It’s a problem for home sellers and real estate agents all across Australia. You think you’ve found a buyer, but when it comes time to close the deal you find out that they haven’t been able to sort out financing so it’s back to square one.
This sort of disappointment is one that can be avoided with the right people on your team, which is why you might want to consider partnering with a mortgage broker.
What can a mortgage broker do for you?
Homebuyers have several options for sourcing the funding for their home loan, but none so specialised and personal as a mortgage broker.
A broker will sit down with your client and work out what they want, the loan-servicing capacity and what the most appropriate way to get it will be.
Part of this will be about finding the most suitable lender, but the broker will also look at the buyer’s finances as there might be ways to make them more attractive to lenders. For example, as a general rule, every $10,000 an applicant has in available credit card limits reduces their borrowing capacity by $35,000.
How does a mortgage broker benefit your buyer?
With their vast financial and industry knowledge, a mortgage broker can help your buyer get their finances in order, apply for the best loan and help them get the required funding to buy the property.
While there might be a fee associated with this service, it's normally offset by the fact that they'll find the best deal and save the lender money in the long run. (In any case, most mortgage brokers get paid by the lenders, not by the borrowers.)
On top of that, they manage all the paperwork, which is a blessing for all involved as this is often one of the stumbling blocks that buyers have.
As well as helping someone get the best loan, they also give great advice. A mortgage broker, after looking at someone's finances, will help them work out how much they should borrow ‒ not how much they can borrow.
How can a mortgage broker help those having difficulties?
While it's disappointing when a buyer can't secure funding, it's not always their fault. There are certain reasons that work against buyers when applying for funding from a would-be lender, and being self-employed is quickly becoming a problem area.
Banks can be unsure about a freelance or self-employed person's guarantee of income, making it harder for someone in this position to get the money they need.
With around 2.4 million people in Australia now self-employed, this represents a large sector of the house-buying population. If you can help them, through a trusted mortgage broker, to get the deal over the line, you'll have smiles all round.
How does a mortgage broker benefit a real estate agent?
It's simple ‒ with a mortgage broker on your side, you'll be able to close more deals.
Having buyers back out of deals because they aren't able to find funding in time is frustrating and causes you a lot more work in the long run.
However, by introducing a buyer to a mortgage broker you'll be able to give them the help they need to secure a house loan.
You'll be able to finish work on that property a lot sooner, you'll have a happy seller and you'll be able to move onto your next listing.
Having a mortgage broker as a mentor as well as a partner can also help bring your game up to speed. Being a real estate agent in Australia is a complex and ever-changing role, and the more you know about the various aspects of the job, the better you'll be able to help your clients and your buyers.
Continuing to learn in your profession is what sets great real estate agents apart from good ones. Keep up to date with what's going on in the industry by following the One Agency blog or following us on Facebook.
"It’s not what you make, it’s what you keep that counts."
‒ Paul Davies, Founder and CEO
About Paul Davies
As founder and CEO of the fastest growing real estate network across Australasia, I offer real estate professionals an opportunity to reap the financial rewards of going it alone with the security and clout of an established brand. Talk to me and my team about your options.
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