Buying a house can be complicated enough, but trying to sort out which mortgage is best, what the different rates are, etc, can be like trying to pick your way through a minefield. That's why using a mortgage broker is such a good idea, and one that more and more homebuyers are starting to do.
Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today's buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.
Why a Mortgage Broker?
A mortgage broker is a certified professional and someone who has spent years training to become an expert in mortgages. Regulated by the Financial Services Authority (FSA), they have a strict set of guidelines that they must adhere to. This includes the information they give you, and the ethical decisions they make regarding any financial advice they provide to you.
Because of this, they are usually independent, which offers the potential home buyer the benefit of unbiased advice. Even if a mortgage broker belongs to a company, you should still be offered a greater choice when it comes to the type of mortgage you take out, as well as whom you take it out with. Compare this to banks and building societies, which usually try and arrange your mortgage solely with them, and the extra cost in using a broker are more than worth it.
What does a Mortgage Broker do?
Because they are such experts in their field, a mortgage broker can offer a host of services that you may not have received otherwise. As well as their advice, you can also expect a broker to:
Find the mortgage that's right for you
Access to thousands of different lenders nationwide
Provide a "mortgage calculator" that will help you decide how much you can borrow
Explaining the different mortgages - fixed rate or variable, self-certification or ad credit mortgage, etc
These are just some of the basic services that a broker can offer you. They can also help you arrange the best survey companies to use, close your paperwork, arrange legal fees and advice - pretty much anything connected with a mortgage, a broker can help you with. Additionally, a mortgage broker can also advise you on what additional costs you should include - for example, mortgage protection insurance and why you need it.
One of the biggest reasons many home buyers are put off using a mortgage broker is because of the extra cost involved - after all, they're already spending thousands on the property itself. However, the extra cost can often be included within the mortgage itself, and even if it's not, the few hundred pounds you spend on a mortgage broker's expertise could save you thousands in the long run.
If you're looking to buy a house soon, or even re-mortgage an existing property, speaking to a mortgage broker could save you more than you think, and is well worth the time and cost involved.
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Got a Question? Ask.
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Frequently Asked Questions
Mortgage problems
By: pmeuk | 22-07-2008
Hi David
My question is ...I am a new resident of this country and only have one years worth of tax returns and show a loss because I own my own business and my wife has poor credit including a bankrupcy. We have $300,000 to put down on a property and are looking to finance about 2-250.000. We are having trouble finding someone to finance us, is there anyone out there that can help?
Mortgage
By: will | 22-07-2008
Is there a program that help pay your mortgage?
Morgage
By: Helena | 22-07-2008
Yes, i am trying to find a different morgage and our credit is not good. its fair, is there any one out there that would be able to help us.
Mortgage co. refuses to help -even take a full payment split in half.....
By: Grace | 22-07-2008
Where or to whom may we turn to for help??? My husband has cancer. He is in treatment. I am his sole caretaker. Our mortgage co., Aurora in Colorado told us they could not help us with ANYTHING since we were current at the time..........they said we must be 90 days past due before we would be eligible for any assistance. We offered to pay 1/2 of the payment at the first of the month and 1/2 at the end. They refused us.
They would not take the payment's being split!!!!!!!!!! Now, at 90 days, we applied as they told us to-----for help--------from them- NOW, THEY tell us we do not qualify for any of their program's! What is this company- a "stomp someone in the ground" and take their property??????????
My husband and I have been in the banking/mortgage business for 30 years each. I have never heard of anything like this!!!!!!
Please give us some direction. We are under so much pressure with my husband going back on chemo this Wednesday. Thank you.
M/Mrs. David T. Tarbox
Foreclosure help..
By: cede | 21-07-2008
i am facing foreclosure. I am behind several months on my loan. I have a lot of money saved away to play catch up. I have about 5 months and i think i am behind 9. I have called the mortage companay and they have not gotten back to me about a repayment plan as of yet. I have not recieved any papers from any attorneys either. I really want to keep the home and can afford it..what should I do?
Where can i find a florida satisfaction of ...
By: susan | 21-07-2008
where can i find a florida satisfaction of mortgage form
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