Clear Communication is Vital When Arranging a Mortgage
Though it needn’t be as confusing as many assume it to be, the process of getting a mortgage can, quite often, be less than straightforward.
This would seem, to an extent, unavoidable. After all, a there’s a large amount of searching, decision making, paperwork and administration involved in the early stages of getting a mortgage.
However, whilst the amount of organization involved means that it is unlikely things will run 100% smoothly, you can avoid any unnecessary hold ups by making sure that all the parties involved in getting your mortgage arranged are communicating effectively.
Just take a second to think of all the different organizations that are going to be involved along the way. You have the realtor, the mortgage lender, you may also have a mortgage broker or mortgage agent helping you deal with them, and on top of this you will have your lawyer involved, as well as the sellers lawyer.
All of this before you factor in surveyors and other groups you yourself may have to contact regarding your mortgage, such as you bank or employer (to obtain written proof of earnings and other documents…)
With all this information passing between all these parties it is no wonder that wires can become crossed, slowing everything down. However, if you are aware of potential problems before hand, there are things you can do to avoid trouble.
The most important party as far as communications are concerned is the realtor, or estate agent. They are the real crux of the operation, as they will talk to almost everyone at some stage. Therefore, as they have to go between so many different people already, it is wise to try and avoid having messages go through them if it isn’t necessary.
For example, if your lawyers aren’t hearing back from their lawyers on any issue, or vice versa, they are likely to start using the realtor or estate agent as a go between. There’s no need for this. Do what you can to get both sets of lawyers dealing with each other directly.
Many people, especially first time buyers, don’t have a lawyer when they take out a mortgage, and have to hire one for the purpose. It is tempting to go for the cheapest you can find, especially as it can sometimes seem as if they are an unnecessary expense.
Beware doing this, as skimping on your lawyer can slow everything down by placing a weak link in the chain of communication. You should also check with how much work they already have before hiring them. If they are overloaded it could cause problems.
When you’re looking for a mortgage you will have to decide if you want to deal with mortgage lenders yourself, or hire a broker to that for you. Whilst brokers can really take a huge load of your shoulders, they can also add another link to the chain of communication with your lender.
Lenders can, naturally require a lot of information from you, especially if you are self employed, in order to prove the state of your finances. This can be hassle enough in of itself, if each request first has to go to the broker, then to you and back via the same route, it can lead to a lot hanging around.
When hiring a broker examine very closely how quick they are at responding to communications from you and how well organized their systems for correspondence seem to be. Whatever else they can offer you, don’t forget that they are supposed to be making dealing with a lender easier, not providing an obstacle. If they are slow at sending messages back and forth, they will become just that.