Buying a house is a big deal! And purchasing your first home is a monumental milestone. One of the most complicated parts of the home-buying journey is navigating the mortgage process. While it might seem logical to approach a bank directly for a mortgage, there is a compelling case for enlisting the services of a mortgage broker to do this on your behalf.
In this article, we’ll explore why home buyers in Ireland should opt for a mortgage broker and the benefits they can provide for you – the client.
What is a Mortgage Broker?
A mortgage broker is a licensed professional who acts as an intermediary between the home buyer and the lender. Mortgage brokers work on behalf of and assist their clients in securing mortgage loans by assessing their financial situation, providing guidance on available mortgage products, and facilitating the loan application process.
On review of your (the client’s) finances, a mortgage broker evaluates whether you are in a favourable position to apply for a mortgage. In cases where financial circumstances may not support a successful application, your broker can offer recommendations and assistance to help you become mortgage-ready.
A good mortgage broker will tailor their advice and recommendations depending on their clients’ future financial goals and aspirations.
Benefits of Working with a Mortgage Broker
Zero to Minimal cost: You might be surprised to discover that, in most cases, the services of a broker come at zero cost to the client. Mortgage brokers, like EDUC Mortgages, are compensated by the lenders themselves. When we successfully secure a mortgage on your behalf, we receive a fee from the lender upon the mortgage’s completion. This means that from the client’s perspective, there’s no financial burden associated with engaging a broker.
Ask about any fees associated with your mortgage broker’s service. A good broker will explain their fee and commission structure up front.
Access to a range of lenders: One of the main benefits of working with a broker is the access they have to a network of lenders. Whereas a bank can only offer the mortgage products contained within their own portfolio, a broker has relationships with and knowledge of multiple lenders and the mortgage products they provide.
This network allows brokers to shop around on behalf of their clients, comparing rates, terms, and conditions to find the best possible deal tailored to individual needs and financial circumstances.
When looking for a broker work with, ask about the lenders they are affiliated with.
Knowledge, Expertise and Relationships: Navigating the mortgage process can be complex especially for first-time buyers. Employing the services of a seasoned professional with in-depth knowledge of the industry, market trends, lending criteria, government schemes, and regulatory requirements can remove a lot of the pressure that first-time buyers feel to make the right decisions.
On assessment of your finances and personal circumstances, your broker will determine your mortgage readiness, your affordability and your borrowing capacity i.e. how much a lender is likely to give you. They will then guide you through the process helping to present your application in the best possible light to guarantee mortgage approval success.
Should any queries arise during the application process, your broker will serve as the intermediary between you and the lender. Leveraging their established relationships with lending institutions, they can effectively advocate on your behalf—a task that might prove challenging for an individual navigating the process alone.
Tailored Advice to Your Personal Circumstances: Your mortgage broker will take the time to get to know your circumstances, your goals, and your aspirations. They will tailor their advice and recommendations depending on the future you are hoping to create. Whether you are a first-time buyer, self-employed, or you are seeking to switch your existing mortgage, your broker can offer customized advice and support to help you.
Saves You Time and Effort: Enlisting the services of a mortgage broker can save you time and streamline the process significantly. Multiple visits to explore the mortgage products from various lenders can be reduced to one discussion with your broker who can cross compare all of the products on the market.
Once you have provided the documentation requested (bank statements, employment cert, proof of address, ID etc), your mortgage broker will manage your application process from start to finish. This gives you more time to focus on the best part of the journey – finding the right property, while enjoying peace of mind knowing that your mortgage is in expert hands.
Protection and Insurance: Your broker will be able to advise you and set up a mortgage protection policy – an essential requirement before a mortgage can be drawn down. They are often able to access discounted rates with insurers in relation to life and protection policies.
Choosing a mortgage broker over a direct lender offers a multitude of benefits that cannot be overstated. From access to a wide range of lenders and expert guidance to a personalised and time-saving service, brokers offer invaluable support throughout the home buying process. Whether you’re a first-time buyer or a seasoned investor, working with a reputable mortgage broker can make all the difference in achieving your homeownership goals.
Choose EDUC Mortgages as your Mortgage Broker
At EDUC Mortgages, we provide expert and tailored support to help you navigate the complexities of the mortgage process. Our team has been helping Ireland’s teachers and public sector workers achieve their dreams around homeownership for the past 20 years.
Contact us today for a free consultation and let us support you on your mortgage journey.