Should I engage a local mortgage broker?

So currently I am looking at purchasing a property out of state. My question is, should I engage a local broker, or any mortgage brokers will do? Is there any advantage having a local one over the other.

 

Brokers can work from anywhere, there is no advantage to having one local to the property you're purchasing, local to YOU might be beneficial but it makes no difference to outcomes, skill set does.

 

It's not like getting your hair cut. The broker could be anywhere

 

Doesn’t need to be local. My broker lives in a different state. For me it’s far more important that they know their stuff, AND they respond in a reasonable time frame (even if that response is “I’m smashed at the moment can this query wait until next week”).

Regards,

Jason

 

As mentioned above - you can use any broker you like. They don’t have to be located in any particular part of the country.

Having said that - there could be a small benefit to using a local broker such as local knowledge with other allied real estate professions. They might be able to recommend local solicitors, building inspectors, buyers agents etc. Although - it’s not hard to find that info yourself either.

Cheers

Jamie

 

Like others have said, your broker could be anywhere, however I would caution just phoning ANY broker if you are planning on building a portfolio. I'd suggest contacting some of the brokers on this forum, as they specifically deal with many investors and see who feels good for you in your situation, and go from there. From my experience, most of the Brokers here are used to dealing with people with large portfolios and are quite switched on and much better than those without similar experience.

 

I would avoid a broker. The online lenders such as tic:toc are offering rates that are much better than any discounted rate a broker will try and shove you from the big 4. 0.5% interest rate difference on a $450,000 mortgage can save you over $200 per month, is a broker really worth that much? I think not

 

YES you should providing they are competent. Part of it is intangible, a lot of it is tangible. There is more to investing than merly getting funding.It is about the journey Getting networks can be more important. Firstly, for a prosperous strong vibrant community you should support your locals, Who are you going to go to, tosponsor sporting clubs, school fundraising, service clubs projects etc. Secondly to get in the loop. especially when buying local, for networking benefits, your local broker should have a close relationship with local accountants bankers developers, builders . sellers, have insight, know where and what may be for sale, have info on recent sales and state of the market etc.. I prefer to discuss possibilities and whats going on over over a beer in the pub, especially as he likes to pay. The remote ones I have tried to use who promise the world have turned out to be clueless and couldnt get deals done.

 

If you know what you're doing and exactly what loan you want and can get, then I potentially agree.
However if you don't and get a couple of rejections because you're applying for the wrong product, this could really cost you in the end.

Looking at the fixed rates that TicToc offer, they're not that different from other lenders that allow brokers either.

 

I have found the online lenders very tedious had poor product and time consuming cheapest isnt best, still need big hassle off getting all the documents and info only to be told I need a Job. Much easier and better to tell the broker to do it and get a loan from a choice of lenders and a suitable one. Where are you going to for your next loan or hasnt the online lender considered that ? The most expensive finance can be the finance you dont get.

 

Like @spludgey said, IF you know EXACTLY what you want and you qualify for it, you COULD save some money, however there is great risk in doing this especially if you are planning on buying multiple properties. This could turn out to be a very false economy.

 

Haha good one! I suspect the comment comes from inexperience and it's $187.50 per month difference not $200
Might be relevant if you just have one property and chasing the lowest rate with no need to cash out for future investment purchase, structuring etc.
Online lenders are pretty useless for anything other than very basic stuff 80%LVR or less.
Lowest rate doesn't equal best product