When it comes time to buy a home, you have to decide how you are going to finance your purchase.
Unless you are independently wealthy, you’re likely to obtain a mortgage from a bank, building society, or third-party lender. The question is how you will find that mortgage? A lot of buyers in the modern era are opting to go with online mortgage brokers.
Whether you go online or in person, a mortgage broker could end up being your best friend during the entire purchase process.
Mortgage brokers are a specific group of professionals with very targeted skills. They can do things for you that bank loan officers cannot, things that can make your buying experience one of the most pleasant ever.
Not convinced? Then check out these five reasons a mortgage broker could be your best friend:
1. Mortgage Brokers Are Financial Advisers
Any financial adviser offering to help you arrange a mortgage must give you qualifying advice.
This includes both bank loan officers and independent mortgage brokers. However, the kind of advice differs based on who you are working with. A loan officer will only advise you on mortgages proffered by the bank he represents.
Mortgage brokers go one step further.
Mortgage brokers advise on a variety of mortgage packages available to you. They also advise on how different mortgages fit into your overall budget. They can help you understand things like affordability, long-term payments, how to save money on your mortgage, etc.
2. You Are Protected with a Mortgage Broker
Mortgage brokers are required by law to put your interests first.
They are required to be open, honest, and transparent. Moreover, you have recourse if you believe your mortgage broker is not treating you properly. If at any time you feel like you’re not getting the best possible service, you can make a complaint to the Financial Ombudsman.
On that note, understand that mortgage brokers are required by law to state the range of mortgage products they offer.
They are also required to explain any limitations on their services. You will know right up front what a mortgage broker can and cannot do for you before you ever commit. And if something goes wrong, file a complaint.
3. Mortgage Brokers Have Greater Access
There are three kinds of mortgage brokers – tied brokers, multi-tied brokers, and independent brokers.
An independent broker is your best bet in as much as he or she has access to the entire mortgage market. An independent broker is going to be able to find mortgage packages no bank or building society has ever heard of. He or she will have access to deals that are available only to brokers as well.
4. Mortgage Brokers Have Specialised Knowledge
A bank loan officer might seem pretty knowledgeable about the mortgage market during your initial conversations.
But ask questions that go outside the loan products that officer is allowed to discuss, and you’ll quickly find that his or her knowledge is limited. That is not the case with mortgage brokers.
A qualified mortgage broker knows everything the loan officer knows and then some.
In fact, mortgage brokers have specialized knowledge that other kinds of financial advisers do not. They are specialists not only in mortgages but also the entire mortgage market. They are in tune with everything from current rates to available packages.
This is the kind of specialized knowledge you need to get the best mortgage deal possible.
5. Mortgage Brokers Can Work with Your Lender
Finally, arranging a mortgage is a time-consuming and energy-draining experience.
One of the benefits of working for a broker is that the broker can deal with your lender on your behalf. That doesn’t mean the process will not require anything from you, but it does mean you won’t have to deal with much of the stress that goes with arranging a loan.
Your mortgage broker will help you complete your paperwork correctly. He or she will communicate with the lender to make sure everything is submitted properly and on time. If there are questions, your broker should be able to answer them.
You can certainly arrange a mortgage on your own. But why would you? Both online mortgage brokers and those that run brick-and-mortar offices exist to serve you. They do what they do to help clients get the best possible deal with the fewest headaches.