If you’re reading this article to discover when to use a mortgage broker for your mortgage application, you’ve come to the right place. The short answer to this question is as soon as possible. But there’s a little more to it than that, which we will discuss in more detail below.
Additionally, we will cover how to decide which mortgage broker is right for you, and the risks of not consulting with a mortgage broker during your application process.
When to use a mortgage advisor
As soon as you decide that you’d like to apply for a mortgage, you should endeavour to find an independent mortgage advisor. Knowing when to use a mortgage broker and acting on the advice provided throughout this article will save you time, money, and the unnecessary effort on your part to compare mortgage rates, and different lenders.
A reputable mortgage broker will compare the current market rates for you, possess special access to rates not available on the wider market, and can improve your chances of being accepted for a mortgage as they know the lenders criteria too.
The risks of not seeking advice
A good mortgage broker understands the requirements that must be met for mortgage approval. Without this knowledge, you could run the risk of being rejected and needing to start the application process all over again.
However, the comparatively mild inconvenience of re-applying for a mortgage is nothing compared to the input of your rejection on your record, which may detriment your future applications if found during a ‘Hard-Check’.
- What is a Hard-Check?
A hard check is a search on your credit file which is conducted by lenders to determine your eligibility for a loan. Hard checks apply to loans for mortgages, credit cards, etc, and will show on a credit report.
Your credit report will help indicate to lenders that you are likely or unlikely to pay back their loan, and can influence their decision to lend to you.
If your lender discovers that you have been rejected for mortgages previously, or they detect something else unsatisfactory through a hard check on your credit report, you may struggle to obtain a mortgage loan. Additionally, multiple hard checks can reduce your overall credit score, which will make the probability of achieving loan acceptance even less likely.
If you’re wondering when to use a mortgage broker? The answer is before you apply for a mortgage and before you find a property ideally too.
Declined loans and all other credit history will remain on your credit report for up to six years before they are annulled and hard checks will stay for two years. So it is worthwhile consulting with an independent mortgage advisor before applying.
How to Decide Which Mortgage Broker is Right for You
Now that we’ve discussed when to use a mortgage broker, we’ll cover how to determine which company to choose. There are a few simple ways to establish which mortgage broker would best suit you and your needs, which we will detail below.
- Check their qualifications
All mortgage brokers must be certified and registered with the Financial Conduct Authority to confirm they are appropriately qualified and abide by the regulations and professional conduct stipulated..
- Compare fees and services
Budget will always influence your decisions, and if you’re looking for multiple services at once, one broker may be able to provide them, whereas another won’t!
- Read reviews
First-hand accounts will be the best indicator of how your experience may be with an advisor! Referrals and recommendations from friends, family and work colleagues are another good source.
- Are you happy with the adviser you’ve found?
If you don’t feel happy with the adviser chosen then look for another. Of course, you should give everyone a chance, but if you instantly feel like something isn’t right, you might be right! Not all advisers have the same degree of independence and experience or knowledge.
How can Stuart Brown Mortgage Services help?
Here at Stuart Brown Mortgage Services, we offer professional and thorough advice on all types of mortgages, repayment methods, insurance and loan types. We work in and around Leighton Buzzard, and all the surrounding areas in Herts, Beds & Bucks and have provided over 20 years of fantastic customer service to many satisfied customers!
Contact us now if you’d like to find out more about what we can do for you and get your journey to obtaining a mortgage started!
Telephone 01525 877650 or 01442 252040
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage.