When should you start talking to a broker? (2024)

When should you start talking to a broker?

The short answer: as soon as you've got a property goal. The longer answer: whether you're scoping out your options, have a long-distance goal in mind or you're ready to enter the property market (like, yesterday)… chances are you'll benefit from having a chat with a mortgage broker.

At what point should I see a mortgage broker?

Contact a mortgage broker if you're having thoughts about buying a home, but need guidance on things like your purchasing power or your budget. Brokers can help you determine if you're in a good place to start house hunting, or if you need to brush up on some things like your credit score or debts.

How early should you speak to a mortgage advisor?

It's important to see a mortgage adviser at the start of your mortgage journey whether it's your first mortgage or you're looking to re-mortgage.

How early should I talk to a lender?

When's the right time to talk to a mortgage lender? You should have your first conversation with a mortgage lender six months before you plan to buy a house.

When should I reach out to my mortgage broker?

It's never too early, a broker is the first person you should talk to. Even if you're just starting to think about home ownership, why not include an appointment with a broker or two in your first steps? A reputable broker will be happy to answer a few questions in an informational interview.

What not to say to a mortgage broker?

10 Things Not To Say To Your Mortgage Broker | Loan Approval
  • 1) Anything untruthful.
  • 2) What's the most I can borrow?
  • 3) I forgot to pay that bill again.
  • 4) Check out my new credit cards.
  • 5) Which credit card ISN'T maxed out?
  • 6) Changing jobs annually is my specialty.
Mar 10, 2023

Is it best to talk to mortgage broker or bank?

Brokers can help if you want to shop around without the hassle of contacting multiple lenders on your own. A good place to start is a bank, especially if you have a good relationship with your financial institution.

How do I start a conversation with a mortgage broker?

Getting ready to chat with a mortgage broker
  1. Your important details. ...
  2. Brainstorm your goals. ...
  3. Prepare some questions. ...
  4. Will you offer a range of different lenders and options? ...
  5. How many lenders do you work with? ...
  6. Where to from here? (AKA what are the steps to buying a property)

What to do before speaking to a mortgage broker?

Obtain a copy of your credit report and review it for accuracy. If there are any discrepancies, address them before meeting with a mortgage broker. Additionally, be aware of your credit score, as it can influence the interest rates and loan options available to you.

How many mortgage brokers should you talk to?

Contact at least three lenders on your list. Don't stop with just one lender! By exploring your options with multiple lenders, you get more information about your options and get a sense for which loan officers you might feel most comfortable working with.

Which lenders ignore 6 month rule?

Thankfully, not all lenders observe this 6-month rule. Virgin Money, Mortgage Trust, Paragon and a number of other specialist lenders will allow day one remortgages, but with one important caveat: they only allow the remortgage value to be the price paid for the property within the first 6 months.

What question is a lender not allowed to ask?

In addition, although a lender can gather factual information about some things (your gender and marital status), under the Fair Housing Act and the Equal Credit Opportunity Act, it can't discriminate based on race, religion, color, age, marital status, sex or national origin.

Which loan should you accept first?

Subsidized loans don't generally start accruing (accumulating) interest until you leave school (or drop below half-time enrollment), so accept a subsidized loan before an unsubsidized loan. Next, accept an unsubsidized loan before a PLUS loan.

Do brokers know if you will be approved?

A broker can usually tell a client within 10 minutes whether they have a chance of obtaining loan approval. Brokers have access to bank loan affordability and serviceability calculators, which show clients' potential borrowing capacity, they can also quite often get a better price deal than advertised rates.

Is it quicker to use a mortgage broker?

Time-saving: Getting a mortgage appointment with your bank can take up to 2-3 weeks. Mortgage brokers usually offer quicker appointments so you can get started on your home-buying journey sooner.

Is it easier to go through a mortgage broker?

Working with a mortgage broker can potentially save you time, effort, and money. A mortgage broker may have better and more access to lenders than you have. However, a broker's interests may not be aligned with your own. You may get a better deal on a loan by dealing directly with lenders.

Why not to use a broker?

It can be a significant additional loan cost rolled into your loan. A broker might not have as much negotiating power as you might with a lender with which you have an existing relationship. Some brokers could favor working with certain lenders, leaving out others that may offer you a better deal.

Is it okay to talk to multiple mortgage brokers?

The answer to this question is yes you can use multiple brokers to act on your behalf, but the problem is, it might not help you get the mortgage you want and, in some cases, can prevent you from getting a mortgage altogether.

Is it worth talking to multiple mortgage brokers?

Advice for applying to multiple mortgage lenders

Applying to several lenders could save you a considerable amount over the life of your loan. You might also consider letting lenders know you're comparing offers since this could encourage them to give you their best deal upfront.

What is the interest rate today?

Current mortgage and refinance rates
ProductInterest rateAPR
30-year fixed-rate6.842%6.924%
20-year fixed-rate6.729%6.823%
15-year fixed-rate6.129%6.274%
10-year fixed-rate5.828%6.028%
5 more rows

Why do realtors prefer local lenders?

Realtors have several reasons for preferring to work with local lenders. Here are a few: Market familiarity: Local lenders possess extensive knowledge of the local real estate market, allowing them to provide valuable insights and guidance tailored to the specific region.

Is it better to get a loan from a lender or a bank?

Bank lenders typically offer better rates and the added security of working with a well-established lender, but loans from private online lenders are often quicker and easier to get. The best option for you depends on your specific circ*mstances.

Does it cost money to talk to a broker?

Brokers are typically paid a commission by a lender each time they connect a borrower to their product. So, it's quite rare for borrowers to be charged a service fee by their broker. If a broker happens to charge a fee for their services, they should let you know before you begin working with them.

What do I need to know before talking to a broker?

Before you see a broker, think about what matters most to you in a home loan. Do you simply want the lowest cost loan? Do you want specific features, such as being able to make extra repayments? Thinking about this beforehand will make the conversation with your broker easier.

Who is the first person I should talk to about buying a house?

To put it simply, it's best for first-time buyers to get in touch with a real estate agent first before looking for a mortgage lender. Getting a loan is important, but keep in mind that your mortgage is only part of the transaction.

References

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