Mortgage brokers assist prospective homeowners to secure financing for a property. Even though there are lending agents at the banks who provide the same service, mortgage brokers are typically more personal and they are not employees of a bank. This is beneficial to the future home buyer because he or she will have the option of shopping for loans at several lending institutions, which will increase the potential of securing the best terms and interest rates. Normally, a bank loan consultant will have the interest of the bank as the number one priority. A mortgage broker works on a one-to-one basis with the potential buyer to provide guidance throughout the loan process. Among other duties, the mortgage broker helps to gather documents and secure titles and appraisals. In addition, the broker assists the home buyer to understand the complexities of the loan papers before making a final commitment.
Initial Consultation With a Mortgage Broker: What to Expect
A mortgage broker will evaluate the financial circumstances of the prospective buyer as a means of establishing the amount of money that he or she can borrow. The buyer will be asked about his or her income, credit history, expenditure and documentation to prove his or her financial circumstances will be requested. These documents will include bank statements, P60s, pay slips, identification cards and utility bills.
In addition, the broker will talk about affordable repayment amounts, the best possible interest rate and will attempt to get the best deal possible for the buyer. The lender application form will be perused and explained by the mortgage broker and once completed, it will be submitted for lender approval. After carrying out credit checks and ensuring that the property is actually worth the selling price, the lender will make a make offer that can be accepted or rejected by the prospective buyer.
Mortgage brokers play an essential role in the acquisition of property and potential home buyer can derive great benefits from using their services.