As a mortgage broker they bring a borrower and a lender together to obtain a mortgage loan. They originate the loan while the mortgage lenders actually process the mortgage application, complete their credit checks, arrange a valuation and finally fund the credit at settlement.

Once a mortgage broker has been approached, or if they in fact approach you, they then aim to suggest loans from a panel of financial institutions, including banks and non-banks such as mortgage managers. Using a mortgage broker is not necessarily an essential part of scouring the market for the right home loan but it certainly reduces your own time involvement and most likely will make you more aware of the range of mortgage product on the market.

Finding the right home loan can be very traumatic and stressful for borrowers, this is one of the reasons why mortgage brokers are a good resource as they do the research for you, deal with the banks on your behalf and provide assistance in completing some of the paper work that is involved in obtaining a mortgage for purchase or refinance purposes.

Some of their functions may include: taking the application, performing a financial check of affordability on the figures provided, gathering required supporting documentation (payslips, assets and liability statements, loan statements (refinance) contract (purchase) submitting the application to the lender, advising of any additional requests of the lender, seeing the loan through to settlement.

Mortgage brokers are one of the largest distributors of different kinds of mortgage products. By searching for loans through a broker, a borrower receives information on cost and accessibility of credit from several lenders in a single enquiry. Borrowers who are unfamiliar with the mortgage industry, can quickly access different mortgage products by using a broker. These borrowers don’t waste time applying for loans for which they do not qualify or which really do not suit their particular circumstances.

A good mortgage broker will know the terms and conditions and general lending guidelines of a range of products offered by a number of lenders and mortgage managers. Once the mortgage broker has a sound understanding of your circumstances and your financial requirements he will filter out those loans that do not suit your needs or for which you would not qualify for whatever reason. Having determined which mortgage products should be suitable for your purchase or refinance he can make a recommendation of one or two of these to you – the ultimate choice rests with you and may be decided upon as a result of interest rate or particular features and options offered by competing mortgage product.

If you are not happy with your current loan arrangement, at any time through the life of your loan, you are able to contact your mortgage broker to ascertain if this is still the best loan for you. Mortgage brokers will are able to look into your current situation at any time and decide if there is something better for you out there. They can then start the search for the best refinance options available.