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Importance of Consulting Private Mortgage Advisors

Many people think they know everything about mortgages. The financing-105727_640truth is if everybody knew all about mortgages, there would be fewer foreclosures. There are tens of thousands of people who are paying high interest rates for loans that were unsuitable for them. Others are paying higher mortgage rates because they chose the wrong type of mortgage. Mistakes can be costly especially when dealing with large loans, a lengthy repayment period and fluctuating economic conditions. Therefore, potential home buyers need to consult private mortage advisors to ensure they do not make grave mistakes in their mortgage application. The following are reasons to consult an independent mortgage advisor:

i) Get Pre-qualified for a Mortgage

Before you can start looking for a home, you need to know whether or not you qualify. A private home loan advisor can look into your finances and perform a few calculations to determine whether or not you qualify for a mortgage and for how much. With this knowledge, you can move on with your search for the right mortgage.

ii) Identify the Best Type of Mortgage

Many types of loans exist for different types of borrowers. The two most popular ones are VA and FHA home loans. There are also special loans for first-time home buyers. While most people qualify for conventional loans, special home loans have reduced interest rates and lower downpayment requirement. A private home loan advisor can ask you a few questions to identify special loan types for which you are eligible. What you want is a low interest, fixed-rate mortgage with a zero downpayment requirement.
The mortgage advisors at your bank are there to take care of the interests of their employer, so they may not give you sufficient information about special loan types. Private advisors, on the other hand, are there to ensure their client (you) is well informed before applying for a mortgage.

iii) Help You Decide Whether to Procure a Mortgage Now

One of the main factors affecting mortgage rates is the applicant’s credit rating. If you have a poor credit score, or none at all, you may be forced to pay a higher rate of interest. A financial advisor may advise you to wait a few months or a year before applying for a loan. You can use this time to build your credit by servicing existing loans accordingly. Borrowing short term loans and repaying without default will also increase your score. A higher score can get you an affordable rate mortgage, so it’s worth the wait.

iv) Compare Mortgages

There are hundreds of mortgage lenders in any given state, so it’s worthwhile to compare the rates, terms and conditions they offer. Private home loan advisors have the resources and time to help you compare lenders and offer guidance when you’re picking a lender.

v) Home Acquisition Process

First time home buyers know very little about the process of buying a home, which is often challenging. It involves much more than just finding the right property and signing mortgage forms. A competent advisor can take you through the entire process of buying a home to make things a little bit easier for you.

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