Who is a mortgage advisor?
A mortgage advisor is also known as an independent mortgage broker. Mortgage advisors are experts in that field with deep knowledge and vast experience in the relevant field. A mortgage advisor is there to help the borrower in purchasing the mortgage. Advisors are one of the most important personals in a mortgage process.
Types of mortgage advisors
There are three main types of mortgage advisors.
1. Unique to a certain lender
Those mortgage advisors are similar to loan officers. They work for only a single lender. Every client (borrower) they meet will be sent to the same lender.
2. Limited to certain limited lenders
Those advisors are a little bit various from the first type. These are having variable lender choices for their borrower clients. But it's also limited to a certain extent
3. Wide ranged
Those advisors are highly variated. They are not bound by a limit. Borrower clients can choose a lender from a huge variable selection.
As the mortgage industry and market had extended in the present day, the importance of a mortgage advisor is high. Out of the above three categories, even the third type of advisors also can't cover the whole mortgage market.
Importance of acquiring a mortgage advice
Simply, not taking advice will end up ruining the borrower. It will either,
• Make some heavy financial damages by taking faulty decisions, or
• Make the mortgage request a useless one by making it to be rejected
Why a borrower should need mortgage advice?
Mortgage advisors will direct the borrower towards the correct path. They will consider all the income and financial status of the borrower and assume the correct and matching mortgage plans for their client. So, without a mortgage advisor, if the borrower has no idea or knowledge of the mortgage industry, he would be in trouble, not in the coming recent future but the long future. Moreover, it will cause the mortgage request to be rejected by the lender. But the borrower has the right and power to accept and reject the advice given by an advisor. A mortgage plan without an advisor is called an "execution-only" plan.
Advantages of an Advisor
• Mortgage advisors concern about the financial status of the borrower. So, they will check whether the borrower can afford the mortgage plan asking for.
• Mortgage advisors may have close relationships with many lenders. So, it will help the clients to have certain reliefs such as discounts.
• Paper works will be handled and done by the mortgage advisors
All the documents (legal and financial) are handled and hand over to the lender is done by the mortgage advisor
• Mortgage advisors help in establishing a protected and perfect mortgage
Disadvantages of a Mortgage Advisor
• The main disadvantage is revealing and exposing of private and confidential information of the borrower. Such as income records, credit card numbers, bank details may be exposed to the mortgage advisor.
• The borrower has to pay for the mortgage advisor
• The borrower may be unhappy and disappointed about the mortgage advice and advisor.