Broker vs. Bank / Credit / Documents / Downpayment / First Time Home Buyer / Income / Insurance / Lenders / Pre-Approvals / Purchase / Qualifying / Rates & Terms / Rules / Uncategorized

Thinking of buying a property, but don’t know where to start?

Mortgage DocumentsThinking of buying a property, but don’t know where to start?

 

IT’S A PROCESS!

Step 1

In these uncertain times, I believe it’s important to get all parts of the process working together.  A pre-approval is one of the first steps you take, though, that’s after you find a good Mortgage Broker to work with. A pre-approval provided by an experienced Mortgage Broker details what documentation you will require ahead of time. They will also explain how to handle any obstacles that may come up, provide you with your mortgage options, secure a rate hold and will basically give you piece of mind in wading through the next steps of the whole mortgage process.

Let’s start at the beginning and determine why it’s more important than ever before to get a mortgage pre-approval due to recent mortgage rule changes.  The maximum purchase price you qualified for last year will likely not be the purchase price you can qualify for now. A pre-approval is not a 100% guarantee of financing but it determines what amount of money you can spend on buying a new property. It also allows you to decide what purchase price fits best into your budget with the amount of mortgage and property tax payments along with condo fees if applicable.

Imagine spending a couple of days looking at houses with a Realtor and finding that special home only to apply for the financing and being told you don’t qualify for the mortgage!  There are a number of factors that come into play after the pre-approval is in place that can derail your dreams of homeownership.

Bad things happen to good people too! Truth is, about 10-20% of credit reports have some kind of error on them. Take the time to have a look at your credit report ahead of time by visiting Equifax.ca and/or  TransUnion.com. Order the version that includes your credit score and if there are any errors, ensure they are corrected immediately. If you are having trouble understanding anything on your report, contact an experienced Mortgage Broker to see if you can send your report to them for help and guidance.

What is a Pre-Approval?

  • It pre-approves you, the buyer, though, not the property you want to buy
  • If you are qualified under your current employment status, changing jobs before you buy may create an issue.
  • Depending on how long it takes you to find a home and make an offer, a new credit report may have to be ordered by either the lender or the insurer. If you have incurred additional debts, your maximum purchase price may be reduced. Before you take on any additional debts, contact your Mortgage Broker to see how your original pre-approval will be affected.
  • Mortgage rules can change and sometimes come into effect with little or no warning.

These items may not sound like that big of a deal, but they could be the difference between qualifying for financing or not.

Another advantage of applying for a pre-approval is they come with a rate-hold. Interest rates can fluctuate and this way you are protected should the interest rates increase before you write an offer to purchase.  Lenders will typically offer a rate hold for 90-120 days while credit reports are only valid for 30 days.

Contact the MortgageGirl today and start that conversation about a mortgage pre-approval. Former banker turned Mortgage Broker. Put her 35 years of experience to work for you.  Contact the MortgageGirl on her website, Facebook, Twitter, email info@mortgagegirl.ca or call 780-433-8412

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