6 Reasons For Using A Mortgage Advisor For Your First Home
How A Mortgage Advisor Can Make The Difference Between a ‘Yes’ or a ‘No’
As a first home buyer you’re no doubt looking for every bit of help when it comes to getting into your first home. That’s where a mortgage advisor can come in handy.
Here we provide 6 reasons for using an advisor to help you with the key area of getting your pre-approval sorted.
1. Advisors Can Present Your Application In The Best Light
The Banks are becoming increasingly picky about the loans they choose to approve, particularly with recent Loan-To-Value restrictions being extended.
The difference between getting a ‘Yes’ or a ‘No’ from the Bank can be as simple as getting assistance from an advisor about how to best present your loan application. A registered mortgage advisor is knowledgable in the processes and requirements that a Bank goes through to evaluate an application. Knowing this makes it simple for them to assess your situation and tailor the way your application is presented for the best impression.
2. Up To Date Industry Knowledge
From the latest KiwiSaver HomeStart criteria to increased Loan-To-Value restrictions, it is an advisors job to keep up to date with the changes to the banking industry as they occur.
Advisers will have up to date product knowledge across multiple Lenders and will be able to advise you about whether or not you should be fixing or floating. As there are so many different options available, a mortgage adviser’s role is to find you the most appropriate mortgage available in the market place and to ensure that the loan structure is the right fit. Repayment options will be fully explained and tailored to your needs.
3. They Shop Around The Banks On Your Behalf
A mortgage advisor works for you to get the most appropriate deal to suit your situation. Working on your behalf, they can deal with multiple banks and lenders, saving you time. They are skilled at negotiating rates and getting the terms that work for you.
4. They Are Qualified And Registered
An advisor is required by law to be registered as a financial services provider. You can check whether they are registered via the Financial Services Providers Register.
An advisor is required to provide you with a disclosure statement covering the following:
- Type of Advisor they are (Authorised or Registered)
- Where to go if something goes wrong.
- How they are regulated
An Advisor should also disclose, how they get paid, and that they are governed by the Privacy Act which means that your personal information will only be disclosed to relevant parties as part of the application process (ie Banks/lenders/Credit Agencies)
5. They Are On Your Side
An advisor works for you not the Banks. That means they act on your behalf for the best outcome for your needs.
A mortgage adviser specialises in sourcing finance across a range of lenders. Whether you are a first home buyer, seasoned property investor, business owner or just looking to refinance or buy another property, a mortgage adviser will source the lender that best suits your individual needs.
A mortgage adviser will assess your needs, do the “running around” for you; obtain pre-approval and see the process through to the end.
A mortgage adviser provides you with choices! Lender terms can differ significantly. Finding you the most appropriate lender for you is what they do best!
6. Their Services Are Generally Free
A mortgage advisor gets paid by the Bank upon completion of a transaction and drawdown of your home loan. In most cases this means their services are free so take advantage of their experience to help you through the daunting process of buying your first home.
In some cases an adviser may charge a fee for their service which will be disclosed to you upfront and only applicable if agreed upon by you. This generally occurs with Non-Bank or 2nd tier lenders who do not pay commission to advisers.
The First Home Buyer’s Club works with some excellent advisors from Mortgage Link, Squirrel and The Mortgage Lab to provide specialist advice to first time buyers.
To get in touch with an advisor to get planning for your first home, complete the below form: