If you’re looking for a mortgage to buy your first house or to size up to a bigger property it is strongly advised that you seek the services of a mortgage broker in Ashburton. What is a mortgage broker, what can they do for you and how do you choose one?
These are all questions we will do our best to answer in easy-to-understand terms in the article that follows. Let’s begin by explaining what a mortgage broker does and how he or she works for you, the buyer.
What Does a Mortgage Broker Do?
If you want to check out the website of a mortgage broker – Pinsky Mortgages is a typical outfit and that should help you understand the situation more clearly. So, what does a mortgage broker do? There are many ways of getting a mortgage. One is to go to your bank who will have their own mortgage deals and will also know your circumstances. There are other lenders who also offer mortgages apart from your bank. However, by going directly to a financial institution you limit your choice to mortgages offered by them.
A mortgage broker is a middle man if you like. They do not offer mortgages themselves. What they do is work with you – the buyer – and a variety of lenders to find the best deal for your circumstances. This gives you more choice and a better range of options than going to the bank. It also means you do not have to shop around for the best deal, as the mortgage broker does it for you.
How Can I Be Sure they Will Get the Best Deal?
As mentioned above the core of mortgage broker services lies in getting the right deal for the buyer and their current situation. A mortgage broker will look for deals at the right level of interest as well as with lower deposits for those with a smaller budget. If you have a larger deposit, they can get you a better deal. In effect, what they are doing is matching you with a suitable product.
The broker will have strong relationships with major players in the mortgage market and will also know the deals of the moment, so will be able to go straight to the best available mortgage package at that moment. They will explain all of your options to you and present you with the best deal and it is up to you to agree to take that package or look for another. Bear in mind that a mortgage broker will charge a fee, but it is worth using them to cut out the hard work and draw on their expertise and market knowledge.
What Should I Look for in a Mortgage Broker?
We advise that, if possible, you work with a mortgage broker who is local to the area you are moving to. They will know the state of the housing market in that area and also which lenders are willing to lend in the locality. Also find one who is happy to tell you their costs upfront, as you need to budget for their fee.
You will find many mortgage brokers who work with a set selection of lenders, so ask who their preferred lenders are and why. They should be more than willing to give you reasons for using those lenders, so you can be assured they are genuinely independent.
Have a look online and in directories for mortgage brokers in the area and talk to a few before you decide which to go with, and you should find the right deal for you.