Find Out If You’re In The Right Mortgage For Your Situation
Our Mortgage Advisor provides homeowners with customized recommendations about the type of mortgage you should be in based on your unique circumstances.
How it Works
- You provide general information about your current mortgage and financial goals.
- We will search our network to find the mortgage that makes most sense for your situation and goals.
- We’ll then provide a detailed recommendation if we think you can do better than your current loan.
Let’s Get Started
More About How Mortgage Advisor Works
Our Mortgage Advisor provides homeowners a place where they can go to answer the one mortgage question they actually care about having answered: “What Mortgage Should I Be In?” We’ll learn about your financial situation, your financial goals, and about what type of mortgage you’re currently in, run that through our advisor algorithm, and return a simple to understand recommendation about what type of mortgage is probably best for you.
This is the resource that homeowners have been looking for. No longer do homeowners need to launch into complex google searches to find out what type of mortgage they should be in. Just answer a couple questions and we’ll show you what mortgage we think could best fit you, your needs, and your goals. Of course, you’re the only one who totally knows your financial situation so it’s up to you to pick the right mortgage, but we want to try and help get you the best possible information with which to make that decision.
Mortgage Advisor 101
Getting a mortgage can be a stressful proposition. The U.S. is a nation of homeowners, with 65 percent of American domiciles owned by the people who live in them. Yet buying a home is one of the most stressful experiences you may go through in your life.
How can you make it easier? Using a mortgage advisor could be one of the most important steps to take. A good advisor can help take some of the stress out of buying real estate, but should you use one?
There are pros and cons to using a mortgage advisor. There’s less stress but there are also fees to be paid that you won’t have if you go direct to mortgage lenders.
In this article, we’re going to take a look at the good and bad points that come with using a mortgage broker. Keep reading and find out how you can make buying a home easier.
What is the Difference Between a Mortgage Advisor and a Broker?
Before we begin, let’s take a look at what a mortgage advisor is and how they can help you. There’s a key difference between a mortgage broker and a mortgage advisor, so don’t search for “mortgage broker near me” just yet.
A broker and an advisor both help you find the best mortgage options for you, but they go about it in different ways. Being a mortgage broker requires a higher level of training than being a mortgage advisor. The training for the latter often relies more on sharpening customer service skills than financial literacy.
This doesn’t mean that an advisor can’t help you though: they will often have started out working at a bank before progressing to being a financial advisor and specializing. An advisor will often work for one specific bank, while a broker will often work independently. Both may also be free at the point of service, but receive a commission from a certain mortgage lender if you go with them.
Pro: A Mortgage Advisor Can Help You Manage Finances
One of the best reasons to hire a mortgage advisor is if you aren’t too sure about how getting a mortgage will affect your finances. Whether the advisor works for a company or is independent, it is in their best interest to make sure that you find a mortgage you can afford.
The last thing mortgage lenders like banks or a building society want is for you to be unable to pay your mortgage. This wouldn’t reflect well on the advisor and would also require the bank to repossess your home and sell it, which is a huge headache.
Thus, mortgage advisors will take a look at your finances and a wide range of different mortgage products that are available to you. They will then try and find you the right mortgage for your financial situation, meaning a mortgage that you will be able to keep up the payments on.
If you go straight to the lender, you may land yourself in financial trouble if you don’t understand the ins and outs of mortgages and the various fees that may apply.
Pro: Paperwork Will Be Dealt With Quicker
There is a veritable mountain of documents that you need if you’re hoping to get a mortgage loan. If you’re filling in the paperwork yourself, it can take a very long time to get through it all. You will also need to educate yourself on certain legal and financial terms if you’re going to fill them incorrectly.
Using a mortgage advisor can cut down on the paperwork that you need to do. You will be able to give the advisor your documents and let them take care of the rest. This also means that it will be done correctly the first time around, thanks to their specific expertise.
Pro: Advisors Can Find You the Best Deal
We’re all looking for the best mortgage deal that we can get. Yet if you go straight to mortgage lenders, you might be missing out on some deals that are exclusive to advisors. This is most often the case with advisors that work for a lender, but independent advisors can sometimes find you deals too.
Some of these deals could be found by you but would require a tremendous amount of time and research. Others are exclusive to the advisor in question. If you’re looking for low repayments, a long-term mortgage or better mortgage rates, an advisor can help you find it.
Pro: Mortgage Advisors Can Help You Manage Fees
There are a lot of fees involved in getting a mortgage. You might assume that fees begin and end when you put your capital down, but that’s not the case. There are a whole host of fees that you’ll need to pay during the application process including application fees, origination fees, and more.
If you go with a mortgage advisor or mortgage broker, they may be able to help you out with these fees. In some cases, they can even waive the fees, cutting down the amount that you’ll need to pay during the initial application by quite some margin.
Pro: Expert Mortgage Advice
The mortgage industry changes constantly. If you previously got a mortgage a few decades ago, you might be surprised at the changes that have been made to the industry and its regulations.
If you’re a first-time buyer, then you’re unlikely to be au fait with the huge array of knowledge required when looking through different mortgage offers. One of the key duties of a mortgage advisor or a mortgage broker is to stay up to date with the legislation and regulations of the industry. This means that when you use one, you’ll be getting expert mortgage advice that can make the process a lot less confusing.
Con: Are They Independent?
A mortgage advisor’s independence is one of the key facts that you need to take into account when you’re looking at using a mortgage advisor. There are three main kinds of mortgage advisor/broker:
- Whole of Market Mortgage Broker
A tied broker is, as the name suggests, tied to a particular company. This means that they will only be able to offer you advice referring to mortgages with that specific company. They are usually paid with commission on the mortgage.
A multi-tied advisor has access to a range of mortgage brokers and can offer you a mortgage deal from any of these companies. They may also be paid with commission.
A whole of market mortgage broker can offer you a mortgage deal from any company. They will often require a fee upfront but will not be biased towards any one company.
If you want to ensure that you are getting the best deal, ask your advisor how many companies they work for. They are legally obligated to tell you thanks to stringent regulations. If you’re interested in the greatest range of choices, seek an independent broker.
Con: You May Not Get the Best Deal
While some mortgage lenders offer their best rates to brokers, this is not always the case. Sometimes, mortgage lenders will offer buyers the same rates that you will get through a mortgage advisor. Before you pull the trigger on a mortgage, shop around.
Ask the lender what their rates would be if you came to them directly, rather than going through a broker. If it would be the same, go to the lender directly, instead of going through a mortgage broker or advisor and save yourself some cash.
Con: Estimates May Not Be Set in Stone
If a mortgage advisor or mortgage broker offers you a “good faith estimate,” don’t assume that this is set in stone. Be cautious when looking at these estimates. They are the broker’s best guess, but that doesn’t mean that it will turn out this way.
Con: Finding a Mortgage Broker Can Be Difficult
There aren’t very many mortgage brokers in the United States. The industry was hit hard by the financial crisis of 2007-2008, which decimated the industry. Even now, finding a broker in your area can be difficult.
If there aren’t very many in your area, this can add extra stress to the process of getting a mortgage.
Con: Closing the Deal Can Take Longer
Closing the deal with a mortgage broker can take longer. They will need to send your mortgage application to the lender’s underwriter for processing. If you are dealing with the lender directly, you can cut out the middleman, which can be quicker.
Should You Use a Mortgage Advisor?
Now that you’ve read our list of pros and cons of using a mortgage advisor, what’s our verdict? Should you use a mortgage advisor?
It will depend upon your unique circumstances. If you are a first-time buyer saving money to put towards your mortgage, an advisor can cut through red tape and take the complexity out of buying a home. If you are more seasoned, you may be best shopping with lenders directly.
Whatever you decide to do, shop around! The mortgage market can be tricky to navigate, but we’re here to help give you tips. We recommend taking a look at our list of mortgage tools that can give you a helping hand!