Why Use A Mortgage Broker? - Getting Your Home in 6 Steps
A Mortgage Broker is with you every step of the way. From the very early stages of your home buying journey right through to moving day, a Mortgage Broker can help you navigate the complexities of complex Getting a Home in 5 Steps:
1) Meet with a Mortgage Broker
Before you even start looking at houses, you should meet with a Mortgage Broker. You'll discuss your home buying or other borrowing goals related to a mortgage, your family income and assets, the size and source of your down payment, and any liabilities. Your Mortgage Broker will ensure all of your questions or concerns are addressed before developing a mortgage plan that is customized to your needs. The goal is to secure a mortgage with a very competitive rate and the right features to achieve your financial and home-buying objectives.
2)Evaluate Your Purchasing Power
It's a good idea to determine the amount of mortgage you can qualify for before you start house hunting. If you qualify for a pre-approved mortgage, you'll be confident in the how much house you can afford and you'll have a guaranteed a rate for a specific period of time. If you don't qualify for a pre- approved mortgage, your Mortgage Broker will help you explore other options and estimate your mortgage-qualifying amount. With an idea of your purchasing power, you can confidently make an offer on your home.
3) Loan Submission
Once you've made an offer on a home, your Mortgage Broker will help you complete a mortgage application. This application will go to the lender (or lenders) that the two of you agree on. Lenders are selected based on the objectives you've discussed, and your Broker's knowledge of which companies can best meet your requirements. Your lender may need an appraisal of the property, and may verify your employment, mortgage or rent amount, and your down payment. Your lender will look for:
4) Sufficient established credit
Proof you can afford the mortgage, such as stable employment, tenure or length of self employment)
Property condition and marketability
In today's new mortgage world, if you have strong credit and a large down payment, income verification may not be required. Your Mortgage Broker will explain the kind of documentation you need to provide. Once the lender reviews all of the information submitted, you and your Mortgage Broker will then get an approval and will review any "prior to funding" conditions. You will sign any approval documents, including:
- payment details
- mortgage terms and conditions
- outstanding "pre-funding" conditions, if any, that must be met. You need to make sure these are met and forward any required documents. *Once you have approval you can waive any financing conditions that you may have placed on your offer.
5) Get Ready to Move
After your mortgage is approved, you'll make an appointment to meet with your solicitor to provide identification, sign documents that relate to your new home, and review your closing costs. Now you can prepare to move into your new home.
On the day you take possession of your home, your mortgage funds are sent from your lender to your lawyer. If, as part of your mortgage, you've re-positioned high-interest debt at a lower mortgage rate to save on interest costs, your lawyer will direct you in paying off those debts. You did it - you and your mortgage Broker have together accomplished an important financial milestone. It's time to move in and enjoy your new home.
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