn't) so i don't go to one now. I heard bad things of lawyers (who hasn't) so i don't use any. I had a bad ........... get over it, people are people, companies are companies (you like the service from telstra ? optus ? ) , good and bad. grow up a little and deal with it, you are not in Utopia .... yet .... Find a good broker, usually friends family are a trusted source, and try. If you have no need, then don't judge what you know ZERO about. Me personally, have had 6 brokers in my property purchases. Sure there are good and bad. Obviously the one I'm with now is good. I would never have gotten the great deal I am on if I didn't use him. How would I know what 'great deals' are floating around every day of the week if I only buy property once or twice every couple of years ? A bank represents ONLY that bank, a broker represents MANY (25,35,48 ...) banks. How can you get an UNBIASED opinion from ANY bank ? They can only sell you what the colours are on the wall, NOTHING else. A broker fits the bank to MY individual situation and criteria. Not the other way round. Happy 2010 To Everyone !! Still crazy about my new kitchen, link removed by my request The bathroom is next on the list, coming soon !!! Re: Mortgage Brokers 17Jan 25, 2010 8:08 am sanjeevani - How do I calculate mortgage payments when buying a home from a family member? We are thinking of purchasing a house from my father. Instead of using a mortgage broker or bank, he suggested using a lawyer to set up monthly mortgage payments directly to him. We would still buy the house, and it would be in our names, not renting. How are payments like this calculated? Also, it seems this gives us flexibility and saves us money, but isn't as secure. What are the specific down-sides to this? Just a quick response to your posting Sanjeevani if that is OK - nothing wrong with what you are doing and you can get repayment calcultation from the followign website: http://www.infochoice.com.au/home-loans ... loans.aspx. My reponse is about your father - if he is in pre-retirement or retirement age and is looking to be on or is on the age pension this "could" have a major impact on him - so if you have not done so already before finalising this make sure you and your dad see a financial advisor and get this checked. Re: Mortgage Brokers 18Feb 03, 2010 6:35 pm Choosing the right broker is often as important as choosing the lender. Where you get the right broker, they can find a way for you to benefit and the result should be your not paying more interest on a loan than you should. Just my two cents... Re: Mortgage Brokers 19Feb 22, 2010 1:08 pm As I always say, use the broker that your friends recommend. Don't use a broker company that spends the most on advertising or make the cash offers in their ads. The promise of service quality still has to be met by an independent franchisee. Re: Mortgage Brokers 20Apr 14, 2011 10:01 pm I know this is an old thread but wanted to share my experience with a broker. We live in the Lake Macquarie/Central Coast NSW area. We have land and a construction loan that our broker did for us. He did everything that was required. He contacted the bank as required including to enquire about anything we questioned. If he didn’t answer the phone when we called he would return our call as soon as possible. Everything that had to be done was done at our place at our convenience. This included evenings and weekends. We initially lived a good 45 min drive from him when we took out the loan for the land. This was never a problem. Everything was professional. I couldn’t recommend him highly enough. It was really good not to have to have anything to do with the bank. If anyone is interested here is the website.. http://www.loanmarket.com.au/phil-harbrow/ I get nothing for recommending him. I just know I hadn't really considered using a broker, it was only that he was suggested to us by someone else. Was a great decision to give him a go as it turned out. Our house has just been lined and will be at lock up very soon (we hope). We will most definately be inviting him over for a coffee when our build is finished. Thanks Annette Building Memphis 26 with Eden Brae 31 Jan 11 Scraped |