Why you need to consult a mortgage advisor before going to the bank

by Alice Thomas Consultant

11 Reasons To Use A Mortgage Advisor » Stephanie Murray Mortgages

Anyone who is currently interested in buying a home and does not have enough money to buy it in cash knows that facing the tedious task of taking out a mortgage loan is normal. We recommend visiting a mortgage advisor before going to the banks, as it is the optimal way to get the best mortgage.

The normal thing is that the first thing we do is visit the director of our branch, to comment on our intentions and to tell us the offer that the bank can give us. Additionally, we go online to find the best offers from banks and ask friends to find the best mortgage on the market. However, this is not the proper order to get the best mortgage.

The ideal thing is to first consult a mortgage advisor, if possible, free of charge. Normally it is not done, either due to ignorance of its existence or the help it can give us or because we think that its true interests will be misaligned with ours. Something totally wrong.

Some clients often miss the opportunity to get the best price on the market - or at least the best conditions for their needs and economic profile - if they do not consult with an advisor, or if they do it after "kicking" several financial entities on their own.

The economic reasons

Although this statement may seem interested, let me explain why I consider that, always thinking from the client side, it is a reality and a benefit:

- In case you live in London, the advisors like mortgage brokers London have agreements with many banks, they know perfectly which banks are giving mortgages, under what conditions, and to which customer profiles: if you are self-employed, immigrant, if you have an excellent profile ... they know and they can find the best mortgage for your profile because it is their job and they have all the updated information

- If we go hand in hand with the mortgage advisor first, we will have access to cheaper mortgages than if we go on our own. The reason is simple: the advisers who contract more volume of mortgages with banks have special agreements with several entities to get more discounts than a normal consumer can get in a branch for his account, even if it is his own branch. We are talking about thousands of dollars of savings throughout the life of the mortgage

But I insist that the important thing is to go first with a guarantee advisor, since he usually has “non-competition” agreements with the entities. What does this mean? Simply that in order not to step on the clients, the first one who arrives with a person interested in a mortgage is the one who will work with the client from beginning to end. That is, if a buyer asks for a mortgage on his account in a certain bank, a file is opened, an offer is made and he is blocked by the bank as his client. The advisor could have gotten a better offer earlier for having agreements, but after the client has first spoken with the bank, he will no longer be able to do anything because when he introduces that client to the bank, the entity will tell that he is under their care because they already made him an offer previously. It is how the system works to avoid stepping on customers and that there is an order.

Therefore, if an individual goes to a branch directly and requests the loan, and then goes to an advisor, he will not be able to do anything, since once the request has been submitted directly to the bank, the advisor cannot present it again. That said, not all advisers have these preferential agreements, so we must be careful with those who promise "siren songs" at the first exchange, without knowing the profile and needs.

Added reasons

The above are economic reasons to seek a mortgage with a personal advisor. In addition, there are also more reasons to count on your help

1) advice: an advisor, as its name suggests, must explain to us in detail what the process of applying for and contracting a loan is, in such a way that we understand the steps to take and the documentation that banks will ask us for. This will save us money and a lot of time going back and forth to the branch with pending papers.

2) recommendation: it will ask us about our socio-economic situation and the house we want to buy and later give us a detailed explanation of our real possibilities of accessing a mortgage given current market conditions. They should also tell us our strengths and weaknesses, so that if we later want to go directly to the banks, we will know what they are going to ask us and how to argue specific situations, such as a recent job change.

3) alternatives: they will give us alternatives in the event that - depending on the data provided - our initial profile does not fit with what the banks demand: need to provide more cash, possibility of guarantors, mortgage on appraised value versus the value of purchase, etc.

4) management: finally, we can manage the request with multiple banks, avoiding the work of making multiple photocopies, making appointments with banks and going through the entire process of explaining our needs and situation multiple times.

Mortgage advisors are regulated and registered, and must be completely transparent in communicating their services and the fees that may apply. They are worth using, since most of them commit to their clients to collect their fees only if they get us the mortgage we are looking for and sign it

In other words, if they advise us and look for several mortgages, but finally we find a better one on our own, they should not charge us anything - and this must be sent to us in writing - so it is a service that is worth taking advantage of from the principle because we lose nothing and only win.