There are many reasons why people need credit or to borrow money. And there are many different types of people as well.
We have looked at our clients recently to get a feel for the type of people who tend to use mortgage brokers – and they tend to fall into few categories.
- People who don’t know what they don’t know – so first home buyers or first time investors who are seeking information and help to guide them through their biggest asset purchase. Often they are receptive to ideas on how to set loans up, strategies to repay loan back the most effective way that suits them. They also are happy for additional information like – how to deal with the real estate agent, what sort of offer should we make, who is a good conveyance, who is a good pest & building inspector – endless questions that need answers.
- Self-employed people – who have to work out what income they can use for a lender to give them a loan. It can be complicated if you are not used to looking at financial statements, profit and loss statements, ATO assessment notices etc. Some banks use different income – 2 years average, last full years financials – and depending on deposit you have – down to 3 months bank statements even if you have just started.
- People who have had a “glitch” in their past credit life. Missed repayments on credit cards, personal loans even home loans can all end up hurting clients when it comes to getting a loan approved. Banks have an automated credit scoring system and often ask for bank statements to show past history and confirm your profile. There are some lenders who will manually assess credit applications – and these lenders are often better for clients who may have some minor hiccups to overcome. There are also lenders who will lend to those with more major credit impairments – which allows some clients to stay in their own home
- Professionals who just want to know they are being looked after. Let’s be honest we are all busy and often we just don’t have time to be visiting banks and rate shopping – especially when you can go to one place and get it all done for you – with extra advice and assistance along the way. Often we can get a better rate that a client can source themselves – and we work with clients to best suit their own circumstances – be a home visit after hours, during work or at our office.
As you can see there are plenty of reasons why people use a mortgage broker. It is a personal choice and of course you need to find one you can trust and connect with. We are all different – you need to be comfortable with who you want to deal with for now and into the future.