When you’re in debt, one thing that can seem out of reach is buying a new car

You might not have the credit required to get auto loan financing, and managing monthly payments might put your other debt repayment plans at risk. However, being in debt is no reason to drive a car that’s breaking down or unsafe. There are plenty of good, affordable used cars out there, and late model used cars have a lot to offer in terms of reliability, gas mileage, safety features, and performance. If you’re in the market for a pre-owned vehicle, here are a few tips you can keep in mind to make your shopping experience fruitful and stress-free.

 

  1. Set a budget

 

The first thing to do is figure out exactly how much money you’ll be able to put towards this purchase. Be realistic, but bear in mind that the more you can invest in a new (used) car, the more reliable it is likely to be and the less you’ll have to pay for maintenance and repairs in the near future.

 

  1. Choose your car

 

Next, pick a make and model that fits in your budget and has the features and options you need. If this is going to be a family vehicle, make sure it has room for all the passengers you’ll be carrying, and if you have a baby or toddler, verify that it will have the space and hardware to allow you to safely install a car seat.

 

  1. Find sellers

 

There are lots of online car buying directories that can help you located used vehicles from reputable sellers. They can also provide you with reviews, videos, comparison tools, and other site features that can help you in your purchasing process.

 

  1. Check the vehicle history

 

Once you’ve found a specific car you’re interested in, get a vehicle history report. You’ll want to know if it was in any major accidents or has had any significant repairs done on it. The internet has made it easier than ever to get a comprehensive history report on any car, so don’t skip over this important step, and don’t let a seller talk you out of requesting it.

 

  1. Take it for a test drive

 

Just because you’re not at a dealership doesn’t mean you can’t take the car for a test drive. Make sure it handles properly, feels right, doesn’t make any strange or ominous sounds, and that you feel comfortable and safe driving it.

 

  1. Negotiate the price

 

Don’t be afraid to give the seller a counter offer and try to bring the price down from what they’re asking for it. This is expected. Also, don’t be afraid to walk away from a deal and keep trying if you don’t feel like you’re being offered a good value for your money. There are always other cars.

 

Once you’re satisfied with the deal, make sure the title paperwork is processed correctly and enjoy driving off in a pre-owned vehicle that’s now all yours!

mortgage brokers

How do mortgage brokers get paid?

Home loans provide their services cost-free to interested debtors and are instead compensated by lenders. We delve into some of thedifferent commission structures that mortgage broker obtains to help you ensure that you’re receiving affordability and not engaging with a broker who may have a conflict of interest.

Exactly what is a mortgage broker?

A mortgage broker functions as an intermediary between debtors and lenders. They help clients find a loan that suits their situation by researching, contracting and negotiating for bargains concerning the client.

What activities will a mortgage broker do?

  • Assess your borrowing requirements. Agents should also determine your serviceability potential across different situations.
  • Identify home loan products that fulfil your requirements
  • Negotiate in your stead for the best deal
  • Provide support for just about any questions you have many throughout the process
  • Organize the paperwork to secure the house loan

How are mortgage brokerages paid?

Mortgage broker gets a commission payment from lenders. This payment will vary concerning the lender as well as how big is the transaction.

Upfront commission

The upfrontcommission is the payment a broker will get for introducing the home loan customer to the lending company. It is normally around 0.3-0.5% of the loan value. For example, for a $850,000 mortgage, a 0.3% commission rate would total about $2,550 in the broker’s pocket.

Trail commission

Trail percentage is a recurring percentage that is computed based on the rest of the loan amount every year, which is paid to them monthly. Some lenders offer a continuing fee of 0.1-0.2% predicated on the rest of the value of the house loan. This commission payment is paid for the broker providing ongoing service to your client.

Claw back of commissions

If a person refinances the home loan suggested by their mortgage broker to some other lender in just a certain timeframe, then your initial lender can take a clawback commission payment from the broker. It is because it could be costly for a lender to set up a fresh loan for the customer, and the lender loses away if the client then decides to release the loan.

A few mortgage broker  in these situations has opted to spread the fee to their clients. Thisis not against the law in Australia so long as they follow the right guidelines.

It’s estimated that only 1-2% of total loans are subject to claw back every year, and therefore it does not represent a major issue for the broking industry, but it is still important for brokers to educate their customers about howclaw back provisions work.

Issue of interest

Because most mortgage brokers get commissions, an issue of interest can occur in some cases. For instance, an agent might promote a certain home loan with a lender that offers an attractive commission over one which offers a lesser commission, regardless of whether or not it is the best product to your requirements. That is why it’s important to speak to your broker about their fee structure.

What are my rights as a client of any mortgage broker?

The National Consumer Credit Protection Function (NCCP) aims to protect you as a customer of the mortgage broker by ensuring that the broker will not recommend an ‘unsuitable’ loan for you. This means the mortgage broker must carefully consider your needs and requirements, together with your finances, to make sure that you will be able to service the loan without enduring financial hardship. See more this site: mortgagebroker247.com.au

Build Up Your Credit Status with Quality Guidance

We operate a finance counseling business.  Much of our service is aimed at giving people and families advice and suggestions on how to cope with bills and expenses.  And nearly half of our advice focuses upon telling people how to manage credit card debt.  For some reason, no matter how much they hear it, folks still tend to operate as if a piece of plastic is a license to spend as if they have an unlimited source of money coming in.  At the same time, we can often take pride in having helped some folks manage to not just get their debts in order but to smartly manage their funds.

 

Our most recent customer was a couple who had managed to not just get out of debt, and to qualify for a loan they used to refurbish their home.  They did the improvement to give the wife needed additional closet space to properly store her clothes and shoes.  Fortunately, she got many of her classiest and most stylish wardrobe items from New York and Company, taking advantage of significant discounts of $25 and $50 off on items purchased with  Groupon promo codes.  Of course, she wasted no time taking advantage of these and other deals currently offered in her effort to substantially expand her wardrobe for the upcoming fall season.  He was accustomed to her classy wardrobe and stylish appearance, but things had become so cramped he was forced to store his suits in a closet in a separate room.

The solution they agreed upon was to expand the master bedroom suite of their home by adding a larger walk-in closet.  This increased the amount of space, but required a contractor perform substantial structural modifications to the home.  She was enthralled with the idea of having a master suite closet with enough space for both of their wardrobes, plus shoe storage.  And she eagerly agreed to the project.  We were happy to assist them in getting the home improvement loan, since they’d managed to get their finance situation in order.  However, we advised them to keep a close record of the money spent on this project, since the significant savings achievable by using Groupon coupons for discounts and savings might be too tempting.

8 traits of a good mortgage broker 

As a first time homebuyer, one of the best assets you can have on your side is a good mortgage broker. However, it can be extremely overwhelming to choose one! The market is saturated with mortgage brokers and this article will help you to identify and choose a quality mortgage broker.

What makes a good mortgage broker?

Since mortgage brokers became more common place around two decades ago, this question has been a frequent one! While regulations and licensing has changed, the ultimate goal of a mortgage broker is to help provide the homebuyer with choice at little to no cost out of pocket! Here is a list of the top 8 traits of a quality mortgage broker to help you choose from the many mortgage brokers out there.

  1. A good mortgage broker is licensed – As of July 1st, all Australian mortgage brokers must be licensed by the ASIC (Australian Securities and Investment Commission) and expected to                adhere to the standards of the NCCP (National Consumer Credit Protection). This isn’t a quality of good mortgage broker as much as it is a requirement.
  2. A good mortgage broker is a member of a professional industry association – A mortgage broker through the MFAA (Mortgage and Finance Association of Australia) is required to sign and comply with a code of conduct and meet strict guidelines regarding their education. Many MFAA mortgage brokers are also members of the FBAA (Finance Brokers Association of   Australia).
  3. A good mortgage broker comes recommended – Most mortgage brokers will tell you that the majority of their new clients come from personal recommendations. Ask your friends and family for their recommendations and experiences!
  4. A good mortgage broker goes through a thorough interview process with you – A good mortgage broker wants to get to know you and will sit down with you to find out what your goals, financial situation and plans are.
  5. A good mortgage broker utilizes a large panel of potential lenders – A quality mortgage broker is more loyal to you than to a lender. After the initial interview, your broker will look through the lenders they have accreditation with to find the best match for you personally.
  6. A good mortgage broker is an excellent communicator – Especially for the first time homebuyer, the process can be stressful! The good mortgage brokers will stay in frequent contact during and even after  purchasing a home.
  7. A good mortgage broker will disclose all costs and fees upfront – As the majority of mortgage brokers  work on commission, there more than likely will be little to no out of pocket cost to the homebuyer.
  8. A good mortgage broker sees you as a lifelong customer – After working with a quality mortgage broker, you’ll feel like you’re part of the family. Visit this site for more information : mortgagebroker247.com.au

When looking for a good mortgage broker among the many qualified mortgage brokers out there, look for the above characteristics. This will help you really find a mortgage broker with your best interests in mind.