Anyone who is currently interested in buying a home and does not have enough money to buy it in cash knows that they face the tedious task of obtaining a mortgage. But, visiting a mortgage broker before going to banks is the optimal way to get the best mortgage.
Normally, people visit their local bank branch to see what the bank will offer. Additionally, they might look on the Internet to find the best deals from banks in the market. However, this is not the smartest approach to get the best mortgage.
The ideal way is to consult a local mortgage expert; for example, if you are interested in buying in Essex or the surrounding areas, then mortgage brokers in Essex can offer in-depth knowledge of the local lending market. Home buyers often miss the opportunity to get the best mortgage on the market if they do not consult with a mortgage broker.
The economic reasons
Mortgage brokers have agreements with many banks and lenders, and know perfectly well which banks are giving mortgages, under what conditions, and to what profiles of clients: if you are self-employed, if you have an excellent profile, etc. They have all the up-to-date information at their fingertips.
If you use a mortgage broker, you will have access to cheaper mortgages than if you try to do it on your own. The reason is simple: brokers that contract more volume of mortgages with banks and other lenders have special agreements with several entities to obtain more discounts than those that a normal consumer can obtain in a branch on your own, even if it is your own branch. This can amount to thousands of pounds of savings throughout the life of the mortgage.
- Advice: a mortgage broker can explain in detail the process of applying for and obtaining a mortgage, in such a way that you understand the steps to be taken and the documentation that the lender will request. This will save you money and a lot of time.
- Recommendation: they will ask you about your socio-economic situation and the housing you want to buy, and provide a detailed explanation of your real possibilities of accessing a mortgage given the current market conditions.
- Alternatives: they will give you alternatives if – based on the data provided – your initial profile does not fit with what banks demand: need to provide more cash, possibility of guarantors, mortgage on appraisal value against the value of purchase, etc.
- Management: finally, they can manage your mortgage application with multiple banks, avoiding the work of making multiple photocopies, making appointments with banks, and repeating the entire process of explaining your needs and situation multiple times to multiple potential lenders.
Tips to find a mortgage broker
Mortgage brokers are regulated, and must be completely transparent in the communication of their services and the fees that may apply. It is worthwhile using them, since most of them collect their fees only if they obtain the mortgage that you are looking for and you go through with it.
In other words, if they advise you and look for several mortgages, but finally you find a better one on our own, they should not charge you anything – and this should be in writing at the outset – so you lose nothing, and you can only win by using such a service.
You should compare several brokers, since there are intermediaries that only have agreements with two or three lenders, and commissions are high (3-4% of the loan amount). You should choose the broker that gives you the best advice at an appropriate price, so as not to pay the broker more than what you save with the mortgage they provide.
Using the services of a mortgage broker makes sense; even if you search for a mortgage on your own as well; in the end, you will secure the best possible mortgage deal possible.