Top Questions To Ask a Mortgage Advisor
When you’re finally ready to speak to a mortgage advisor, you’ve probably got your heart set on purchasing a home and won’t want any unnecessary delays or setbacks. That’s why we’ve compiled a list of essential questions to ask a mortgage advisor. Not only will these help you choose the right type of advisor for your requirements, they should also help speed up the process.
How much do mortgage brokers charge?
Knowing upfront how much your mortgage broker will charge and at what point in the process will prevent any nasty surprises. Some brokers will offer free advice, where a broker arrangement fee is only payable if you wish for them to arrange a mortgage for you. Other advisors may charge for each appointment.
How many lenders do you have access to?
What you’re really asking here is how much access to the mortgage market they have. Not all brokers are created equal. Some are tied to a specific lender or list of lenders, whereas other brokers are ‘whole of market’ which means that they have broader access to the market.
There are also specialist mortgage advisors who can help with some slightly niche mortgage requirements, such as looking for a mortgage with bad credit.
What documents will I need, and how long will it take to process the mortgage application?
Mortgage advisors are there to guide you through the process, so they will ask you for the right information as you go along. However, if you ask from the get-go what documents you need to successfully complete a mortgage application, you will be one step ahead of the game – and it will give you time to find and access everything you need.
What type of mortgage would be best?
There are many types of mortgage on the market. That’s where a mortgage advisor can help – they can cut through the noise and pinpoint which ones you would be eligible for and which ones are best suited to your situation.
How much am I likely to be able to borrow?
Knowing how much you are likely to be able to borrow on a mortgage will help determine what sort of property you can reasonably expect to buy.
You will want to know how much the repayments will be each month, so you can budget accordingly. A good mortgage advisor will take the time to calculate your affordability, budget all the expenses and can even perform stress tests to ensure you’ll still be able to keep up on repayments if your income was to reduce or pause for a time.
How much deposit do I need?
The deposit is how much of the property you will be expected to pay upfront with cash. This is typically between 5% – 25% of the purchase price. The rest will be covered with your mortgage loan. Knowing how much deposit you require will help you plan your finances to get you ready to move.
How much is the interest rate and will it change?
An important part of your mortgage repayment, it’s worth familiarising yourself with the current interest rates and how much it’s likely to change over time.
Can you pay back a loan early? How easy is it to remortgage?
This question is one you can ask once you’ve found a mortgage deal that you would like to pursue.
If you are in the position to pay back your mortgage loan a little earlier than planned in the future, you might want to know if this is possible and whether there are any early repayment fees involved.
You may also want to ask how easy it is to remortgage. Circumstances change, and a mortgage that is right for you now might not be so perfect in five years time.
We hope this article will help prepare you, and give you a list of questions to ask a mortgage advisor during your initial consultation and beyond. If you’re searching for a mortgage broker located in Peterborough with a personable touch and 80 years’ combined experience, Agentis can help. Contact us today to book your free consultation with us.