Before I had my application finalized, I relentlessly sought the help from everyone I could think of — friends, family and workmates. Unfortunately, none of them were knowledgeable enough about mortgage. Out from a crimped Sunday paper ad, I saw a mortgage broker (a.k.a. advisor) 5 blocks away from my home. Paid him a visit, and the rest was history.
IMO, a seasoned mortgage broker can help secure your finances. Why? Because mortgage typically runs for decades and a simple mistake could ruin your entire life! A mortgage broker who knows the market like the back of his wings can provide sound advice regarding your current situation.
Now, you have a decision to make whether you go for an independent mortgage broker or a mortgage lender direct. When it comes to more choices, hands up to an independent mortgage broker as he usually do not work for a limited panel of lenders, while most mortgage lenders do.
In the UK, the Financial Services Authority is mandated to govern financial and mortgage advisers. Anyone who deliberately disobey this law can be charged on the court.
Most mortgage brokers earn their living by charging you with their services upfront, commission from the sold mortgage, or ancillary services such as a real estate broker, title policy, closing agent, appraiser, credit reporting agency and so on.
Previous methods of mortgage assistance include face to face interviews, phone or email interviews. However, many brokers now extend their services online, which is really convenient for many of us. All the same, the goal is to assess truthfully your income and expense in order to draw a definitive conclusion as to how far you can afford it.
During the process, you are expected to divulge any debts and loans. Understand that this is just a standard procedure in order to help them create a better plan of action, helping both parties arrived at a win-win situation.
Possible documents needed to complete your mortgage application
In most cases, you are going to present the following documents to the lender / broker:
- Passport and national insurance number
- Contact info of your current employer (e.g. name, address, phone numbers, etc.)
- Income and expense documents (e.g. pay/wage slips, pension details, income from investments, etc.)
- Bank statements, bills, etc.
- Asset documents including deposits, account balances, etc.
- Liabilities such as credit cards, student debt, other debts, etc.
In case of a joint mortgage, all documents must be produced by all applicants. The mortgage lender will then use these documents to draw decisions such as how much money he is willing to lend to you. Remember that there are all sorts of fees to pay, so be aware of them before proceeding.