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You are going to buy a new home, and you need a home loan. How do you start? Choosing a reliable mortgage advisor may become challenging for you. But there are some factors that you can consider to find the right one.
Sure it is easy to find advisors, banks, lenders who will be eager to go after your loan application online. But you need to find the best mortgage advisor if you want the process to be done right. Hence, we have listed the questions that’ll help you find the right advisor. Read on to get started.
How to find the best mortgage advisor?
First of all, you will need to understand the difference between a mortgage advisor and a lender. While some mortgage advisors may do the job for both the lender and the advisor, others may only be responsible for recommending you the right plans. There is a slight difference between both roles. An advisor works as a broker and should have a Certificate IV in Finance and Mortgage Broking, they help you find the right lender and a suitable mortgage program. On the other hand, a lender is responsible for lending you funds for the home loan and determining whether you are eligible for the loan or not. Check Top Five Benefits of Best Mortgage Lenders.
It works the best if you find a single individual who works as an advisor and lender as well. Research all your resources like the bank, online advisors, local credit unions, and more to find the best one. Compare their requirements, terms, and rates and then decide on the best home loan advisor. They can also help you when you want to refinance your mortgage.
Before you settle with a broker, make sure that they satisfy specific criteria. You can either ask them questions or check their websites for the same. Generally, there is a difference between UK lenders and brokers, and many home buyers go straight to the lenders. But it is essential to find an advisor so that you get the right advice for the home loan. Here are some essential questions that you must ask from an advisor.
What are your fees?
Mortgage advisors have a lot of sources of income. They define their fees based on different circumstances, which means your fees may differ from their other clients.
You will want to check if the advisor meets your budget. Also, ensure that the advisor isn’t biased towards any lender as they may recommend a not-so-suitable advisor because he is paid. If a lender is paying your advisor, it may be a red flag.
Which type of loan is best for me?
The best mortgage advisors would start with understanding your requirements instead of suggesting a bulk of loan options. You would not want to get any loan recommendations that do not meet your needs. Choose an advisor who gets all the information before throwing all kinds of loan suggestions. Ask your lender about the best suitable loan for you and the prospective pros and cons. Also, find out how each loan will be ideal for your condition.
What costs will I need to bear?
Apart from the advisor fees, you will need to bear a lot more expenses. Ask your advisor about these costs. These may include lender fees, third-party vendor fees like pest inspection reports, appraisals, credit reports, recording fees, taxes, and the title policy. Your home loan advisor should include the estimate of these costs in the Loan Estimate document.
Remember, you are not limited to these questions. You can get a clarification on many more things, like the down payments, prepayment penalty, etc. You should ensure to ask all the questions you are doubtful of, even if they seem childish. It will only lead you to find the best advisor.