Above: Our full interview with Navigate Mortgage’s Paul Shannon.

Recent months have thrown workers and businesses into a period of uncertainty, with firms around Europe at a standstill due to the ongoing Covid-19 pandemic. However, the virus has driven a new trend that is sure to gather momentum in the future: consumers are now more conscious over their health and financial status than ever. With this in mind, we sat down to talk with Navigate Mortgages’ Paul Shannon to talk about life, business and protecting your health & wealth. Check it out!

As an independent mortgage salesman, young entrepreneur Paul Shannon certainly leads a busy life. Recently married and moved into his first property, he has spent much of the past few years building experience in mortgage sales, jetting around the world on well-earned holidays with his wife. For Paul, moving into independent mortgage sales was a natural step after working his way through Halifax over a seven-year period. After building up his confidence, he moved to an independent financial practice called Navigate IFA. “I’ve never looked back,” he admits.

Protecting home & health with paul shannon

From First Home to Retirement Home 

What services do Navigate IFA provide? According to Paul, the firm was originally formed to specialise in family planning, stock & shares and financial advice. When he joined the firm, it expanded to include Navigate Mortgages, with his knowledge and expertise forming the foundation of the new business. At present, Navigate Mortgages offer advice around property & mortgages as well as life insurance, critical illness cover, income protection, contents insurance, will-writing services and more.

“Everybody needs a will, but nobody has one. So, we started doing that,” he laughs. “We take our customers from their first house to their last house, including retirement homes, pensions and everything in between.”

Paul highlights that the strength behind Navigate IFA is that it offers a one-stop shop for financial services, meaning that customers are not faced with the challenge of finding multiple providers for various services. “They can get everything in house in a small, independent and local practice,” he explains.

paul shannon navigate mortgages

But what is Paul’s specific role within Navigate IFA? As he explains: “I take the hassle out of financial services. I go out into the marketplace and recommend better deals. We sit down to talk about home and life insurances and protecting your income.”

Touching base with clients on an annual basis forms a critical element of Navigate’s business. “We revisit clients to discuss their mortgage and their insurance, offering new deals that may be a significant improvement on what they’re currently paying,” Paul explains. According to the mortgage expert, many consumers aren’t aware of the various options out there.

“There’s a misunderstanding amongst consumers that they have to stick with their bank, which really limits them,” he adds. “We have access to every mortgage lender on the market. So, we shop around and help them switch lenders”. He highlights his own example of moving between Halifax and Bank of Ireland, earning himself £500 cash back and taking a couple of years off the end of his mortgage. 

Offering a Digital Service

Swapping mortgage is a highly complex process – however, this is made simple for the customer thanks to Navigate Mortgages. “We want our clients to go from application to mortgage offer in around two weeks,” Paul explains. “We want the process to be as slick as possible. The biggest thing here is communication – if anyone is chasing us, it means something isn’t being done right. We use WhatsApp here, meaning our clients are always in contact with us.”

According to Paul, Navigate are in the midst of taking their next steps towards offering more digital elements to their services. This has already been helped massively with the likes of Zoom and Skype, helping Paul and his colleagues to connect and communicate with clients. “We do a lot of appointments during people’s lunch breaks – we make it work for them. This also helps us with our work in Scotland and England,” he adds. 

The mortgage expert explains that in many cases, his job involves educating clients around the processes and various intricacies behind mortgage and insurance sales. This lack of knowledge is often the biggest obstacle faced by first-time buyers. “As an independent broker, I have the knowledge. We take that knowledge and send it back to the client”.

Mortgages Aren’t Everything

Whilst getting a mortgage is extremely important, Paul highlights that it isn’t everything. Indeed, he suggests that a mortgage is largely pointless without insurance to support it. “Getting a house is great, but it will lead to debt that doesn’t disappear quickly. It’s also important to remember that things happen to our health all the time. Our biggest asset is our ability to earn an income. We build bespoke insurance packages and tailor it to each and every one of our clients” he explains.

“Some people think they are invincible and think they won’t get sick. You never know when illness, injury or accident will happen. We take care of those financial worries so that you can focus all of your efforts on getting better. A lot of companies don’t offer any sick pay at all. For cases like this, Navigate is here to help.”

*Paul Shannon can be found on LinkedIn, and can also be contacted via Navigate Mortgage’s official website*

Paul Shannon’s contribution joins a number of industry-leading insights as part of ProfileTree’s award-winning Business Leader series. To take part in the series or to discover how content marketing can transform your business, get in touch with our expert team today. 

Demystifying Mortgages: Your Guide to Understanding the Basics

Buying a home is an exciting milestone, but the world of mortgages can feel overwhelming. Fear not, intrepid homebuyer! This guide will unpack essential mortgage basics, equipping you with the knowledge to navigate this crucial step with confidence.

1. Navigating the Maze of Mortgages:

Different types of mortgages cater to diverse needs. Understanding these options is key to finding the perfect fit for your situation:

  • Fixed-Rate Mortgage: The interest rate remains constant throughout the loan term, providing predictable monthly payments and stability. Ideal for those seeking certainty and budget predictability.
  • Adjustable-Rate Mortgage (ARM): The interest rate fluctuates periodically based on an index, potentially offering lower initial rates but introducing uncertainty for future payments. Suitable for those comfortable with potential rate changes and who plan to sell or refinance before the adjustment period ends.
  • Jumbo Mortgage: Borrowers exceeding specific loan limits for their area require a jumbo mortgage. These often have stricter qualification requirements and may incur higher interest rates.

2. Decoding Mortgage Terms and Rates:

Before signing on the dotted line, familiarizing yourself with key terms is crucial:

  • Principal: The initial loan amount borrowed to purchase the property.
  • Interest Rate: The percentage you pay on the outstanding loan balance, impacting your monthly payments.
  • Down Payment: The percentage of the purchase price paid upfront, reducing your loan amount and potentially qualifying you for better rates.
  • APR (Annual Percentage Rate): This reflects the total cost of borrowing, including interest and fees, giving a clearer picture of the loan’s true cost.
  • Term: The duration of the loan, typically 15 or 30 years, influencing your monthly payments.

3. Preparing for Smooth Sailing: The Pre-Approval Process:

Getting pre-approved before house hunting puts you in a power position:

  • Know your borrowing capacity: A pre-approval reveals the maximum amount you qualify for, narrowing your search to realistic options.
  • Stronger offer potential: Pre-approval demonstrates your financial readiness, making your offer more attractive to sellers.
  • Faster closing process: Having pre-approved paperwork prepared streamlines the closing process once you find your dream home.

Choosing the Right Mortgage: Your Personalized Pathway to Homeownership

Finding the perfect mortgage is like unlocking the door to your dream home. But with so many options, navigating the world of loans can feel like deciphering a secret code. Don’t worry! This guide equips you with the knowledge and understanding to confidently choose the mortgage that aligns perfectly with your unique financial landscape.

1. Laying the Foundation: Key Factors to Consider:

Before embarking on your mortgage journey, take stock of your financial bedrock:

  • Home Costs: Determine your target home price range. Remember, your mortgage shouldn’t exceed a comfortable portion of your monthly income.
  • Income: Analyze your stable income sources and calculate your debt-to-income ratio (DTI). Ideally, your DTI should be below 43% for optimal lending qualification.
  • Credit Score: A good credit score translates to better interest rates and loan options. Aim for a score above 670 for the most favorable terms.

2. The Great Rate Debate: Fixed vs. Adjustable:

Each type of mortgage offers distinct advantages and drawbacks:

  • Fixed-Rate Mortgage:
    • Benefits: Predictable monthly payments, peace of mind with stable interest rates, ideal for those seeking long-term security.
    • Drawbacks: May have higher initial interest rates compared to ARMs, less flexibility if rates plummet later.
  • Adjustable-Rate Mortgage (ARM):
    • Benefits: Often features lower initial interest rates, provides access to larger loans with lower DTI requirements, suitable for short-term stability or those planning to refinance before the adjustment period.
    • Drawbacks: Future interest rates can fluctuate, leading to potentially higher monthly payments, less predictability for long-term budgeting.

3. Navigating the Lending Landscape: Conventional vs. Government-Backed Loans:

Understanding the loan origination source expands your options:

  • Conventional Loans: Offer competitive interest rates for borrowers with strong credit and sufficient down payments. Private lenders typically issue these loans.
  • Government-Backed Loans: Supported by federal agencies like the FHA or VA, these loans often require lower credit scores and down payments, making them ideal for first-time buyers or those with less stellar credit.

Remember: Your perfect mortgage doesn’t exist in a vacuum. Weigh your financial objectives, risk tolerance, and future plans. Consulting a reputable mortgage lender is crucial. They can analyze your financial picture, explain loan options in detail, and guide you towards the mortgage that unlocks your path to homeownership.

The Mortgage Application Process: Demystifying Your Journey to Homeownership

Securing your dream home involves navigating the mortgage application process, which might seem daunting at first glance. But fear not, aspiring homeowner! This guide breaks down the key steps into manageable phases, empowering you to approach the process with confidence and clarity.

1. Gathering the Required Documents:

To ensure a smooth application process, prepare the following documents:

  • Personal Information: Social Security number, driver’s license, passport (if applicable).
  • Income Documentation: Pay stubs for the past two months, W-2s for the past two years, tax returns for the past two years.
  • Asset Documentation: Bank statements for the past two months, investment account statements, retirement account statements.
  • Debt Documentation: Current mortgage statements, credit card statements, loan statements.
  • Property Documentation: Purchase agreement, home inspection report, appraisal report.

2. Submitting Your Loan Application and Paperwork:

Once you’ve gathered your documents, it’s time to formally submit your loan application. This typically involves:

  • Completing the Loan Application: Provide accurate information about your income, assets, debts, and credit history.
  • Submitting Supporting Documents: Electronically upload or securely send your prepared documents to your chosen lender.
  • Verification and Appraisal: The lender will verify your income and employment information, and order an appraisal of the property you’re purchasing.

3. Final Underwriting and Approval:

The underwriter evaluates your financial fitness and the risk associated with lending you the requested amount. This phase includes:

  • Credit Check: Your credit score plays a significant role in your loan eligibility and interest rate.
  • Debt-to-Income Ratio (DTI) Calculation: The underwriter ensures your monthly mortgage payment won’t exceed a safe portion of your income.
  • Conditional Approval: Upon meeting the lender’s criteria, you may receive conditional approval, which becomes final upon completing closing requirements.

Additional Tips:

  • Stay organized: Keep your documents readily available and well-organized for a smooth and efficient process.
  • Communicate effectively: Maintain open communication with your lender throughout the process, promptly addressing any questions or requests.
  • Ask questions: Don’t hesitate to ask your lender for clarification on any aspect of the process. Understanding the steps involved eases anxiety and empowers you to make informed decisions.
  • Consider professional guidance: Seek help from a trusted mortgage broker or advisor if navigating the intricacies of the application process feels overwhelming.

Securing the Best Mortgage Rates: Your Guide to Saving Thousands

In the world of mortgages, every percentage point saved translates to substantial long-term savings. So, mastering the art of securing the best interest rates is crucial for any aspiring homeowner. This guide equips you with the knowledge and tactics to navigate the interest rate landscape and lock in a deal that puts more money in your pocket.

1. Researching Current Rate Trends:

Staying informed about market fluctuations is key to making informed decisions:

  • Track Mortgage Rates: Utilize online resources like Freddie Mac, Fannie Mae, or Bankrate to monitor current mortgage rates for different loan types and terms.
  • Consider Seasonality: Historically, mortgage rates tend to be lower in the spring and summer. Aiming for closing during these periods might offer slight advantages.
  • Factor in Economic Indicators: Economic data like inflation and unemployment can impact interest rates. Stay informed about trends and consult your lender for insights.

2. Maintaining Good Credit:

Your credit score is the key to unlocking the best rates:

  • Monitor Your Credit Score: Regularly check your credit report and address any errors. Aim for a score above 740 for the most favorable terms.
  • Reduce Debt Utilization: Lower your credit card balances and avoid opening new credit lines before applying for a mortgage.
  • Maintain Consistent Payment History: A track record of on-time payments demonstrates financial responsibility and strengthens your credit profile.

3. Locking in Low Rates:

Once you find a favorable rate, don’t let it slip away:

  • Rate Locks: Ask your lender about rate locks, which guarantee a specific interest rate for a predetermined period (typically 30-60 days).
  • Shop Around: Compare rates and terms from multiple lenders to ensure you’re getting the best possible deal.
  • Negotiate: Don’t be afraid to negotiate your rate based on your credit score, down payment, or current market conditions.

Bonus Tips:

  • Consider a shorter loan term: While monthly payments might be higher, shorter terms often have lower overall interest costs.
  • Look for lender incentives: Some lenders offer lower rates for first-time buyers or loyalty programs for existing customers.
  • Be mindful of closing costs: Factor in closing costs associated with different lenders and loan options when comparing rates.
  • Seek professional guidance: Consult a trusted mortgage broker or advisor for personalized recommendations and expert negotiation assistance.

The thrill of purchasing your first home is exhilarating, but the process can also feel overwhelming. Fear not, aspiring homeowner! This guide sheds light on key aspects to prepare for, ensuring a smooth and informed journey towards making your homeownership dream a reality.

1. Gearing Up: Down Payment Strategies:

Securing an adequate down payment is crucial. While 20% is often seen as ideal, several options exist:

  • Save diligently: Prioritize budgeting and saving to accumulate your target amount. Consider boosting savings with side hustles or financial windfalls.
  • Down payment assistance programs: Research government-backed programs offering grants or low-interest loans for first-time buyers. These can significantly reduce your out-of-pocket expenses.
  • Gift funds: Family members can contribute towards your down payment, but check with your lender regarding specific regulations and documentation requirements.

2. Demystifying the Maze: Understanding Closing Costs:

Beyond the purchase price, anticipate additional expenses rolled into “closing costs.” These typically include:

  • Loan origination fees: Fees covering processing and administrative costs associated with your loan.
  • Title insurance: Protects you from any hidden property title issues.
  • Escrow fees: Third-party account holding property taxes and homeowners insurance, to be paid out with your mortgage payment.
  • Appraisal fees: Costs associated with valuing the property.
  • Government recording fees: Covers registering the property transfer with the relevant authorities.

3. Paperwork Powerhouse: Understanding Mortgage Disclosure Forms:

Once your loan enters underwriting, expect a flurry of important documents:

  • Loan Estimate (LE): Provides a preliminary breakdown of estimated closing costs and fees. Compare this to your Good Faith Estimate (GFE) received earlier to ensure consistency.
  • Truth in Lending (TIL) Disclosure: Outlines the loan’s terms, including interest rate, annual percentage rate (APR), and repayment details. Carefully review and clarify any questions you have.
  • Closing Disclosure (CD): Finalized version of the LE, reflecting any adjustments made during underwriting. This final document provides a clear picture of all closing costs and fees.

FAQ for First-Time Homebuyers

Q: How much down payment do I really need?

A: While 20% is traditionally recommended, there are options! Explore government assistance programs, gifts from family, or loans with lower down payment requirements. Remember, a higher down payment reduces your loan amount and potentially qualifies you for better rates.

Q: What closing costs should I expect?

A: Closing costs typically range from 3-5% of the purchase price. Be sure to review your Loan Estimate and Closing Disclosure documents carefully to understand all fees involved.

Q: What if I don’t understand something in the mortgage paperwork?

A: Don’t hesitate to ask! Your lender, real estate agent, or mortgage broker are there to answer your questions and clarify any confusing terms or calculations.

Q: How can I protect myself from hidden costs?

A: Stay organized and keep track of deadlines. Review all paperwork thoroughly, ask questions, and compare quotes from different lenders before committing.

Q: How can I make sure I’m getting the best deal?

A: Get pre-approved from multiple lenders to compare rates and terms. Research government assistance programs and down payment options that might benefit you. Consider working with a mortgage broker who can advocate for you and negotiate favorable terms.

Buying your first home is a thrilling adventure, but it can also feel overwhelming. By understanding the process, preparing in advance, and asking questions along the way, you can navigate the journey with confidence and excitement. Remember, knowledge is power!

Research, stay informed, and seek guidance from trusted professionals. Soon enough, you’ll be unlocking the door to your dream home, ready to embark on a new chapter filled with memories and milestones. Embrace the adventure, celebrate your accomplishment, and enjoy the journey of homeownership!

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