When looking for a mortgage, every bank is likely to tell you that theirs is the best fit for you. However, it is clearly impossible for every bank to have the best mortgage. As is logical, each bank mostly tries to promote the strong points of its product to potential customers. The key to finding the loan that best suits your needs, and best fits with your personal and financial situation, lies in the figure of the mortgage broker, a professional who knows the market and helps the consumer to navigate it and find the right mortgage for them.
Here we review the key factors in getting the best mortgage, what exactly is a mortgage broker, and what are the advantages and disadvantages of contracting their services.
How to get the best mortgage
When it comes to getting the best mortgage it is important to start from the premise that there is no such thing as the perfect mortgage; the choice will depend on your personal and financial circumstances. In other words, what may be the best mortgage for one person may not be for another. The key factor in this choice are the applicant's economic and employment situation, family burdens, and previous savings. Moreover, the fact that a bank grants a mortgage to one person does not mean that it will grant it to everyone who applies for it, nor does it mean that it will apply the same conditions. Everything depends on the personal characteristics of each applicant.
Because of this, it is necessary to compare mortgages on a personalised basis to really know what houses you can afford and which mortgage product best fits your individual profile. This can be quite a laborious (and even tedious) task, and without the necessary knowledge you may also find that a clear option that allows you to have a complete overview of the conditions eludes you. It is at this point that many consumers decide to trust a mortgage broker and engage their services.
What is a mortgage broker?
A mortgage broker is a professional who knows the mortgage sector because they study it, compare it and keep themselves continuously updated on its state. It is, therefore, a person who is able to find the mortgage that best suits the profile of each applicant, choosing the option that offers the most advantages in terms of both conditions and price.
Advantages of hiring a mortgage broker
Some of the main advantages of contracting a mortgage broker are:
- Individual and personalised study of the applicant. This study allows them to get to know the applicant and their specific circumstances before beginning the process, to figure out which types of mortgage may be of most interest to them.
- They offer mortgage information that is easy to understand. Another of the services provided by the mortgage broker is that they "translate" the information offered by the banks into a clear language that is easy for anyone to understand.
- They search for different mortgages that fit the applicant's profile. One of the most important services offered by this professional in the mortgage market is that they take care of finding the mortgage (or mortgages) that best fit the applicant's profile, so the applicant doesn't have to.
- Organisation of the signing of deeds. Another of the advantages is that they take care of the formalities related to the signing of the deeds and the paperwork in general related to the management of the mortgage, no easy task if you are not familiar with this area.
Disadvantages of a mortgage broker
Although using a mortgage broker is a good way to find the most suitable loan for each person, they are not a perfect solution, and obviously have some disadvantages that are worth knowing about:
- Their service is not always free. It is essential to know whether the mortgage broker offers a free or paid service to avoid unpleasant surprises. Many professionals charge fees and, although they can vary greatly from one to another, the average fee can be as much as 3,000 euros. But there are also brokers that do not charge the client anything, as is the case with idealista/hipotecas. These brokers charge the banks with which they close the financing operations instead of the applicant.
- Some mortgage brokers do not work with certain banks. Another problem that can arise when using the services of a mortgage broker is that they do not work with a specific bank or group of banks. If this is the case, the mortgage offer to which you will have access will necessarily be more limited.
- Different quality of service. As in other sectors, the way each professional works varies from one broker to another. Therefore, it may be the case that we find one that works very well and meets our expectations, or you might find one who does not.
Online mortgage comparator and free service at idealista
The figure of the mortgage broker is very useful when you are looking for a mortgage and you do not know the sector well. However, you should be aware that in many cases the professional charges for their services, which will mean an extra cost that you will have to pay in addition to the mortgage itself. Thus, it is advisable to know beforehand whether or not they provide free services.
But if you are looking for a loan to buy a home and do not want to spend more money, we recommend you use the idealista mortgage comparator. With this tool you can compare many alternatives quickly and easily. All you have to do is enter the data requested to find out your profile as an applicant and in just a few seconds you will have access to the mortgage products that best suit your characteristics.
In addition, idealista/hipotecas presents the documentation to the banks on behalf of the client and negotiates with them to obtain the best possible conditions, accompanying you throughout the process of selecting and granting the loan. And it is a completely free service for the consumer.