You have narrowed down your search to find your dream home, and now you are on the search for the best mortgage loan to put those keys in your hand.
One particular way to do it right is using a mortgage adviser who can walk you through the loaning process from start to end.
You have most likely heard the word “mortgage adviser” from the realtor or friends who have bought a property. But what is a mortgage adviser, and what does he do that is different from a loan officer at any loan company or bank?
Since you embark on the process of getting a home loan, you’ll first have to make your mind up which type of mortgage adviser will be befitting you and your current position.
There are 3 types of mortgage advisers to consider, and each offers its own specific advantages to its clients. These 3 types are multi-tied, tied, and the whole of market or independent mortgage advisers.
This article will discuss the responsibilities and duties of each type of adviser so that you can decide which type is best for you.
Tied Mortgage Adviser
Most of these individuals work with only one company or lender and recommend you the options advertised by that company or lender alone.
Tied advisers are usually used by the lending company, but there are a few cases where they work for that particular company as a self-employed contractor who also takes other types of projects to make some extra money.
Using this type of mortgage adviser radically bounds the number of options widely available to you. Although they may be qualified to get you a very affordable deal from the lending company, it’s usually better to have more options once you get into the home loan process.
This is one of the typical types of advisers that are usually tied to one or specific loan providers, this means that you’re only going to be advised or recommended the mortgage offers that those banking institutions or companies he works with are able to offer.
Quite often, an adviser of this type receives a commission based on the particular type of mortgage loan he arranges for you.
This type of adviser is either connected directly to a group of loan companies or one loan provider. So they’re much more limited in the type of mortgage loan that they can offer.
On the other hand, though, their close connections to loan companies often mean they can offer you exclusive incentives and deals, but they will not have the ability to offer you specific options you may find elsewhere.
Multi-Tied Mortgage Adviser
These types of advisers are quite similar to tied mortgage advisers, but they do offer options from more than one loan provider.
These advisers work with a number of different firms to offer a range of term lengths to work within and prices to consider. Although this is a lot better than working with only one lender, there are still some limits in using a multi-tied mortgage adviser. They’re only allowed to assist the lenders that they’re hired by and no one else.
Most of these advisers will work with you to get you the best offer because they do work on commissions and get a specific percentage after every profitable deal.
If you’d like to have a broader array of available mortgage options, you might like to consider the advisers that can represent a variety of options, which is usually found to be appreciably profitable than that offered by the particular lenders.
The panel of loan providers that an adviser represents is usually likely to differ, from a few to a great number, and you may want to check this when discussing with the specific adviser.
Independent or Whole of Market Mortgage Adviser
If your budgetary necessities require you to find a multitude of options, then opting for a ‘Whole of Market’ Consultant or an Independent adviser is the best choice for you.
As the name indicates, ‘independent advisers,’ these individuals have no limits on what loan company or lender they recommend to you. They’re paid with a fixed rate instead of a commission rate from the lenders they represent and are able to get you the most beneficial option of a mortgage available no matter what your financial or personal issues may be.
To get to the greatest advantages from the available options in the mortgage industry, you might like to consider the independent advisers who’re completely free and competent to refer you to lending solutions available today. You will have a much better pool of home loan options available, and because they are free of ties to any lending company, they can provide you an utterly unprejudiced recommendation.
It is worth noting that this ‘ whole of market’ advisers never tends to deal with each and every option available. To keep their name alive in the market ‘whole of market’, they do have to deal with a sufficient amount of options to be the representative of the whole market.
Getting the Most Out of Mortgage Advisers
You should check third-party reviews and research prices.
Typically, people believe that there is no need to search for prices while working with a trusted mortgage adviser because they are already searching for you the best option, but, the rule of thumb is, searching is better for you because you have no idea how much the mortgage adviser you are working with is charging, and you will probably talk to a couple of advisers to know what is the market rate of a mortgage adviser.
This will clear the doubt whether he is charging a slightly higher percentage from you to get paid more for your mortgage loan.
Make sure the mortgage adviser values you as a respected client, can complete your financial transaction within a certain period of time, conveys proficiently and can give protection to your interests. And if you are properly vetting who you work with, you should not have any issues.
There are many legitimate reasons to consider a mortgage adviser, but that does not mean you should just retain the services of only one and be carried out with it. With that said, the credit scoring rules enable you (or your adviser) to apply for as many mortgage loans as you want within a short window of time.
Therefore, it is a smart idea to at least get a couple of quotes from loan companies on your own before deciding to use an adviser. Plus, like any responsible person, make sure you research the options and rates of some advisers in your area – check references, ask relatives and friends, and read testimonials.
The thing is that you ought to check out all of your mortgage options before making the decision. Of course, a relatively small difference in mortgage interest rates can mean 1000’s of financial savings over the time of a 30-year mortgage loan.
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