Getting approved for a mortgage can be very stressful on first time home buyers... this article explains what is really happening!

When a person is pre-approved for a mortgage, the mortgage lender/broker simply means "based on what you say about your income, debts, down payment, credit, and the property, etc., you should be approved for a mortgage to $X." The lender seldom (never) reviews this information until there is a real deal and only then because it takes a lot of time and resources.

HOW TO CHOOSE A HOME INSPECTOR

The practice of making an offer to purchase conditional upon a home inspection is becoming more prevalent, but many first time home buyers have no idea how to choose a qualified inspector.

How to Maximize your Home Buying Options and Fast Track your Dreams!

So are you dreaming of buying your first home?  First time homebuyers can fast track the process by simply doing their homework. The following tips are a ‘must know’ for those navigating the home buying process:

The 3 knows of home buying!

1. Know what you want!  A starting place for every home owner begins with an assessment of where you go, what you enjoy and what is available.  A quick review of real estate listings in your areas will give you a  good idea of the inventory and price in that area.  The second step is to start walking in the neighborhoods you want to live in.  You may be the first to spot a “for sale by owner” sign or a new listing.  As well, you will become more familiar with the area.
2. Know what you can afford!  Examine your monthly expenses – What do you see?  Are you able to save a little extra every month or are you struggling to get by?  A mortgage consultant can problem solve with you to determine a course of action.  Sometimes buying can be cheaper than renting!  Answering this simple question will guide you toward the correct course of action - whether to continue renting, or you're close to a mortgage than you think!
3. Know your credit score!  Risk is everything when it comes to lenders deciding if you get a "best" rate, a “B” rate, or no mortgage at all.  Missed payments, unpaid collections, late payments or incorrect information all affect how you appear to the lenders.  I recommend all curious homebuyers check their credit BEFORE attempting an offer on a house.  Correcting credit errors takes time. 

Get connected!  Here's how a mortgage planner can help...

We can:

Currently in Canada, 1 in 5 in the work force are self-employed, a trend that is expected to continue and increase.  How does this impact getting a mortgage?

Yes, in Canada it is still possible to finance 100% of a property's value if you know the rules and criteria.  Here's an illustration of how a zero-down mortgage works today.

What if you knew up front that a nice new vehicle means a smaller / older house?  Would you still buy one? Would you want to know that before you signed that auto-loan agreement?  I hope so!

The credit score is used by most companies to decide if the applicant is a good credit risk or not. Equifax and Trans Union will calculate the numbers from the credit report and generate a number between 300 and 900.

Mortgages 101

When shopping for a mortgage, most consumers believe securing the best interest rate is their first priority.  However, obtaining the best rate does not always ensure you get the best mortgage!  A good approach is to look at the individual features of the mortgage as well. It need not be overwhelming!

Remember these five golden rules if you'll be applying for a mortgage:

#1. Clean up your credit history. A few months before applying for (or renewing!) a mortgage, review your credit report and check for any discrepancies. You can access your credit report from www.Equifax.ca or www.TransUnion.ca, where you can check your report for free, or call me.