Home Buying Mistakes – Why Do People Talk to Realtors First?
Over the past 6 years working as a mortgage broker in Kelowna, BC, I’ve worked with some very stressed out clients. Usually those clients had already chosen a realtor, maybe they had viewed a few properties and were now ready to put in an offer. The only problem…they didn’t know if they qualified financially for the home they wanted to purchase.
When you hire a realtor first then go find a property that you love, stress tends to follow. Why?
You’ve found a house that is perfect and you’re hoping you can afford it.
You submit an offer to purchase, put up a minimum $5,000 deposit and are now hoping you can complete on the deal.
You contact your lender hoping they can help you qualify
You’re hoping you can find or obtain all your income documentation, job letters, down payment, etc in time to remove the financing clause.
You hope your credit is acceptable, that your down payment will qualify, that your parents or close family will provide you with a gifted down payment or co-sign for the deal
That’s too much hoping.
Let me describe a simple, alternative method that will get you the mortgage financing you need, make your home purchase journey less stressful, make your offer to purchase stronger and save you money throughout.
It’s basically just a change of who you contact first but this adjustment carries many benefits.
First – Getting your mortgage qualified upfront will provide you with a solid price range in which you can shop confidently, assurance that your income will qualify along with your down payment and verification that your credit bureau is clean. When qualification takes place up front, it allows time for you and your mortgage broker to rectify any issues regarding your income, down payment or credit before a house deal goes “live”.
Second – After qualification, your mortgage broker can provide you with a letter to be included with your offer to purchase stating that your income, down payment and credit has been verified. This strengthens your offer to purchase and ability to negotiate as well as increases the likelihood that your offer will be accepted by the seller.
Third – Along with qualification, your mortgage broker can submit your application to a mortgage lender to secure a rate hold. This protects you from changes in mortgage policy and rising interest rates.
Fourth – An upfront qualification gives a mortgage broker time to provide you education on the home purchase process, show you how to save money and craft your mortgage file just the way that lenders like!
Fifth – Now that the boring numbers stuff is done, you can carry out your inspections and appraisal (if required) without simultaneously having to worry about financing conditions or digging up income documents
There you go! A simple way to make purchasing a home easier.
For more home buying ideas please click here to access my free homebuyers’ guide.
Sincerely,
Michael
Huber Mortgage
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By the way, even the Bank of Canada thinks you should call a mortgage broker. And if you didn't know already... My services are at no cost to you!
“Clients who deal with a mortgage broker on average pay a lower rate than those who don’t.” - Central Bank of Canada Quote (March 2011)
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