When Do You Need A Mortgage Broker?

The world of finances may be complicated, tricky and unclear to most regular people. There’s no shame in the fact that you don’t know something, but it’s essential that you ask questions. Financial decisions are not to be taken lightly. Especially when bigger things, like mortgage, are involved. When you think about buying a new home, particularly if it’s your first one, you need to do a lot of research to be absolutely sure that you’re doing it right. That’s why so many people decide to hire a mortgage broker – they simply look for all the help they can get. 

Who is a mortgage broker?

Ideally, a mortgage broker is someone who is there to help you on your way to buying your own property. He or she should be familiar with your situation in order to present you with a suitable offer. They know the market well and are able to compare various lenders’ deals to find the one that will best suit your needs. 

In case your situation is unusual in any way, a broker will know which lender won’t have a problem with providing you with money anyway. 

They simply should take care of you and make the whole process less stressful. Also, they sometimes can get you better deals than you would ever be able to get on your own. 

Mortgage brokers can earn money by charging the lenders they recommend or by charging you a fee (usually between 1-2%, but make sure to always ask). While it may not sound appealing to you to give away your money, it’s actually a better option, as brokers who charge the lenders may be biased towards those who pay them.

When do you need a mortgage broker?

It’s especially helpful to hire a good mortgage broker if your situation is unique in any way. For example, people with irregular earnings (e.g. self-employed, freelancers) can get some precious advice from such specialists, as their income is difficult to calculate and not all lenders will be eager to cooperate, as well as those potential borrowers who decide on a different kind of mortgage, for example, an intergenerational mortgage. It can also be a good idea to turn to a broker if you are planning to raise a mortgage on one property to pay the deposit on the other.

However, even if you are in a textbook kind of situation, you can still ask for help. Maybe you don’t feel well with finances, you are under the impression that you can’t really explore the whole market on your own or you simply have very little time to explore the possibilities on your own.

Apart from that, brokers are the best option for investors whose financial situations differ from these of regular people. They very often aim for protecting their profit margins and they care even more about the lowest possible rates.

Mortgage brokers are now legally obligated to present you only with the offers that you are actually eligible for; otherwise, they will no longer be authorized to work as brokers and they will suffer legal consequences. So while you have to be cautious and be able to identify if a broker proposes you a whole range of offers, you don’t have to worry about being talked into something you can’t afford.

Be sure that you’re choosing the right mortgage broker

Any financial decision you take should be thought through very carefully, especially when it involves bigger amounts of money. If you choose the right mortgage, it may be the perfect beginning of a new life, so make sure that you know what you’re doing. Do your research and don’t be afraid to ask questions. Better safe than sorry.