When to hire a Mortgage Broker

Getting mortgage advice is crucial for people who want to buy a new house. If you are planning to buy a new home in the near future, then the chances of you requiring a mortgage are undoubtedly high. In order to gain access to the loan sum, a mortgage broker is essential. When it comes to procuring a mortgage, you have two options; one is to look for the right deal with banks yourself, and the second is to get yourself the right mortgage broker.

Local mortgage brokers are not as abundantly available in the market as they used to be in the past. However, there are still plenty of Mortgage brokers in the UK. To understand whether you need a mortgage broker or not, you should first start by understanding what the job role of a mortgage broker entails:

What is a mortgage broker?

In simple terms, a mortgage broker is a middleman who works by acting as a link between mortgage lenders and homebuyers. A mortgage broker‘s primary function is evaluating the finances of the borrower as well as locating the right mortgage products. They are also responsible for getting your documentation in place for completion of applications. For you, as a buyer, their main aim is to give you the right mortgage advice regarding all the doubts that they may have.

The need for a mortgage advisor- a brief

In a nutshell, you need a mortgage broker for getting the right deal. However, most importantly- they do the rate shopping for you, which is the most crucial thing to do. This is the biggest reason why you need a mortgage broker. To many homebuyers, merely getting one mortgage quote seems like work is done. They end up accepting it, assuming that it is too much hard work otherwise. The truth is that you can apply for many mortgage quotes so that you get the best deal. However, it is crucial to do this smartly; otherwise, it can affect your credit score. So, one of the biggest pre-requisites is to get a mortgage advisor who does the right rate shopping for you.

In fact, for people who do not have enough time to do all the legwork- hiring a mortgage broker is very helpful. The best part with a mortgage broker is that much like a real estate agent, they work for you and do not get paid until the loan gets closed. For this very reason, a mortgage advisor is a lot more accessible than the bank employees you must be competing.

Additionally, as a first timer who has many questions, it’s much easier to get the answers that you may have regarding a mortgage by a mortgage advisor. There are certain mortgage brokers that work on a commission basis with direct lenders- making certain products available to you that are off market completely.

When to hire a mortgage broker?

What is important to remember about getting a mortgage is that it is not an individual process. It would be best if you had others to work with you to get the right deal. In the following situations, you need to hire a mortgage broker:

1) Spending lesser is always advisable. For most people, going for mortgage advice means that they do not have enough money to waste. To ensure that you do not spend too much on applications and waste money on wrong lenders, you need a mortgage broker.

2) Conducting research for getting the right mortgage advice is quite crucial. It is always better to know what the feasible options for you are. You can start by using a mortgage calculator to get the right rates. Then, you can consult 4-5 mortgage brokers before finalizing your choice. Get as many quotes as possible from different mortgage advisors yourself.

3) Another thing is that when you have time-bound purchases ahead of you, then it makes the most sense to ask your real estate broker to consult you with a mortgage advisor. If you get a mortgage broker who is connected with your real estate agent, then it greatly increases the probability of getting the house you want. Many real estate agents are connected to different mortgage brokers in the UK. Hence, why you can ask one before you finalize on an option.

Situations when it is highly advisable to get a mortgage broker

We highly recommend you get yourself a local mortgage broker in the following situations for sure:

  1. When your credit score is low and you already have a mortgage on your head.
  2. When you have other loans to pay off, especially credit card debts; a mortgage broker would be able to give you a clearer picture.
  3. When you do not have enough time to run a thorough research and have decided on a property for sure.
  4. If your purchase is time bound and there are other offers on it too, then it is always better to consult a mortgage broker.
  5. Lastly, it is crucial to get a mortgage broker if the price of the concerned property is too expensive. A local mortgage broker would surely be able to help you get the best deal for yourself.

What to look for while hiring a mortgage broker?

As we have established, mortgage brokers are just what you need for all your real estate needs. They ensure that you get the perfect mortgage products; especially for your specific situation. However, most mortgage brokers are motivated by their success; hence choosing somebody who is more beneficial to you is crucial. Here are certain qualities you should look for when choosing the right mortgage advisor:

1) He should be responsive

Go for a mortgage broker who does not delay in responding to your queries and inquiries. It is crucial for a mortgage advisor to be professional and give you prompt responses too. It is essential to building confidence with the broker so that you can establish a connection with him/ her for later.

2) Being knowledgeable is crucial too

While the right mortgage broker can connect you with multiple different lenders, a broker also needs to be an advisor. He should know about the apt loan products so that if one does not work out for you; a backup option is available. It is advisable to ask questions about the different queries you have to educate yourself about the various situations in the market.

3) Being upfront is important too

You need to hire a mortgage broker who is not only honest but up front too. Before you finalize a broker and get convenience in the way; you should ask him about his fees and the different charges that may come your way. Over the first two-three times, you would be able to figure out the hidden costs. Also, find out if the brokerage fee for you is somewhere near the finder’s price to the lender or is it more.

4) Lastly, a sympathetic professional would be like the cherry on top

For completely smooth communication and no scams in the future, having a professional who understands your situation is essential. Just having an impressive personality is not enough if the professional does not understand how important it is for you to get a house. A supportive and friendly broker will ensure that all your doubts are clear and enthusiastically ensure you that they will get you the best deal. In a nutshell:

In our opinion, getting a mortgage broker has many benefits. It does not only ensure that you get the best deal but saves you from the hassle of consulting multiple bankers. This way, you can save not only on time but also the money you need to put up over time on a new property.