Buying a home is exciting, however the process can be very stressful getting the mortgage sorted, your finances in order and all the paperwork that comes along with it. As mortgage advisors we can help match you with the perfect mortgage and help make the process as stress free as possible. A mortgage broker will act as a middleman between you and the lender, able to sort paperwork and usually work with multiple lenders, they can compare the loans for you and present you with the best deal. Banks or Direct Lenders on the other hand will only be able to offer you their in-house loan offers, meaning to compare you will have to do that research yourself. As a mortgage broker Bill Somers understands that you’re looking for a home not a mortgage and is committed to help you get the property of your dreams with the perfect mortgage, get in touch today to find out your mortgage options.
How Mortgage Brokers Work?
Mortgage brokers have access to many mortgage products. After gathering all your information and what house you would like to buy, they can recommend the best loan to suit you. They will be able to understand the interest rate and closing costs to find any exclusive deals that may be hidden away from you. They can compare both banks and lenders to see which loan program and rate would get you the most out of your loan. If you were thinking of doing the research yourself you would have to apply with each lender or bank separately and evaluate which would be best, however without the depth of knowledge of a mortgage advisor you may not be able to understand which loan would suit you best long term. If you are still on the fence as to whether to go for a mortgage broker here are some pros and cons otherwise chat to one of our experts to see what type of mortgage would suit you.
Pros of a Mortgage Broker
Wide range of products: Able to bring in several quotes from lenders and make you a recommendation as to the best one for you.
Act as a Middleman: A mortgage broker will act as a middleman so that you don’t have to contact multiple lenders yourself.
Save you time: Help you deal with all the paperwork and get it to apply for the loan quickly and give you advice along the way.
Source your insurance: Often mortgage brokers like Bill Somers specialise in insurance too so could help you get financial cover should you unexpectedly become ill or are unable to repay your mortgage.
Cons of a Mortgage Broker
Charge a fee: Mortgage brokers may charge a fee however if this means they might find a loan that could save you thousands in the future, the upfront cost may be worth it.
How Bank Mortgages Work?
Banks or direct lenders can sometimes be a more streamlined process with everyone dealing with your loan working for the same company, that is if you meet their criteria. However, they will only have access to loans in the bank/lender’s portfolio meaning that they may have limited loan options for you.
Pros of Bank Mortgages
Simple: Offers a simple streamlined process should you meet their criteria.
Cons of Bank Mortgages
Limits your choices: You will only be offered the loan options from that bank or lender.
Pay more: Without the knowledge of what other banks or lenders have to offer you could end up paying more.
Tough lending criteria: If you go with your high-street bank, they often have tough lending criteria meaning that you may not be eligible unless you have a good credit history.
Why Use a Mortgage Broker Instead of a Bank?
If you have a good credit history, income and assets are strong, going through a bank might be just as easy as you won’t need to shop around to find a lender to fit your specific criteria, potentially saving you time and money. However, if you are not in this perfect scenario then a mortgage broker may be the way to go. A mortgage advisor will do the research for you to find the best loan to suit your circumstances, whether that is that you are self-employed, you’re wanting a buy to let mortgage, to remortgage your house or you’re a first time buyer. As well as if you don't have a good credit score a mortgage advisor will be able to offer you advice on which mortgage lender is more likely to accept you or tips on how to increase your mortgage affordability. Mortgage rates will mostly be based on your credit score, how much debt you already have, where your property is located, your down payment, and the size of the loan you are applying for. If you know that your application may have a few challenges, speaking with a mortgage broker may be best to find the perfect mortgage loan and lender to suit you.
Our experts have years of experience and knowledge in dealing with mortgage lenders and with their wealth of knowledge, they will be able to find you the perfect mortgage, get in touch today.