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. 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 lower the purchase price.
- 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 it is becoming a distant memory. You can’t afford it.
The wrong process could cost you.
The wrong process could cause you to 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 insist on using the named solicitor who’s not on the panel. In that case, the lender will instruct their solicitor to represent their interest, but you will bear the cost for their panel solicitor in addition to your own solicitors’ fee.
Avoid the pitfalls and unnecessary costs.
When looking for a new home, speak to a Connect Mortgages First-Time Buyer Specialist. Our mortgage advisers are skilled at identifying potential issues early in the process. They understand how a lender’s surveyor may value your chosen property, helping you stay prepared.
Our experts will guide you to avoid unnecessary costs and keep your purchase on track. With our support, you can confidently move forward and secure your dream home. Choose Connect Mortgages as your trusted mortgage specialist.
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When Should I Speak to a Mortgage Adviser? | Talk to Connect
