If you are planning on buying a house or a property, you may not have all the funds required to purchase it. For this, a mortgage can sometimes be the best solution.
It can save you a lot of time and money, and we don’t have to mention that most people can’t afford to buy a house without any loan.
Getting a mortgage may be the biggest financial decision you will ever make, and that is the reason you have to get it right.
The market is incredibly competitive, and you may be struggling to understand it. Don’t worry, because feeling confused and overwhelmed is perfectly normal, especially if you are new to this topic.
So, what is a mortgage? Well, to put it simply, it is a loan from a mortgage lender (usually banks or building societies) that will help you buy a property.
Usually, people don’t have the whole amount in cash, so they pay the deposit and come to a lender for the rest of the money.
The deposit is often 10% of the asking price, which makes buying a house or a property affordable for most people with a steady income.
People usually pay it off monthly, with an interest (often 2%, but it can be more or less).
Repayment terms are around 25 years in most cases, but this can also vary. Until you pay off your mortgage fully it will be secured against your property, meaning that the lender will repossess your home if you fail to repay.
When applying for a loan, banks and building societies are the usual choices. But don’t forget to consider a mortgage broker.
An expert will examine all the different aspects and offers on the market and help you make the best plan because he/she often has access to better deals than the public.
A mortgage broker can make this process more simple for you, by preparing your application materials, connecting you with appropriate lenders, and guiding you through underwriting and closing.
If you don’t want to add stress and headaches to your life – a mortgage broker is a great option for you.
They can be very helpful for first-time homebuyers, and we guarantee you won’t regret investing in their commission. If you are curious about this topic, please continue reading.
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What Is a Mortgage Broker?
They are a licensed and regulated financial professional that acts between borrowers and lenders as an intermediary. They have access to wholesale mortgage banking as well as a greater range of products than any loan officer who is limited to their bank’s offers only.
Basically, if you are a homebuyer, mortgage experts will identify loans and compare rates instead of you. Experts from ExpertMortgageAdvisor.co.uk highlight that mortgage advisors can provide reliable and accurate information, contrary to banks and the public market.
They ensure that the loan closes on time and work with everyone involved (real estate agent, closing agent, or underwriter), and they can also help with compiling application materials, verifying employment and income information, or even pulling the borrower’s credit history.
How Does a Mortgage Broker Work?
Do you want to buy a house, but you aren’t satisfied with the current mortgage rate, or you don’t have a good enough banking relationship? A mortgage broker is there to help you identify the best rates and loans from a variety of loan programs. You won’t believe how much time you can spare!
Your broker shall determine how much loan you are likely to qualify for and he/she will handle all the work for you.
You won’t have to deal with contacting the lenders individually, nor worry about complicated loan offers. Mortgage brokers are there to help you compile all the necessary documents and to guide you through the application process.
How To Choose A Mortgage Expert?
Finding a good mortgage broker that has your best interests at heart and makes you feel stress-free is essential.
Applying for a mortgage can be nerve-wracking for a lot of people, so make sure you choose someone who makes you feel at ease and start the search for your perfect broker on time. Here are some suggestions:
Ask For Referrals
It’s always best to start your search by contacting your current lending institution or a bank, or you can just ask your colleagues, friends, and family for referrals.
Research Your Options
If you have a list of potential brokers, please visit the Nationwide Multistate Licensing System Registry website to confirm the brokers are fully licensed.
You can also use this portal to ensure your future broker has no self-reported disciplinary actions.
Using platforms such as Google, Yelp, or Better Business Bureau may also be very helpful because it can be important for you to read what ex-clients have to say about each mortgage broker.
Interview Mortgage Brokers
It’s important to find a good, experienced broker, but it’s also vital to choose someone you can communicate with easily.
Recommendations are to interview at least three of them before making a decision. Here are some suggested questions you should start with:
- What does your application process look like?
- Can you provide any references?
- What are my chances of getting a mortgage?
- Which lenders do you work with?
- What do you charge?
- Are the fees paid by the borrower or lender?
- How much experience do you have?
When Should You Hire A Mortgage Expert?
A mortgage advisor (known as a mortgage broker) is an expert with in-depth knowledge of the loan market, who can choose a product that suits your needs from a range of mortgage products. There are three types of mortgage experts:
- Experts that will check the whole market for different options
- Experts that will recommend a deal from a limited list
- Experts that are tied to a specific lender of lenders
Nevertheless, all advisors must recommend the most suitable option for you and you should know that you will be protected by the Financial Ombudsman, so you have every right to complain if something goes wrong.
Mortgage experts are a great choice in many ways. At first, they must check your finances and make sure you are able to afford the mortgage.
Not to mention they often have exclusive deals with lenders, and they will complete all your paperwork so that your application will be dealt with much faster.
Mortgage brokers should recommend a mortgage that is suitable for your needs and advise you on which one you are likely to get.
Helping with the costs beyond the interest rate shouldn’t be unmentioned either. So, when you find yourself in a situation where you need a mortgage – hiring an expert is always a good idea.