Why is it important to have a mortgage advisor when buying a house especially for first time buyers? Because they make the mortgage application process seamless and have a multitude of lenders they can remember that match your specific needs. This time last year I was packing up my rented apartment getting ready to move my current home as a homeowner. I couldn’t believe how stressful but easy how everything was from start to finish.
Buying a home and taking out a mortgage on it is one of the biggest financial decisions you will possibly ever make in your life time. And ensuring that you get, the correct mortgage for you that will serve you for years to come is so important. There are so many things I did not know about getting a mortgage last year and even now I feel like I am still learning the nooks and crannies of it all. So, why is it important to have a mortgage advisor?
Disclosure: This is a collaborative post with Mortgage Light, all opinions shared are my own.
Why is it Important to have a Mortgage Advisor?
The mortgage market is one of the competitive financial markets and it is so important you understand what you are about to sign up before otherwise its a decision that will haunt you for a lifetime. Why I think it is important to have a mortgage advisor is because they have the wealth of knowledge about the mortgage market, work with a lot of vendors, can help you choose the right mortgage for your needs and also, if they offer you wrong advise, you can complain but if you do it wrong, its only you to blame.
So, what is a mortgage advisor or adviser? A mortgage advisor (adviser) is a qualified professional who specialises in and acts as an intermediary with an in-depth knowledge of the mortgage market providing advise and connecting the lender and individuals or companies. Before I met my mortgage advisor (Luke), I always thought I could go about it by myself by speaking to my bank. So I set about repairing my credit report and improving my score and when I read about the implications if I made a wrong decision, it made me realise using an adviser for me was the best route.
There are so many reasons why it is important to have a mortgage advisor and I list a few below but this is not a comprehensive list. You can also check out Mortgage Light, a mortgage brokerage company based in Milton Keynes.
Recommends the best Mortgage for your specific needs
Until I had a mortgage advisor, I did not truly understand the complexities or applying for a mortgage and understanding which mortgage was best for me. I could have gone to my bank but that would have limited me to only one lender against their rules which if they decide to give me a not so good deal I wouldn’t know because they are my bank and I trust they offer me the best for me but we all know lenders often think about lenders first.
Review your affordability and give advise finances
Before I decided to buy my first house, I was not familiar with the term – mortgage in principle which is basically a way for lenders to tell you how much they would lend you based on the financial information you supplied during the application. I got a mortgage in principle from my previous bank based on the information I provided but when I sat down with my mortgage advisor he reviewed my finances and informed me based on everything I showed him, how much the lenders would be able to lend me which was lower than I anticipated and I set about sorting my finances. Mortgage advisors can help can your finances and give you an idea of your affordability.
Expose you variety of Lenders
Mortgage advisors are often independent brokers who more often than not have access to the whole mortgage market but remember there are some lenders who only work with a few lenders and some who only recommend the same lender. So it’s important to do your research and find those who have a variety of lenders who can lend you money for the mortgage. Even those with limited number of lenders are still better than you going to your bank (i.e. one lender) restricting yourself from receiving the best deal on the market.
Inform you of costs and features of a Mortgage beyond interest rates
Until I stared down an evaluation form from the lenders I had no idea about other costs associated with mortgages beyond interest rates. Some lenders charge you admin fees to process your mortgage application, for evaluation of your potential new home, those charges are added and many more. I was grateful that my advisor explained all the mortgage associated costs, how much I need to pay up front (if any) and what could be added to my mortgage if I wished to go down that route.
Mortgage Advisors take care of the paper work
In the few months that it took for me to buy my first property, I have used more paper than when I was an undergraduate writing my dissertation. There is so much paperwork involved in applying for a mortgage and don’t even get me started with your lawyer. What I do love is that I don’t need to worry about the paper involved in applying for a mortgage apart from reading and signing a few documents so I know what is going on.
Other reasons to use a mortgage advisor
- Repayment or interest only – depending on your affordability, the mortgage advisor can advise you on which type of mortgage you should choose.
- Fixed vs variable interest rates – they can advisor fixed rate (2yrs or 5 yrs) to take and explain what happens after the fixed period if over (variable) and next steps.
- Exclusive deals with lenders – some mortgage advisors have exclusive deals that you won’t get anywhere else but they still need to be deals that are right for you.
- Offer impartial advise – you can complain to Financial Ombudsman as they are obligated to offer you the right advise for your circumstances.
Lily says
Such great info. I definitely want to hire a mortgage advisor.
Neely Moldovan says
YES! So important to have a mortgage advisor! Its really helpful long term!
emman damian says
It actually makes sense. I should really get a mortgage advisor. Thanks for the tips!
khoingn | The Broad Life says
This is a great tip and advise! I tried to learn more about finance in general so I can deal with mortgage and stuff. However, it’s always better to have a specialized mortgage advisor to deal with specific cases and benefit from that.
Lily says
This is great advice. I am going to get a mortgage advisor Soon.
Angela Ricardo Bethea says
Quite an informative post and this is helpful for everyone of us to know. Will keep this in mind for future use.
kacielmorgan says
I’m still saving up a deposit for my first home but when I am ready to buy, I know I’d definitely want as much advice as possible.
Blair Villanueva says
In matters of financial, it is smart move to seek the advice from professional including mortgages. We need to know where can we be secured and save at the same time.
Mama Maggie's Kitchen says
Having a Mortgage advisor is really important especially when planning to purchase your own home. Thank you for sharing this.
Toni says
This is so helpful! Saving this for reference! Thanks for sharing!
Toni says
This is really helpful! Saving this for future reference! Thanks for sharing!
Warp Speed Odyssey says
Our mortgage advisor was so helpful to us and we ending up saving thousands of dollars.
Ashley t says
This is so helpful to those that are looking to buy a home. I have a few friends that I will pass this post along to.
Ntensibe Edgar says
This reminds me of what my older brother shared with me, about mortgage! It all makes perfect sense now. Thanks for sharing this!
Chef Dennis says
It is really a great idea to have Mortgage Advisor. They can help you so much when you are planning to have your own home.
Jenny Kearney says
We have a great mortgage advisor who was so helpful when we went through the house buying process.
Yeah Lifestyle says
I am not very experienced when it comes to getting a mortgage or spending money wisely so having an advisor would certainly do me good when it comes to investing money in a good house
Nishtha says
This is good information. We had to do so much research on our own for our 1st as well as 2nd house buying. I agree that buying a home and taking out a mortgage on it is one of the biggest financial decisions you will possibly ever make in your life
Rhian Westbury says
We paid a one off fee to get lifetime advice so our advisor will help us every time we come to renew to find the best deals for us. And I’m happy we had one as he suggested by adding a tiny bit more deposit we’d hit thw 15% deposit and get better mortgage rates. We’d never have known this ourselves x
Kathy says
I agree with how important this can be. This is such a wonderful post. It’s so important when buying a home.
Janeane M Davis says
My husband worked as a mortgage broker for years. A home is the largest asset most people will ever acquire and it is important to get the best advice possible when making mortgage decisibons.
Lynndee says
Great tips for those who have mortgage. it’s always great to get an expert’s advise.
Rose Ann Sales says
I couldn’t agree with you more. It’s really wise to have a mortgage advisor.
ThirtySomethingSuperMom.com says
It can be difficult to figure out these kinds of things without an expert to guide you. This is a good idea for those who are struggling to get through the complicated process.
MELANIE EDJOURIAN says
We have always had one each time we’ve bought a property. They really do help when purchasing a new home.
BRIANNA S says
I completely agree with this! I had one when buying our current home and had a great experience!
Sandra Ward says
Totally agree here! Good thing my husband was a previous mortgage advisor when we bought our home!
Rebecca Smith says
Definitely important to use a mortgage advisor as they know about mortgages much more than we do! You’ve shared some great reasons why you should use one.
motherhoodtherealdeal says
We always use a mortgage advisor. The know a lot of tips and tricks that you may not be aware of so it’s definitely been very useful in our experience.
Nikki Wayne says
It’s a really great idea to have one. Thanks for this helpful article.
Tasheena says
This post is really informative, I never thought about getting a mortgage advisor.
Tracy Isidore says
This is a great article! I literally have an appointment with a mortgage broker in 2 weeks. I feel it’s important to have someone who is skilled and works for your benefit!
Jennifer Passmore says
When my boyfriend and I go to buy our first house,, we are definitely going to be getting a mortgage advisor! I think it is a great idea!
Tara Pittman says
This sounds like a person that would help you get a good rate. I will have to look for an advisor when I buy my next house.
Kuntala says
Having a guide through the mortgage process is invaluable. There is so much to know, and having someone who already knows it all can be a huge help.
clairelomax2018 says
This is great advice, We have a mortgage advisor and honestly he is worth his weight in gold. He has been incredibly helpful and always find us the best deal x
Brianne says
This is so, so important for anyone thinking about buying a home to read. There’s a lot of information out there, and unfortunately, there are a lot of people out there who will try to take advantage of you.
Amber Myers says
I hadn’t heard of one of these before today. We never had one, but I’ll keep this in mind if we ever buy another house.
forkwardthinkingfoodinista says
I could not agree with you more on this one. some sound and sensible advice for what is an extremely important life decision x
Beth says
I didn’t realize that there were mortgage advisors now! I’ll have to let my son and daughter-in-law know since they are thinking about buying a houses in the next year or so.
Sabina Green says
I must say our mortgage advisor was great throughout and made it feel so much less stressful. Such an important decision to make.
Claudia says
I love the idea of having a mortgage advisor. Mortgages are so complicated, and you have to do so much. The more guidance you have, the better.
Emma Tryon says
This is such a great breakdown! It’s the kind of thing that is far too easy to overlook, thank you for sharing this! lots to think about 🙂
melissa chapman says
I have only bought one house and my husband did most of the advising. I had a mortgage broker but that seems like a different job than advisor.
Heather says
I appreciate you posting this. We are in the process of buying our first home and this will come in handy!