Mortgage Brokers as Solution Finders
The majority of requests for mortgages are generally fairly straightforward. 60% of all borrowers get their mortgage directly through a bank, but 40% choose to use a mortgage broker even where their situation is fairly straightforward. Mortgage brokers love these clients, and view them as a slam dunk and relatively easy money.
However a percentage of clients have particular issues with their application that need a more lateral thinking approach from the mortgage broker, and it is here where good mortgage brokers come into their own. If they can find a solution for the client, even a very left field solution, then they stand to earn their commission and probably further referrals from a very happy client. In some cases the broker will need to recommend that the client takes other actions before they will be able to apply for a mortgage, and this may take several months, but in the end a good mortgage broker will still get their business.
One classic problem that can test Wairarapa mortgage brokers (link) is where a landlord has discovered that one of their properties needs expensive corrective action to remedy for P contamination, and they need to find finance to help them through the problem. This can be financially devastating for the clients and hugely expensive, and a good broker will need to be very empathetic and imaginative in dealing with their problem.
Another classic problem is separation where one partner is trying to purchase a family home or flats off another partner. Generally the problem lands at the woman’s feet, and brokers find themselves dealing with a client who has no or minimal income and an ex partner who is playing very hard ball with the relationship assets. In these situations the broker can be both advisor and coach, and can help the client take a step back and look at things in a more pragmatic way. A good mortgage broker will advise their client in such a way that the client is much better off no matter what the broker recommends.
Many clients really only need coaching and encouragement, and in this area mortgage brokers are generally very good, simply because they don’t get paid unless the client eventually get some mortgage. Clients can be procrastinators or simply too timid to take the big step of committing to a mortgage, and a competent broker will be able to assess the clients ability to handle a mortgage and then encourage the client every step along the way to actually get the application into the bank and to get it approved. They may have to both encourage and embolden the client, and in most cases they will make certain that the client knows that they can call them at any time and that the broker will call them back after a few months just to check that their mortgage is going fine.