A Beginner’s Guide To Applying For A Mortgage
Once you’ve decided to buy your first home, there’s a good chance that you’re planning to obtain a mortgage to finance the purchase. Acquiring a mortgage can seem intimidating and complicated to most first-time homebuyers, but it doesn’t have to be. When you prepare appropriately and have the right professionals to assist you, applying for a mortgage is pretty easy.
As a mortgage broker, I understand how hard the process of getting a mortgage can be, especially if you are a first-time homebuyer. This is why I have written down a Beginner’s Guide to applying for a mortgage. In this guide, I’ve laid out the steps to ensure your mortgage approval goes smoothly.
Hire a professional: Hiring a mortgage broker to assist with your mortgage approval means you are hiring someone who is independent and unbiased. Mortgage brokers tend to be self-employed, so they are incentivized to be creative by thinking outside the box and preparing you for all the steps needed to get you approved for your new home. They will be able to point out anything you may not be aware of or weren’t considering as part of your mortgage approval. Because we work with over 30 different lenders, when you are ready to pull the trigger, we will negotiate for the best interest rate for your unique situation.
Download a mortgage app: Download a mortgage app to assist you with calculating all things related to your future home purchase. A mortgage app will give you the power to take control of your financing and find answers to your questions right away. You can also try using the mortgage calculator on my website as well.
Plan ahead: There are a lot of different variables that go into being approved for a mortgage, and many of those variables require time, so they are addressed properly. For example, your credit may not be established enough when you go to apply for a mortgage. It may take another one to two years to correct your credit so you can avail of a suitable mortgage. If you find this out early in the process, you can address it during the beginning steps while saving for your down payment.
Establish a stable career: Purchasing a home brings many new variables and extra costs that you will not be used to. Ensuring you have a stable income will allow you to create an accurate budget of what you know you can afford and what you will be able to save. Stable employment is also a key consideration for mortgage lenders when determining borrower eligibility. Generally, steady employment means stable income and the ability to repay the mortgage on time. If you are self-employed, you will want to make sure your business is established and that you can provide a strong two-year history of consistent income earned from your business.
Don’t take on any new debt before applying: One of the most common reasons you may either be declined or receive a significantly reduced mortgage approval is because you have come into the application process with too much consumer debt. This means car loans, credit card balances, lines of credit, consolidation loans, etc. Before you begin the process of applying for a mortgage, make sure you have done all that you can to payoff or minimize the amount of debt you are coming into the application with. This won’t just help with your approval but will ensure you can afford your home and don’t end up being “house poor,” which is far too often a reality.
Advice From The Pros
Be patient: Nothing good ever happens overnight. So be patient with the process and trust your mortgage broker.
Ask questions: The best way to learn is by asking questions and taking notes along the way. You can ask your broker all your questions, connect with a realtor, real estate lawyer, and home inspector and allocate your questions to them.
Find your team: Make sure you interview mortgage brokers, realtors, real estate lawyers, and home inspectors to ensure you know who you will be trusting to help you with this major milestone. These are professionals you will likely be working with for the life of your real estate journey, so make sure you have a foundation of trust and transparency with each other. Take your time, and make sure you are working with professionals you feel comfortable with. This can be a daunting task with so many unknowns, especially when doing it the first time.
If you are looking for a mortgage broker in Victoria, BC, then reach out to me, Cody Rowe. As a mortgage broker and credit specialist for Canada’s largest national mortgage brokerage, Dominion Lending Centres, I am an expert in assisting clients to create and implement long-term strategies to assist them in achieving their real estate goals. With access to a vast network of major banks, credit unions, trust companies, and alternative lending options, I can ensure the correct solution for your unique situation. I offer services like first-time home buyer mortgage, mortgage renewal, mortgage refinancing, debt consolidation mortgage, reverse mortgage, second mortgages, private mortgage lending, self-employed mortgage, investment property mortgage, CHIP reverse mortgages, etc. My services are available across Comox, Vancouver, Campbell River, Victoria, Mill Bay, Cobble Hill, Duncan, and Nanaimo, British Columbia. To learn more about how I can help you, please click here. If you have any questions about mortgages, please get in touch with me here.