Why Homebuyers Need a Mortgage Advisor

mortgage adviser with clients

If you want to purchase a home, you may need to borrow money to do so. But many people taking out loans do not realize how beneficial it is to work with a mortgage advisor. From getting the best deal to advocate for you, working with an advisor can make the process easier.

Guiding You Through the Process

Lending regulations and the real estate market change frequently, so it’s critical to have someone who keeps up to date on things. For example, many homebuyers try to put a 20 percent deposit down. However, specific changes mean you may be able to put as little as 5 percent down. An advisor can tell you if that’s the best financial decision for you – if you put just 5 percent down, you may need to borrow more and end up paying more in interest. They can help you explore your options. For instance, if you have a life insurance policy, they may suggest selling it. If you want to know if selling a life insurance policy is the best option, estimating the policy’s value only takes seconds.

Each bank has different preferences and rules, and having an advocate means you do not need to research them yourself. They can find the right bank and look into the advantages and disadvantages of various loan structures and lenders. Even if you aren’t a first-time homebuyer, you might not be familiar with the terminology used, especially since it changes so quickly. It is helpful to have someone who can sort through the terms for you. That way, you’ll understand the process better so you can make a more informed decision.

Advocating for You

When it comes to buying a home, not everyone has your best interests in mind. Realtors want to sell homes, and the bank wants to make money. But mortgage advisors want to help you get the best deal. Many receive salaries instead of commissions, so they’ll offer the best advice, not what makes them the most money. Sometimes, potential buyers cannot purchase a home yet, and advisors can usually tell you that before you apply. If the application gets rejected, it might adversely affect your credit score. They might give you tips on improving your financial situation so you know when you can purchase a home. Advisors work with many banks, so they have enough experience to negotiate. Plus, they might be able to access competitive interest rates, so you get a better deal. Their experience means they’ll usually know which banks have the best rates.

Finding the Right Loan

When it comes to choosing mortgages, most people consider only the interest rate. But the loan structure is sometimes even more critical. The right structure ensures that you pay it off as soon as you can, preventing you from paying so much in interest over a longer time. Sometimes, banks pass on fees, like application fees. But a mortgage advisor might be able to waive or reduce these expenses. Or you might get other benefits, like cashback.