Is it worth using a mortgage advisor?

Is it worth using a mortgage advisor?

Mortgage advisers are professionals with extensive knowledge of the financial, mortgage and real estate markets. Trained in fields such as economics and law, they can advise us on the banking products that best suit our needs, including mortgages.

Why hire a mortgage advisor? 

One of the main reasons why an individual hires a mortgage advisor is a lack of time. Think that asking for a mortgage is a very important step because it is something that will condition your life and that of your family in the coming years and that before applying for one you must:

  • Know if you meet the requirements to request it or not.
  • Be clear about the steps to follow.
  • Prepare all the necessary documentation for the bank, the Land Registry, etc.
  • Calculate the amount of money you need, something that will undoubtedly condition the conditions of your mortgage.
  • Compare between the wide offer on the market and choose the entity and the mortgage that best suits your situation.

Another reason for hiring a mortgage advisor is their negotiating skills. And, although the bank decides the conditions of the loan, you can always try to improve those terms of the mortgage that do not seem appropriate. To carry out a successful mortgage negotiation it is important to be very clear about how the mortgage market works. If not, hiring the services of a mortgage advisor is the best option.

Lastly, a mortgage advisor doesn’t just have a better understanding of the mortgage market. As a general rule, these professionals have collaboration agreements with private banking or financial entities. In this way, they can get better conditions for your mortgage and, above all, process your application in several banks at the same time so that you have real data to assess your possibilities before making a decision.

5 advantages of hiring a mortgage advisor 

It offers you all the information  

Your mortgage advisor will inform you at all times of basic and complex issues that concern your mortgage, including terminology, clauses, conditions, commissions, etc. In other words, with the services of a mortgage advisor, you will know at all times what are the conditions that the bank is offering you and what you are committing to. Both aspects are essential to avoid surprises in the future.

He is an independent professional  

Mortgage counselors work for you, not for the bank. This does not exclude that they may have agreements with entities to offer you better conditions, but they are not committed to them. In fact, your mortgage advisor will not pressure you to contract a product, since part of his work is based on impartiality before the entities with which he works: he will study your situation, he will explain the pros and cons of each mortgage, and you will advise based on them.

Know your financial situation 

Your relationship with your mortgage advisor should be based, in part, on trust. That is why you should be up to date with your financial situation so as not to assess those options that are not really interesting for you and focus on mortgages adapted to your situation: it is not the same to be self-employed, as an employee, civil servant or employer.

It can get conditions that you will not have access to 

Mortgage advisors have contacts and experience in their sector and, thanks to their knowledge and the volume of operations they carry out, they can approve operations that an individual, alone, would never achieve. In addition, mortgage advisers work with professional appraisers and architects, which can also be interesting when valuing the property you are going to acquire.

Advises you throughout the process

And this also includes the signing of the mortgage. In the previous period and in the negotiation with the bank, the mortgage advisor acts as a representative. But at the time of signing, one of the most complex, being accompanied by an expert who explains, helps you, and defends your interests is a guarantee.

How else can a mortgage advisor help me?

As the name suggests, a mortgage advisor is a professional who offers us advice when requesting a mortgage. But this is not its only function. Thanks to his experience in procedures and procedures, his knowledge of the financial sector, and his transparency and independence, this professional can help us with our investments, the contracting of insurance, pension plans, or savings plans, the management of the personal economy, etc.

It is true that many times the contracting of a mortgage is linked to the acquisition of different bank products such as life and home insurance. However, it is also true that these services can be contracted individually and independently of the mortgage. In this sense, the mortgage advisor offers us advice on whether or not to link life insurance to our mortgage and, in turn, alerts us about the contracting of products that are unnecessary.

Mortgage advisors, as experts in the sector, can also give us guidelines on which lines of investment interest us the most according to our wealth and income, as well as the best savings options.

In all cases, the mortgage advisor has the experience to know what suits us and to expose us to those issues that we, generally due to ignorance, did not take into account.

Professional profile of the mortgage advisor

Mortgage advisors have a professional profile that combines knowledge of economics and law. Normally they are lawyers or economists who are experts in mortgages because they know perfectly the legal, economic and practical nature of the mortgage loan, as well as the mortgage as a real guarantee, the financial characteristics of each bank and the current legislation on this type of services.

Some of these advisers work independently and others do so as specialists in management, processing and tax advice companies. In all cases, the work of the mortgage advisor is regulated to guarantee its transparency. Professionals must register as such with the National Consumption Directorate (AECOSAN) informing them about their services and fees as financial intermediaries.

What to know before hiring a mortgage advisor  

Our first advice before choosing a mortgage advisor is that you hire their services from the beginning and in parallel with your mortgage search. It is also important that you compare their fees so that you do not pay more than the savings you will get with the mortgage.

Regarding these fees, some have a fee per consultation, although it is increasingly common for them to take a percentage of money depending on the amount of the loan (3-4%). If so, if our advisor offers us information on several mortgages but none of them meets our needs, he should not charge us anything, something that also guarantees that he will look for the offers that best suit us.

In any case, the mortgage advisor must tell us his budget before signing the mortgage so that we know perfectly what the expenses associated with it are.
Knowing the advantages and disadvantages of taking out a mortgage with a mortgage advisor is key to avoiding surprises. From the capital smart city we advise you to always trust real estate and financial professionals like us. Therefore, if you have any questions, do not hesitate to contact us.

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