Mortgage brokers will often get approached by people that struggle with banks and so they need to be thinking outside of the box.
If a mortgage broker thought like a banker and only provided the options that the bank has then many applications would not be approved.
What Do We Mean By Thinking Outside The Box?
The banks have spent the last few years automating the processes including the way they assess a loan application. The person at the bank will work through an online form and the computer will then either approve or decline your application.
Someone working for a bank may really try to help, but they are limited by the systems that they use and the lack of options that they have.
Many of the bank staff that process loan applications are also more data entry people than actual lenders and do not understand how to make a deal work even when so often the applications that we see banks decline can be approved if they are just presented differently – better!
As mortgage brokers review any application – the easy ones and the hard ones.
Some Loan Applications Are Easy
Of course many loan applications are quite easy.
The people have good deposits (or equity), good income and have a great credit record.
These people will often go directly to a bank to ask for finance and they will get the finance approved.
Maybe the bank will give them some reasonable advice and hopefully the interest rates will be competitive too.
These people may not see the need for mortgage brokers.
They do not see why you should use a mortgage broker as the bank seem okay.
Even so, it costs nothing for these people to speak with a mortgage broker and by doing so they may get some advice that could save them thousands of dollars over the term of their mortgage.
Some Loans Are Hard & People Need Help
Of course, some loan applications are not so easy – they are difficult loans and as experienced mortgage brokers we love the challenge.
These are the loan applications that really test the experience of a mortgage broker.
A mortgage broker will often need to be thinking outside of the box to find ways to get the more difficult loans approved, and then also need to ensure that the loan offer is the best possible option given the situation.
As brokers we will look at what is the best option – a bank, non-bank lender or finance company… or a combination.
Lending with a bank is often the preferred option, but sometimes it not possible to get the difficult loans financed with the banks. It should almost always be the goal but sometimes the situation dictates that another option is needed at least to start with.
Sometimes the application will mean that a long-term loan from one of the non-bank lenders is the best option.
Other times it might need short-term finance until things are ready for a long term option with either a bank or non-bank lender. We refer to this as bridging finance as we are just bridging the gap until we are able to get the better solution.
Lets Get Thinking Outside The Box
If you have a situation where you are not sure what the best options are, or even where to begin then contact us as we are experiences and would love to help.
Sometimes this means we can arrange the finance for you, but other times it’s just a matter of looking at what you already have and maybe adjusting a couple of things.