Mortgage Pre-Approval
A lot of my clients always ask who to use to get their mortgage pre-approved Well here are some tips of the trade:
Self-Employed If you’re self employed I always recommend using a mortgage broker vs. the bank because they have access to a lot more lenders and may have better relationships with certain lenders vs others which in turn only benefit you. I’m not saying the banks are bad its just some may have more restrictions and demand a lot more paperwork. But all in all it comes down to who can offer you the best rate with the best terms.
Another recommendation is that I would stay away from financial planners/service people in the bank because these individuals do not have the same access or power to get you a lower interest rate. If going with one of the big banks always use a Mortgage Specialist because they work off commission and will do their best to get you pre-approved.
In addition make the mortgage brokers/mortgage specialists work for you. I always tell my clients if they already have someone to tell them that their agent’s mortgage broker/mortgage specialist may be able to get a better rate/terms, then you’ll see all of a sudden they’re able to match it. Remember every little bit will help when you have to make those mortgage payments.
Bidding Wars
Bidding wars are a big concern for most home buyers these days because no one ever wants to feel they over paid or bought a home that needs extensive work that they did not budget for. Here are a few tips to prepare before putting an offer in:
- Get pre-approved first because in many cases the offers in bidding wars that win are usually the ones that don’t have any financing clause or home inspection clauses.
- Do a home inspection before the offer date, that way you will know if there are any possible costs that you may not have budgeted for.
- Have your real estate agent show you the comparables to verify the value of the home because banks will also tend to send in an appraiser and if you have over paid the bank will not give you the mortgage for the amount you paid but only for the amount they feel its worth.
- Have a good amount for the deposit to show the sellers you are serious and if possible get a bank draft or certified cheque along with the offer.
- Try to be as flexible as possible for closing date.
- Have your agent market you,the buyer, in the best possible way because some sellers actually care about who will be living in their home after they move out.