Buying Edmonton Real Estate, get Pre-Approved for a Mortgage First!
The first
step in home buying is always getting prequalified for a mortgage. It saves you, the buyer, a world of heartache
and stress. A prequalified buyer can
confidently look at homes they know they can afford and know they can buy.
Who should you go to for prequalification?
Many people
think the first place to start is going directly to their bank. While the bank
certainly can prequalify you for a mortgage, choose this option ONLY IF you
have an established relationship with the bank that includes investment products.
In other words, make an appointment with your bank if you have enough money
that the bank wants to keep you happy. If
this is the case you will likely get good, timely service. The banks want to keep your money where it
is, with them. They will likely give you
their best rates up front. Sadly, this often
isn’t the case for everyone else. I
still recommend double checking your rates through an experienced mortgage
broker, just to be sure. At the end of
the day, if you can save a few thousand, does it matter if you filled out the
paperwork sitting in the banks office, or at your home through a mortgage
associates?
For
everyone else – Go directly to a
Mortgage Broker**. Chances are, the
mortgage broker deals with your bank anyway.
These guys all work on commission, and do not work for the big banks.
They work hard for your business. Unlike
their salaried counterparts sitting happily in their offices in the branch, if
you don’t get a mortgage, mortgage associates don’t get paid. They will do whatever they can to make sure
you get the mortgage you want and your file goes smoothly.
Additional,
by selecting a mortgage broker you will have a larger variety of lenders to
choose from, and typically, you can get better rates.
**Remember,
not all mortgage associates or brokers are equally efficient or
experienced. Email me for a list of
tried, tested and true Mortgage Associates (mortgage brokers) and mobile
mortgage specialists.
What information will the lender ask for:
Your bank
(aka lender) will start asking general questions about your income and debt load. It is VERY important that you provide them
with all the information they ask for.
Commonly overlooked items are cars that you co-signed for, or store
credit cards you forgot you have. If you
have too much credit, you will have a hard time getting a mortgage! Once you are comfortable working with that
mortgage agent, they will get your permission to pull your credit report. They may also need a letter of employment
from your employer, copies of bank statements showing that you actually do have
the down payment and copies of your tax assessments for the last 2 years. If you are self-employed they will need much
more than that, so I hope you kept good records. Getting these things can take time – that’s why
you need to work on it right away. Many
a buyer has lost their dream house to another interested buyer because they
couldn’t get their documents to their mortgage broker before their condition
date.
Now you
have your documents in, you are prequalified (or preapproved)! You are ready to write up an offer. You can look at houses in price ranges you
know you can afford and if you see the house for you, you can write the offer
with confidence!