Can you be sure your mortgage application will be successful? There is the risk that you will end up losing money by paying for wasted valuations, if your lender then declines your application.
“As a potential purchaser, you could be paying for services that have no value if your mortgage application is ultimately rejected,” cautions Grahame R Harwood. “Worse still, this may happen several times, with successive properties.”
There is then a further risk that such declined applications find their way onto your credit record, exacerbating the problem for the future.
“Rejected mortgage applications could result in you being locked out of the process altogether”
“You need to look at how you can improve your chances of having your application approved much earlier in the process,”warns Grahame.
Something for Nothing
“Detailed mortgage research and discussions with mortgage underwriters should take place before submitting a mortgage application,’ Grahame suggests.
“This involves your mortgage broker carrying out a good amount of detailed work free of charge,” say Grahame, “but not all will do this.”
“It sounds like the mortgage broker is doing something for nothing, but in fact it makes very sound business sense,” says Grahame. “Just as any successful business needs to do its market research, so the same applies when brokering a mortgage.”
Good Customer Service
Essentially this is taking a customer-focused approach: researching the market and the area and the property involved at no extra cost, and with no obligation on the part of the client.
“Preparation is key. Any client wishing to obtain a mortgage must have all the necessary detail to hand,” advises Grahame, “and good professional mortgage advice should furnish them with this.”
All mortgage applicants must carry out detailed due diligence, whether they are prospective home owners or buy-to-let property investors. For example, would-be landlords must understand their target tenant, and how they fit in with the desired property and its location.
“It’s about the bigger picture. A successful mortgage application comes from putting all the parts together, including the financial details, costs and, if it’s a buy-to-let, projected rental yield”
It is possible to transform a no into a yes on the part of lenders, providing there is the right degree of research, and firm liaison with the different parties involved.
“A good quality mortgage broker offers clients something for nothing, essentially, by providing the kind of necessary detailed research that will get them the result they require. That’s just good customer service.”
As a financial educator and enabler, Grahame R Harwood has an extensive network of quality mortgage broker connections. If you, or any of your connections, have any mortgage-related challenges, please contact him:
For an additional read, please visit Investors: Why is Buy To Let Not Dead, But Different?