The Importance of Using a Mortgage Broker: Avoid Inaccuracies in Media Reports
The media often reports on cases where individuals have been declined for a mortgage, highlighting inaccuracies and potential biases in the lending process. However, these reports often lack key information, and it’s important to understand the full picture before drawing conclusions. In many cases, these issues could have been avoided if the clients had worked with a mortgage broker. Nonetheless, they paint a harrowing picture of the current mortgage marketplace, potentially putting off would be buyers and contributing to a larger economic issue.
In this article, we’ll highlight a few examples of inaccurate media reports and explain how working with a mortgage broker could have prevented these issues.
Example 1: The Guardian Article
In a recent Guardian article, several individuals were highlighted as being declined for mortgages despite having good credit scores and stable incomes. However, the article failed to mention several key factors that may have contributed to the declines, such as high levels of debt or insufficient proof of income. Additionally, the article did not explore the possibility that these individuals may not have been a good fit for the lenders they applied to.
We view this article as potentially damaging, and recommend that everybody speak to a mortgage specialist about their own mortgage needs. It’s easy to be put off when reading an article like this, which is why we wanted to highlight it to you today.
Working with a mortgage broker could have helped these individuals understand the lending criteria of different lenders and find one that is a good fit for their financial situation. Brokers can also help clients prepare their application materials and provide guidance on how to improve their chances of approval. Unfortunately, many individuals only speak to their bank, which leaves many with the belief that they are unable to obtain a mortgage loan.
Example 2: The Importance of a Good Credit Score
Another common issue that is often misrepresented in the media is the importance of a good credit score. While having a good credit score is certainly important for getting approved for a mortgage, it’s not the only factor that lenders consider. Lenders also look at a borrower’s debt-to-income ratio, employment history, and other factors.
A mortgage broker can help clients understand the importance of a good credit score and provide guidance on how to improve their score. However, brokers can also help clients understand how other factors, such as their debt-to-income ratio, employment history, and savings, can impact their chances of getting approved for a mortgage.
It certainly seems from this article that this additional advice was not forthcoming when these clients requested it directly from their lenders.
Example 3: The Importance of Documentation
Another issue that is often misrepresented in the media is the importance of providing accurate and complete documentation. Many borrowers assume that their good credit score and stable income are enough to get approved for a mortgage, but lenders need to see documentation to verify this information.
Working with a mortgage broker can help clients understand what documentation they need to provide and ensure that it is accurate and complete. Brokers can also help clients understand how to present this information in a way that is most likely to be approved by lenders.
In conclusion, it’s important to work with a mortgage broker to avoid inaccuracies in media reports and ensure that clients are fully informed about the lending process. Brokers can help clients understand the lending criteria of different lenders, provide guidance on how to improve their credit score and financial situation, and help clients prepare their application materials. By working with a mortgage broker, clients can improve their chances of getting approved for a mortgage and avoid the frustrations of inaccurate media reports.
Talk to the experts
If you believe you’ve received bad advice, or simply were told you couldn’t borrow the amount of mortgage you needed to purchase your dream home, then this message is for you! Don’t give up – get in touch with an expert. You can start online by completing the form below.