When Do You Engage with a Mortgage Adviser
Buyers should be aware of potential pitfalls before offering their dream home, mainly if they are first-time buyers. One of the biggest mistakes a home buyer can make is jumping headfirst into purchasing their dream home without first doing due diligence. While getting caught up in the excitement of buying your place is understandable, some potential pitfalls should be considered before signing on the dotted line. 
For starters, it’s essential to research the neighbourhood and local housing market. Are prices rising or falling? How long have homes been on the market? What amenities are nearby? Answering these questions can help you decide whether your dream home is worth investing in.
There are other things first-time home buyers should be aware of before making an offer on their dream home. When do you engage with a mortgage adviser, here is a typical scenario.
You’ve seen the ‘one’, and no other property compares but now what?
The asking price for the property is higher than you had hoped, but you can stretch to that price if you use more of your savings, but should you? The estate agent says the vendor won’t settle for anything under the asking price of £230,000. However, you are not confident that the property is worth that value, as it needs some work.
Before making an offer on any property, the best action is to speak to a first-time buyer mortgage adviser. They’ll research the property’s type, age, construction, and likely valuation from a lender’s perspective. Sometimes, this can be wildly different from the estate agent and vendor’s estimate. Remember, no fee is due to our first-time buyer specialist at this early stage in your journey.
If you don’t, this could happen.
“When do you engage with a mortgage adviser.”
- The estate agent and vendor have accepted your final offer of £230,000. You then decide to contact a broker and ask them to apply for the mortgage funds on your behalf.
- Your application has been submitted. You’ve paid the broker’s application fee and the lender’s valuation fee. What could go wrong?
- The lender down-values the property by £25,000. However, you can cover the shortfall if you borrow from your parents and use the money you set aside for new furniture and decor.
- You try to negotiate with the vendor to get the purchase price down.
- You ask the first-time buyer specialist if they can try a different lender. You understand that this may mean paying more fees.
- You’re left feeling anxious as your dream home looks like becoming a distant memory. You can’t afford it.
The wrong process could cost you.
The wrong process could cost you should send shivers down your spine, which inadvertently answers the question, when do you engage with a mortgage adviser? First-time buyers often need to know the processes associated with obtaining a mortgage. For example, a buyer may deduce that there is a need for a legal representative, but do they know the conveyancing process and the need for solicitors to be on the panel of their selected lender? Lenders only accept some solicitors, especially if the said solicitors are sole practitioners. Therefore, it could cost you more if the chosen solicitor is not on the lender’s panel.
Suppose you, however, insist on using the named solicitor that’s not on the panel. In that case, the lender will instruct their solicitor to represent their interest, but you will bare the cost for their panel solicitor in addition to your own solicitors’ fee.
Avoid the pitfall and unnecessary costs
When do you engage with a mortgage adviser, speak to a Connect Mortgages first-time Buyer Specialist when looking for a new home. Connect mortgage advisers are adept at spotting potential pitfalls ahead of time. As a result, they will learn how the lender’s surveyor will likely value the property. Forearmed is forewarned!
They will be able to keep you on track to avoid unnecessary costs and will help you buy you’re your dream home. Avoid these pitfalls by using us as your mortgage specialist.
