A Beginner’s Guide To Getting A Mortgage
Availing a mortgage is a great way to raise the finance needed to buy a home, start a business, or pay off a debt. Mortgages tend to be cost-effective as interest rates are substantially lower because the mortgage is secured against your property.
While mortgage acquisition advantages are undeniable, depending on your credit history, employment status, and urgency in closing, getting a mortgage can be a rather challenging proposition. People tend to overlook the thought and planning that goes into every mortgage application and the role the mortgage broker plays in overall success.
To help you on your path to a mortgage that fulfills your needs, the expert at Nola Stairs has put together a beginner’s guide to getting a mortgage that will hopefully make things easier.
Getting Started
Do your homework, research, plan, and be prepared
Before you apply for a mortgage, there are a few things you need to know and prepare for. To begin, if you want to qualify for a mortgage on your first try, it’s crucial to understand how big of a loan you can reasonably afford, so decide on an attainable budget. Next, do your research to gain an understanding of the mortgage products available to you. During this step, it’s wise to ask as many questions as you can.
After deciding on a budget and researching your options, another essential step is, preparing for the mortgage by improving your debt-to-income ratio, saving up for a down payment, boosting your credit score, and getting your paperwork in order.
Next Steps
Have the mortgage pre-approved
A pre-approved mortgage should not be confused with mortgage pre-qualification. Pre-approved mortgages are more involved, ensuring a more accurate approved mortgage amount. Getting pre-approved for the mortgage has the benefits of showing the seller that you are serious about the purchase and helps negotiate a better price. Additionally, pre-approved mortgages demonstrate your creditworthiness to the seller for the purchase amount and go a long way towards reducing timelines and delays, ensuring you close the mortgage quickly.
Submit documents and apply for the mortgage
Diligence is the name of the game during the submission of documents for your mortgage application. You would have to submit proof of identification like your passport or driving license, proof of employment, and pay stubs or T4’s as proof of income. Similarly, you will need to provide information about your assets, such as a car, cottage, or boat, and, additionally, you will need to detail your debts and financial obligations.
When submitting your loan application form, it is essential that you do not make mistakes or misfile necessary documents, as this can lead to delays, rejections, disappointment, and a waste of your valuable time.
Advice From The Pros
Be upfront and completely honest about income and credit history
It might seem harmless to alter information on your mortgage application to make your situation look better. We all want to get the best mortgage we can afford at the best rates. However, if you inflate your income or fail to reveal where the down payment funds originate, you risk losing the home if you default on payments. Lying on mortgage applications is also considered fraud and illegal in Canada.
Trust your mortgage professional and follow their guidance
It is wise to remember that mortgage professionals come with years of experience and mostly understand which mortgage product is best for you. It is essential that after you have made your decision and chosen a mortgage broker to represent you, you take their advice and follow their guidance to ensure a successful mortgage experience.
At Nola Stairs, I serve clients efficiently, sharing my knowledge of the different mortgage programs, and offer free mortgage advice. As a leading mortgage broker and realtor in Prince George, BC, I ensure that I exceed expectations and always put you first. I provide first mortgages, private mortgages, mortgage refinance, line of credit, reverse mortgages, etc. As a realtor, I offer residential real estate, assist in sales or purchases, and act as an agent for either the buyer or the seller. My services are available to clients across Prince George, Quesnel, Vanderhoof, Mackenzie, McBride, and Tumbler Ridge, BC. Visit my website to learn more or contact me at Nola Stairs today.
