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When you’re getting started on your home-buying journey, you might be unsure of the benefits of a mortgage broker, and why you might opt for a mortgage broker for your loan. A mortgage broker acts as a “middleman” between hopeful borrowers and various lending institutions. Mortgage brokers work independently to connect you with the right lending solution. Two in three home buyers use a broker, but if this is your first mortgage you may be wondering why that is. We’ve listed the top benefits of using a mortgage broker for you to consider. 
Mortgage brokers are home loan expertsAt A8 Financial, we make it our business to know the ins and outs of home loans while staying up to date with the latest trends and insights in the industry. We’ll help you to understand how different loans work, and advise what may best suit your needs. Mortgage brokers care about assisting you to achieve your financial goals. More than that, we’re legally bound to provide recommendations that are in your best interests. 
Access to a variety of lendersWhile a bank can only offer its own products and services, mortgage brokers have access to a variety of lenders and solutions. Mortgage brokers have access to home loan products from a wide range of Australian lenders. This gives you more choice while saving you time and effort – no more having to trawl through multiple bank websites to compare products!
Tailored solutionsFinding the right home loan is more than simply picking the option with the lowest rate. It is also very important to select a loan with the right features for you – supporting your longer-term property strategy. Mortgage brokers take the time to understand your financial situation and needs so that we can provide you with a tailored solution.
Save time and effortApplying for a mortgage can be a lot of work, especially if it’s your first home and you’re unfamiliar with the process. Mortgage brokers manage the home loan process from application to settlement for you, and will guide you through every step to make the process as smooth as possible.
The powers of negotiationYour mortgage broker will advocate for you to secure attractive terms and rates for your loan; something they are highly trained to do, armed with the power of negotiation. Elements of your loan such as interest rates, terms, and other conditions, will be negotiated to ensure you get the best deal possible. 
Support and guidance in your homebuyer journey and beyond As mentioned, mortgage brokers work in your best interests and are there to support and guide you through the home loan process. This assistance doesn’t end the day you find your dream home either – your mortgage broker will continue to ensure you’re getting the best deal on your mortgage, returning to your lender every six months to see if you can be offered any benefits such as rate reductions. 
There are many benefits involved in collaborating with a mortgage broker. If you would like to learn more about these benefits, book an appointment with our team of experts or call.

What pre-approval actually means?
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​What pre-approval actually means and what it involves. How do you get “pre-approved?” and does this mean you’re approved for a mortgage? It’s normal to be uncertain about financial lingo such as this, but it’s important to be aware of what pre-approval actually involves and what it means for you in your home buying process. 
We’ve compiled a list of the steps involved in the pre-approval process, so that you can be armed with knowledge during your journey:  

1.Gather the necessary documentation In order to be pre-approved, you will first need to supply all the necessary financial documentation. You will normally need to provide proof of income, such as tax returns, to demonstrate your ability to meet mortgage repayments. You will also need to provide documentation showing your assets, including bank statements and any investment accounts. Preparing this information in advance will help to ensure your pre-approval process goes smoothly.

2.Check your credit score Being aware of your credit score is always good practice, but it’s paramount when applying for a home loan. Your credit score will impact your likelihood of securing a loan, and will then also help to determine your loan terms and interest rate and should be checked frequently.

3. Research lenders and loan options Finding the right loan for you will depend on various factors. You can research lenders yourself, or you can see a mortgage broker for an expert opinion. Mortgage brokers have access to a range of lenders, and can help you to determine which is the best match for you. 

4.Check property taxes and transfer duty in your state Depending on where you are purchasing property, you may be liable for land tax and/or transfer duty (also known as stamp duty). It is best to check what property taxes are applicable in your state, so that you can have a realistic budget when making decisions. We’ve published guides on property taxes and transfer duties for Queensland, Victoria, and.

5.Get pre-approved  Now that you’ve prepared your documentation, researched lenders or found a mortgage broker, and checked your state’s property taxes, you’re ready to seek pre-approval. This process involves submitting the necessary documentation for review. Your financial situation will then be assessed, and the lender will determine if they are willing to lend to you – and how much. You will then receive a pre-approval letter, which will provide insight into how much you can borrow, and other details of your pre-approved loan.

6. Check the terms and conditions  Once you’re received your pre-approval letter, ensure that you examine the terms and conditions of your loan. Check the mortgage type, interest rate, duration, and any other conditions listed that must be met before you’re awarded final approval. If you have any questions about your pre-approval conditions, seek professional advice.

7.  Your dream home If you’ve been pre-approved, and are happy with your interest rate and other terms of your loan, you can now begin to search for your dream home or future investment property. In the property market, pre-approved buyers are often viewed more favourably, so you can shop with confidence. 

The term pre-approval can be a bit confusing for first-time home buyers, although it is not a guarantee of a loan, it is an important step in the process and will arm you with confidence while shopping for a property. The home loan process involves a fair bit of research and planning, but with the right preparation it doesn’t have to be a daunting endeavour. Our team of expert mortgage brokers can help you with your home loan needs.