Why you should speak to a Mortgage Broker
The first thing to say is obvious, if you don’t speak to someone about mortgages before you start house hunting you will not know what you can and can’t afford. If you go out viewing properties without knowing what you can afford you will most likely be disappointed, you may lose out on the property of your dreams as your finance is not in place or you may be looking at something you can’t actually afford.
Estate agents and sellers would prefer potential buyers who come to view their property to know what their budget is. After all who would want people looking around their home if they don’t even know if they can afford it?
The first part of house hunting should always be to investigate your mortgage options by speaking to a broker with access to as many lenders as possible. This way you will find out exactly what you can borrow and where you can get the best rates. The maximum borrowing and the best rate may each be with different lenders, so it’s really important to discuss your goals and aims with your broker in order to find the right mortgage for you and your individual requirements.
You will often be asked, when you register with an Estate Agent, what your financial position is, cash or mortgage. If you need a mortgage the agent will likely probe to find out if you have spoken to a mortgage advisor yet, or if you have an agreement in principle (AIP) in place. These are completely valid questions, after all they don’t want to send anyone to their clients’ house without knowing their position. A buyer should be financially prepared before registering with agents and arranging viewings.
When you come to make an offer on a property having an agreement in principle in place really is essential. Imagine if there are three people all offering on a property and two do not have any evidence they can actually buy the property. Then imagine you are the vendor of the property and have the offers presented to you by your estate agent. Which would you choose?
Not only will having an agreement in principle in place and a mortgage broker on board before offering on a property put you in the best position, it will also add weight to your negotiating position. A motivated seller who knows you can do what you say you can is far more likely to engage in negotiations over the price.
It is never too early to speak to a mortgage broker and there no silly questions. Put yourself in the best position you can before you go out viewing properties and when your dream home comes onto the market it will be you collecting the keys not someone else.
You can contact Prospect Tree Mortgages on 0800 8620 840 or visit our website www.ptmortgagesltd.co.uk to request a call back.
Prospect Tree Mortgages - Your Local Mortgage Broker