How to qualify for mortgage loans in Melbourne?

The first and foremost thing that is examined by your lenders before mortgage loans in Melbourne is the person’s credit history. An individual must have clean records with a fair number of previous loans for successful acceptance as a potential candidate. The loans must have precise data with regular payment of the installments to be eligible for the next big loan. However, the chances diminish in case there is some discrepancy, or your loans have been overdue a lot many times.

However, there are some other essential elements as well. Let’s discuss them in detail.

Criteria essential for Mortgage Loans in Melbourne

Gathering income slips

When you are applying for mortgage loans, your lender would want to know as briefly as possible about the repayment process. In case you are a salaried individual, you need to show or deposit 3-month bank statements or payslips. But, in the case of a self-employed individual, the preliminary checking is done through analyzing the latest two years Group certificate or tax returns. Some lenders also accept trust deed, company, and trust appendix, so be sure to clear your doubts.

Neat Property Paperwork

After a successful evaluation of all other criteria, the next important milestone is the paperwork of the property to be mortgaged. For a successful property appraisal by lenders, the paperwork must have a stamped seal from the Australian Government. The plotted area must be as similar, as mentioned in the documents with no issues. There should be no fraud or illegal land ownership cases on the property or the owner. Moreover, the owner must pay regular land and revenue tax for a successful mortgage loan acceptance.

Providing an authentic reason for the loan

Although not applied by all, this step may come in handy for some private lending institutions. Most often, lenders might also ask for submitting a detailed project report. This report should include your plan for applying for the mortgage loans in Melbourne, estimated loan amount, installment details, and more. You may also require to attach all your documents along with this project form attested by yourself.

Taking professional assistance

With the always-changing rules and regulations of loan form acceptance, you will need a lot of experience and time for doing all this by yourself. So, unless you have been a banker for yourself, you will need a professional mortgage broker by your side. They are specially trained to help their customers in every step and solve any situation that might come upon them. Furthermore, as their works revolve around the financial sector, they need to have close contacts with many lenders. So, if you are not satisfied with the loan amount or conditions from your persisting lender, you can easily switch to others.

Things to be avoided before signing the loan form-

Changes to the annual income

Once you have mentioned your annual income, refrain from changing it. Making sudden changes is punishable and referred to as fraud. If the annual income has been mentioned wrong as contrary to the original documents, consulting with the lender might help.

Signing other loans

A person must maintain a good credit history with as few as loans possible. This helps create a good profile, thereby helping you get bigger loans in the future. Similarly, it is also advisable to not co-sign any other loan during this term.

Changing Bank Accounts

The lenders and loan officers need to track your expenditures from the loan account. Thus, account transfers or changing the bank account should not be done once the amount is released. This might cause tracking issues, resulting in you needing to submit more papers.

Sudden closure of credit accounts

While it may seem closing existing loan accounts can help increase credit history, the results might not be as you wish. A great patriot of your credit profile comes from your loan histories, and closing them abruptly can create imbalance. However, choosing to pay installments regularly sure has a benefit on your mortgage loans in Melbourne.

If you want to easily avail of mortgage loans in Melbourne, contact Rands Financial Services today!

7 Tips to Help You Choose the Best Mortgage Brokers in Melbourne

Most of us don’t know anything about finance yet we need its knowledge to handle property and tax related issues. However, mortgage broking could be the worst of them all. In case you have little to no idea about it in the first place, you’re digging your own grave during solo attempts. One of the easiest solutions to avoid probable catastrophes is to hire an ideal mortgage broker. But with so many mortgage brokers in Melbourne, it takes an eagle’s eye to separate the wheat from the chaff. How to do that? Here are some tips to get you started.

Complete your homework

Nowadays, finding online loan companies is very easy. You just need to fill in your requirements and click on search. However, to make sure you choose a safe and accredited mortgage broker, making a comparison is best advised. Many sites provide reviews on the online brokers, or else you can visit their official website.

Understanding their payment type

The payment type of mortgage brokers varies from one another. So, it is highly necessary to make sure that you choose the best mortgage brokers in Melbourne. And this can only be done by creating a query of their payment type. Both upfront and trail commission is the most common forms of payment. However, if your broker receives compensation through the latter one, they are not obliged to continue their services till the loan tenure.

Accessing their competency

Before hiring a particular mortgage broker, you should make sure that they have the required qualification and experience for doing so. While qualification is essential for them to deliver superior services, experience determines their service quality and duration. They should have a university degree, Certificate IV in Finance, and Mortgage Broking. Another beneficial way of finding the perfect broker for you is to ask for references from your friends, relatives, or colleagues.

Questioning Interest Rates

A good mortgage broker maintains a transparent relationship with their client. Their work involves finding the best mortgage loan for you with the best interest rates. As they continuously work with customers, private lenders, and banks, they are well-updated about all the loan processes. But, in case your broker is avoiding directly answering your questions regarding the loan, you should switch over to a new one.

Examining their communication skills

Apart from providing mortgage broking services, they should have excellent communication skills too. Termed as "Business Ethics," this skill is alone enough to know how your broker might be providing their services. You can talk to their previous clients or take one of their free consultations for determining their excellence. Using complicated words and not explaining them clearly is also one of many fraud brokers' most common tricks.

Finding their ownership structure

Many often, brokers are partially or wholly owned by big banks. Although this is a common thing, it can significantly affect their quality of services as they might trick you into indirectly employing the bank's services. Regardless of their ownership structure, a good broker will always tend to provide only what's best for their clients. So, while looking for the best mortgage brokers in Melbourne, you should make sure to hire a non-biased one.

Acquiring documents in writing

Although no broker would want to be suspended and have their mortgage accreditation taken away, the chance of being lied or duped cannot be ruled out. To ensure you are not being caught into any of their traps, it is advisable to ask your broker to provide written credit assessments. This copy can also help you access the terms and conditions and, thus, make a wise decision whenever you want. However, asking for your credit assessment reports might be chargeable.

Now you’re all set to look for an ideal mortgage broker. In case, you find it tiresome, always consider Rands Financial Solutions as your ideal bet. They have a pool of best mortgage brokers in Melbourne to serve their customers. You can leave all your worries to them and they will surprise you with a quick solution.

What are the responsibilities of a mortgage broker in Melbourne?

Finding a mortgage broker in Melbourne is not an easy task. You have to have prior work experience in dealing with mortgages to ask the right questions for the interview. But if you are a newbie, it’s important to understand their roles and responsibilities first. Here are some important responsibilities of a mortgage broker.

Serving as the Middlemen 

The first job of a mortgage broker in Melbourne is to ensure that they serve as the connecting link between the lender and the borrower. They are responsible for almost all meet-ups, negotiations, and more, which are required for completing the process smoothly. When hired, they go through the process, do the necessary paperwork, and meet other time-consuming processes. This can help finalize the deal without much effort by the lender as well as the borrower. In the case of misunderstandings, they are also liable to solve the situation with proficiency. 

Compilation of necessary documents 

As discussed above, almost all of the paperwork is done by mortgage brokers. Their qualification, experience, and knowledge make it comparatively easy to fulfill all aspects of the process in a short amount of time. What’s more? They also accumulate all the essential documents like credit reports, employment history, bank statements from the borrower. After a successful evaluation, the same is then forwarded for purchasing or refinancing the property. Similarly, their work also includes helping the customer fill out a paper or online forms for the loan without any issues. 

Anticipating Complicated Issues and Solving them

If you are in the middle of a crisis during mortgage broking, you can hire one of these mortgage brokers in Melbourne to help you out. With their vast and diverse knowledge, they can simplify the whole situation and curate easy-to-solve solutions. Similarly, you can also take consultations from them to ensure you don’t end up with a hefty loss while trying to sell out or purchase a property. You can always look for the most suitable mortgage broker in Melbourne within your budget, either through reference or online websites. However, it would be best if you were careful enough to go through their qualifications, reviews, and quality of services before hiring them.

Provide professional liability insurance

Most often, prosperous and well-known mortgage brokers offer professional liability insurance to their customers and clients. Although this policy is only beneficial for the brokers, their availability shows that customers most trust them. They also automatically have better service quality as compared to newbies or low booking agents. So, while looking for the perfect agent, be sure to go through their liability insurance details.

Help out with Housing Loans

Not only do they help compile all essential documents, but they can be useful in deciding the prefect housing loan for you too. Their working field enables them to have more connections with lenders, banks, and private lending institutions. So, hiring a broking agent equals more chances of securing the perfect loan for you. They can also help you stay safe from over-priced interest percentages and get the most benefits with lesser investment. What’s more? As they go through every term and condition carefully, they can also help you get a cheap mortgage.

Are you in need of such a responsible mortgage broker in Melbourne? Consider Rands Financial Services as your ideal bet. They are one of the well-known accountant firms of Melbourne. With more than twenty years of experience in the mortgage industry, they are well versed with every nuance of mortgage policies to offer their clients impeccable service.