Applying for a mortgage is a stressful and time-consuming process no matter how many times you move house.
Hiring the services of a professional mortgage broker could make the whole process a lot less confusing but what exactly can they do for you?
What do mortgage brokers do?
A mortgage broker will help simplify the mortgage process by finding you the best possible mortgage deal and guiding you through the application process.
In the past few years, the process of acquiring a mortgage has become increasingly difficult and without the sufficient preparation and documentation you may not receive an offer on your own.
Some mortgage brokers work on behalf of a mortgage lender but in order to get the most unbiased service it is recommended that you always choose an independent adviser.
Key responsibilities of mortgage brokers include:
- Explaining the many different types of mortgages.
- Advising on what mortgage type would be best for you based on your financial situation.
- Finding you mortgage broker who can offer you the best deal.
- Gathering information that will be required by the lender during your application, such as credit information and bank statements.
- Using this information to secure you the best rate.
- Submitting this information to the lender and acting as a middleman between them and you until a mortgage offer is secured.
- Advising you on whether you should agree to the terms set out in the offer.
Why use a mortgage broker?
There are many reasons why you should always consult with a mortgage lender before applying for a mortgage.
Some of the most important reasons include:
Industry Expertise
As if the mortgage industry wasn’t already complicated enough, the market is constantly changing. Interest rates and deposit requirements are constantly fluctuating and the best type of mortgage to apply for can change on a regular basis.
It is a mortgage brokers job to monitor these changes, so you don’t have to. They will be able to explain any changes to you in an understandable way and advise you on the best way forward based on the current situation.
Interest rates are far from the only cost associated with getting a mortgage and administration fees, credit reports, and service charges all cost money. A mortgage broker will not only ensure you aren’t paying too much interest on your mortgage but also that lenders are not trying to overcharge you in the application process.
Access and Connections
Some mortgage deals are only available through mortgage brokers who can use their access to a range of lenders to secure you the best possible deal.
They will also be aware of reputations within the industry so will be able to advise you on which lenders are the most reliable and will not try to overcharge you.
When looking for the best broker option you should ensure that brokers offer whole-of-market access, meaning they can negotiate with any lender on the market in order to secure the best deal possible for your needs.
Convenience
Could you secure an appropriate and affordable mortgage on your own without t the help of a mortgage broker? Possibly, but it would take a huge amount of research, time, and money to make sure you got it right.
Most people simply don’t have the time to become an expert in the mortgage industry just to move house, and they shouldn’t have to.
Mortgage brokers are trained professionals with an expert knowledge of the mortgage industry. By letting them search for deals, complete paperwork, and negotiate with lenders you will save a huge amount of time and for many people in full-time employment, using a broker is simply the only way they can possibly get through the process.
Fee-Free Mortgage Brokers
That all sounds great, but how much is it going to cost you? Well luckily for you there are actually some brokers that don’t charge a fee from you at all.
Naturally, the still receive a fee for negotiating the deal but this comes from the lenders side and not out of your pocket. If you can find a fee-free broker, it will save you a significant amount of money and stress at a time where your finances may already be tight.
It is Worth Using a Mortgage Broker?
Unless you are extremely confident with the mortgage application process or a financial expert you should always use the services of a professional mortgage broker.
They will take a lot of weight off your shoulders and reassure you that when you find your dream property you will have everything ready to make an offer with a mortgage in place.
Missing out on a purchase due solely to not having administration in order would be devastating and by consulting with a mortgage broker you can make sure this never happens.