Why choosing a good mortgage broker is important
Ever wondered why people value mortgage brokers so much? Here is a quick guide explaining why they are worth their weight in gold!
You’re excited. You’ve been saving your deposit for what feels like forever! In some instances, you’ve sacrificed so much to get to this point.
You’ve seen your bank who have said you can afford to buy your home and have given you an agreement in principle.
You have now found the place you want to buy. You’ve put that offer in…it’s been accepted! Eeek! It’s all VERY exciting!
Now pause. The agent wants to know who you are using to arrange your mortgage. Well, you’ve seen your bank and that’s all ok right? Well, maybe. However, have you considered the possibility of using a broker?
But brokers charge a fee? Why would I do that when I can go to the bank for free?
You’re right, some brokers do. However, their job is to search the whole of the market to find you a great deal – sometimes better than what the bank has offered you. In some instances, the bank will offer brokers better deals than what they can offer their customers so for that reason alone it is always worth speaking with a whole of market, independent broker. Also, most decent brokers will not charge you a fee until you complete on your purchase and this can be added to your mortgage.
In this current climate, with the stamp duty holiday, sales have risen through the roof and mortgage lenders are busier than ever. In a normal world, cases get looked at and “underwritten” within 48hrs. Currently, some lenders are taking up to 10 working days to look at cases which is extremely time consuming for everyone involved.
Instructing a decent, independent mortgage broker will take away the stress of you having to chase your mortgage offer as they will do it for you. They don’t get paid until you have completed on your purchase, so it is in their best interest to make sure that you get your mortgage offer in a timely fashion.
So, who do I speak with?
Speak with your friends who have recently purchased a home. They may well have used a broker and may have had good or bad experiences so can tell you who to speak with or who to avoid. The agent you purchased through may be able to recommend someone that they have had good experiences with too. Remember, you can speak with as many people as you like but pick the person who you think will do the job the best for you.
Questions to ask the broker before committing;
· What is your fee?
· When will you take your fee? Can I pay by card? Cash? Or can it be added to my mortgage?
· What is required by me up front to start the application?
· How quickly can you submit my application?
· Do I need to meet with you in person?
· How often will you check on my mortgage application?
· Do you have a dedicated sales progressor that will chase my application up?
What do you need to have prepared ahead of your mortgage application?
· Proof of ID - valid passport, driving licence
· Proof of address - valid driving licence if you have not used it for ID or utility bill dated within 6 months
· Proof of deposit – your bank statement with the money showing in there. If you have a gifted deposit coming from family or friends, then you will need a letter from them confirming that they are gifting you the deposit.
· Last 6 months bank statements – make sure that you have not missed any dates out. You may need to request this from your bank if you are unable to print them out.
· Last 6 months wage slips.
A good broker will ask for all these things up front to be able to “package” your application properly and make sure that there are no delays. Brokers that don’t request these things up front are only wasting time and causing more delays in you purchasing your new home so make sure you are ready to pass this onto your broker in a timely manner.
Although we do not have an “in house” mortgage broker, we work alongside some carefully selected, whole of market, financial advisors. If you are interested in speaking with one of them, please complete this short form and we will ask them to get in touch with you (please note, we will not pass on any personal information to anyone other than those intended for the purpose of your question).
You will need to also provide some of this information to the agent you are purchasing through and also to your conveyancing solicitor as they will need it for their money laundering procedures. For information on choosing a good solicitor, click here.