There is no such thing as a dumb question. In fact, the smartest thing you can do is ask the most basic question you can think of. The MortgageGirl welcomes and encourages her clients to ask all kinds of questions during the complicated mortgage process.
Some of the more common questions the MortgageGirl gets are:
1/ What is your best rate – These days, with the recent changes to mortgage qualifying rules, there is no longer a simple answer. If you see a low advertised rate, be prepared to answer several initial questions to determine if you qualify for that super low rate. For instance, is the property owner occupied or a rental, what is your income versus your current debts and what percentage of the purchase price is your down payment?
2/ We are first time buyers and don’t know where to start – The first step is to apply for a pre-approved mortgage with an experienced mortgage specialist. The MortgageGirl who has 35 years of experience can advise very quickly how your finances look and if you need to make any changes before you buy. She will also send you an easy to understand First Time Home Buyer guide with helpful tips and hints.
3/ What can a Mortgage Broker do that a bank can’t? – A Mortgage Broker working with multiple lender options means they truly SHOP for the best products and rates for you instead of simply offering the limited products available through a single bank source. Mortgage Brokers work EXCLUSIVELY in mortgages so they are mortgage product specialists rather than banking generalists
4/ Why do I need to provide the most recent 90 day transaction history for my down payment?- Due to the Money Laundering and Terrorist Act of Canada, you are required to provide a full 90 day history of the account or accounts (savings, chequing, RRSP, mutual funds etc.) where your down payment currently is. For any deposits over $1,000, the source of these deposits must be proven, excluding payroll. Any statements provided CANNOT be altered in any way (example: blacked out)
5/ Can I buy a house with bad credit? This really depends on how bad your credit is, where and what you are buying and how much money you have for a down payment.
6/ I already own 2 rental properties? Can I buy another one?- The answer is yes, but, you may not be approved by all lenders. This would be a time when working with an experienced Mortgage Broker versus a bank may make the most sense
7/ I want to refinance my house. How much equity can I access? Under Federal Government Mortgage changes you can only access up to 80% of the value of your house, UNLESS, you qualify under the relationship breakdown program between current property owners. Under this second scenario, you may be able to refinance to up to 95% of the current home value.
As always, if you have any questions or would like mortgage information, please do not hesitate to contact Jackie at 780-433-8412 or firstname.lastname@example.org. Stay in the loop by following on Twitter @Mortgagegirlca.