You’ve most likely spent the better part of the last year or more working hard to pay off your debts, added to your savings to accumulate your down payment plus a little extra and attended many open houses to find your dream home. With an accepted offer, now it’s time to become a homeowner and close the deal.
But before you place an offer, you should make sure to go through the pre-approval and approvals processes first. You have to do the background work and this will ensure that it isn’t forgotten. A mortgage broker can help get you started.
There are a few tips we have that will help you to prepare for negotiations on your first mortgage:
The Prepared Early Bird Gets The Worm
Whether you decide to go with a bank or hire a mortgage professional to assist you, your loan officer or mortgage broker will be happy to start your mortgage pre-approval. Next, you’ll also need to provide:
An up-to-date credit report
Your income tax assessments (last two years)
An account of your income and debts
Once you’ve done this, you also need to ensure that you have your down payment and closing costs covered (roughly 2 percent of your purchase price). Your closing costs include your insurance on your mortgage, legal fees, title insurance and your land transfer tax. Utility deposits may also be another consideration or preparation. If you’ve purchased a condo, be prepared to also pay maintenance fees.
Know The Basics & Learn about All Your Options
A mortgage broker is probably one of the most useful resources you’ll have at your disposal when buying for the first time, so make use of them. They can help to educate on things like how they get paid (from financial institutions (not your pocket), teach you about the difference between fixed-rate and variable-rate mortgages and open and closed mortgages. They’ll also inform you about other important features such as pre-payment options. This will definitely cut down your research time.
Know What’s Best For You!
One thing is for certain, life is unpredictable and a baby or a promotion that involves a relocation could come when you least expect it. No matter what happens you want to avoid any hefty penalties at all costs, when it comes to breaking the terms of your mortgage loan.
Your broker will ensure that you’re aware of your lenders break fees associated with ending your mortgage early prior to buying a home. If you’re buying a fixer-upper, then you’ll certainly require a mortgage solution with a line of credit as well.
It’s our job as your mortgage experts to make you feel entirely comfortable as a first-time buyers. One mortgage solution does not fit everyone, and many have expensive restrictions. It’s important to find the right option that’s in your best interest.
Don’t Go With Your Bank, Just Because It’s The Obvious Choice
Yes, we understand that you have a long-term relationship with your bank, but it doesn’t necessarily mean that they’re the most experienced to help your with your mortgage loan. There are many other lenders that can do the same, or even better.
You need a financial plan that includes the whole picture and future financial goals such as:
Retirement savings and investments
College or University tuition for your children
Home improvement investments
A mortgage broker always digs a little deeper to help you create a comprehensive financial plan for today, tomorrow and for 50 years from now.
If you’re not a negotiator at heart you don’t have to worry so much about it with an experienced mortgage broker by your side. They’ll do all of the legwork including negotiating the best deal for you.
When we say Yes! We stand behind our promise.