Obtaining A Mortgage -Best Rates and Qualifying
There should be no panic as the indication from the Federal Bank of Canada in late April 2021 is that if the Canadian Economy keeps surging we can expect rates will go up in 2022, However the increase will not be the same mistaken three point jump we saw a number of years ago but the expectation is smaller .25 to .5 increases as the ecomonomy's recouvery from Covid is a fragile step. There is signs of an increase in inventory of homes on the horizon whiich is ood news for buyers but do not think that there will not be a shortage of overall supply of Real Estate for sale for a number of years. We did to get into this shortage of supply situatin overnight and it will not change overnight. Now is the time to sit down and have a conversation anout you future real Estate plans with us in person or on the phone.
You are now ready to move forward, but do you know what you can afford. Most Canadian Banks are under very strict federal Government Qualification Guidelines. This is not your parents nor grandparents era where credit was very easy to qualify for as long as you paid your bills on time. Today numerous documents and details must come together in a very short period of time! Denise os a liceensed Mortgage Broker and we can work to get you into a position to have your mortgage funds in place prior to goig out to buy a home. Many deals are lost because buyers simply were not ready.
You likely would like direction on prequalifying for a mortgage. You should know a simple prequalification does not mean the lender is obligating themselves to mortgage the home in the selected neighborhood at all. Unless a proper process is followed a prequalification may only be a maybe which can lead to disappointment and frustration. The Dumbrell's use to own in addition to the 4th largest real estate company on Vancouver Island a multi location Mortgage company, trained many mortgage brokers and have that expertise to share to your benifit.
So when do you start? Now is a good time and what you need to do in preparation is below!
Our experience puts you one step closer i
. You will be asked at minimum for the following:
- Social insurance numbers – as well as birth dates
- Photo ID – generally a driver’s license showing your address
- Proof of employment and income which will include your CRA Notice of Assessment
- Employer’s name, address, phone number. Contact person for verification (copies of pay stubs & T4 copies if available)
- List of all credit cards and other loans with outstanding current balances
- Current saving, chequing and other accounts statements
- List of current assets, RRSP funds, stocks, bonds and backup valuations
- Liabilities – lender will want list of creditors, monthly payments, total balances due, including auto loans, student loans, credit cards, etc.
- Minimum 3 years residency and current rent paid
- You will need details on your purchased property including the contract but for pre-approval discuss this with Denise 250-248-9996.
- Down payment. You will be asked to substantiate the down payment and ensure it has been in your bank for 3 months, unless gifted or from equity in a property or asset being sold. Any questions just ask.
It can get more complicated if you are separated or divorced, had a bankruptcy, poor credit, disability income, guarantor loans, or even auto loans. Tip One Please do not go out and buy a new car , furniture or any major purchase on credit if you are preparing to buy a house without talking to your buyer representative. Your financial position when arranging a mortgage cannot change until your purchase has completed. We have seen lenders at the last minute withdraw their approval because the applicant has made these sort of financial changes.
Words and terms you should ask about: the mortgage term, charges, title details, lender point fees.
Is there more? Yes, we still need to discuss portability, insurance coverages, taxes (how they are paid) property maintenance planning.