So you want to get a mortgage! Without a doubt, buying a property of any sort is most likely to be the most expensive thing you purchase in your lifetime. So, it makes sense that you do your homework and know exactly what you are getting into before you think of applying to lenders for a mortgage, even before saving for the deposit.
Putting your money into real estate, whether you are buying your first home, a buy to let property, or looking to flip a house to make a quick buck involves a lot to understand and think about before you actively start looking for a mortgage.
MORTGAGE READY CHECKLIST
- Can you afford to save for a deposit?
- How much of a deposit can you afford to put down?
- How is your credit history?
- Are you debt-free?
- Do you have a good credit score?
- Can you realistically afford to pay a mortgage on time and consistently until it is paid off?
- Why are you buying the property?
- What is the property for?
- Is this really what you want to do?
Once you have decided you are doing this for the right reasons, the next step is to get your finances in order to help you be in the best possible shape for applying for mortgages.
When you are ready to move forward, it can be hard to determine which mortgage is right for you. This is where a mortgage broker comes in.
ISN’T A MORTGAGE BROKER JUST AN EXTRA FEE TO PAY?
Sure, the services of a mortgage broker don’t come cheap. Of course, you will be required to pay for the service they provide. However, once you fully understand and are aware of the job they perform, you may find the pros outweigh the cons when it comes to finding the right mortgage for you.
Finding a mortgage broker who is on the same page as you and has your best interests at heart can be hard to do. Ask around family and friends for recommendations or search online and check reviews from current or previous clients of mortgage brokers to get the right person for you and an idea of what to expect in terms of fees and timescales.
Since the housing crash of 2008, the practice of mortgage brokers has come under scrutiny. This, of course, raised the question of if they were acting in their own best interests or that of their clients. However, this can be true of many different sectors and isn’t limited to one industry alone.
THE ADVANTAGES OF WORKING WITH A MORTGAGE BROKER
Having a hard time finding the best mortgage deal out there for you? It can be a minefield out there when it comes to finding the best overall mortgage. Some mortgages may appear to be lower in cost and fees up front, but is this true of the whole of your repayment term? Getting an Altrua mortgage means your mortgage broker has found you the best overall deal possible on your mortgage.
Having someone else do the leg work for you can be invaluable, especially if you are short on time to sift through all the information yourself. An experienced mortgage broker means that they know what is out there and where to avoid. Knowledge and experience will give them the best head start when it comes to payment terms, clauses, and restrictions of certain mortgages and mortgage providers.
With this type of experience comes the ability to gain mortgages that might be available via other routes. Many providers rely on mortgage brokers to bring in suitable clients. This means you will be privy to some deals that aren’t advertised elsewhere. Building on this relationship can be so beneficial and will give you a head start over going it alone and trawling through all the different mortgages and lenders out there.
On the subject of knowledge and broker – lender relationships – are you up to date on all the key terms, phrases, and clauses, etc. commonly found in many mortgage agreements? Spending hours going through contracts and the small print can leave you feeling even more confused than when you started. A broker will be familiar with the ins and outs of a great many mortgage terms and conditions. They can explain it to you in a way you can understand so you can be sure you haven’t missed anything or misinterpreted anything.
One more benefit? We have mentioned that taking out a mortgage comes with fees. You will be paying out fees for a myriad of different reasons, not just your broker but arrangement fees, application fees, and appraisal fees. In some cases, your broker may be able to waive some or all of the fees for you. Something you may not be able to take advantage of yourself.
TOP TIPS FOR USING A MORTGAGE BROKER
- Make sure their goal is the same as yours – to find you the best mortgage possible for the best price that works with you.
- Read reviews and do your research to make sure you choose the right person to work with.
- Shop around and don’t rely on the mortgage broker to get the best deals. Sometimes, with a bit searching, the same mortgage could be available to you directly.
- Check if there is a fee payable to the broker from you or from the lender. Know this up front so as not to be surprised when you get the bill once the work is done.
- Check your quote is final and not a ‘good faith estimate.’ Taking on a mortgage with estimated terms could result in the final terms being different, and you have a change in expected payments and other terms.
- Remember: taking out a mortgage isn’t a one size fits all deal. Make sure you are confident in your terms, and you can afford the repayments before submitting paperwork and committing to the mortgage.
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