FIRST TIME HOME BUYERS

So you are ready to give the homebuying experience a go…

you’re starting at the right place!  

Exciting and a bit scary the first time, but get the guidance you need to make it more enjoyable! See if any of these common questions match your own:

First Time Buyers FAQ's:

What does a Mortgage Broker charge?


Mortgage Brokers typically do not charge you any fees. Years ago, and with some unusual situations, brokers have charged fees. This misconception often keeps buyers away from the opportunities of what brokers do for you!




What does a Mortgage Broker do that is different from my bank?


We get the banks to compete for your business! Think of us as your personal shopper. We take your information once, and then shop the banks for you and come back with options that you get to chose from. We are unbiased, which means we don’t just have our in-house bank offer, we have many and our interest is in your choice only. So, you don’t have to run around and go through the process over and over to compare offers. Easy!




What are the first steps to a mortgage?


Start by having the conversation with your Broker. The most important step is the “PRE APPROVAL”. This step is quick and easy. We take your information, look at your credit history and job situation and tell you what the banks will give you for financing. Once you have this information, you know exactly what you can afford to buy, and what it will cost you each month. From here you can say “GO”, and we head off to the banks for offers, or “WAIT”, I need to get better prepared.




What things should I have ready for my Mortgage Broker at the time of my application?


We are going to ask you about your job, income, savings for down payment, credit history. Keep in mind that each person is different and we work with you to get you prepared if you’re not yet. Sometimes it’s a few months of preparation, and we will give you that advice if it’s needed.




Why is good credit important?


All lenders have access to your credit information, and you want to be in good standing with your credit at the time of applying for your mortgage. Good credit means easy access to best rates and smooth transactions with the banks. Here are some tips on keeping your credit healthy: 1. Keep a prompt payment history. This means make your payments on credit cards and loans on time. Some credit companies will report a late payment if it exceeds one day beyond due date. For most companies, every 30 days, but plan to make it a few days earlier to ensure its covered on time. 2. Keep credit card balances below their limits. The state of credit card balances vs. credit available, can affect your rating. If your balances sit on or above your limit, it will report a derogatory message and can reduce your “credibility”. 3. Watch for extended credit. Too many credit facilities can also cause red flags for lenders. If you have several credit cards, as well as lines of credit and loans, this may reflect as “credit seeking”. Ensure they all fit within your means as this will be part of your debt load when trying to qualify for a mortgage. Most lenders use 3-5% of the balance as a payment for each debt, unless it’s specified differently on the report. 4. Don’t credit seek. This means frequently requesting credit cards and loans, and can also affect your scoring. This is where a mortgage broker can help as they pull your credit once during the application process, saving you the exposure you’d experience through shopping on your own at numerous banks. 5. Pull your own credit report. It’s your right, and in your best interest to pull your credit as much as once per year. Doing so gives you the opportunity to correct any errors or misinformation that may be there. You can do this online at www.equifax.com. To understand your credit scoring there are many factors to consider. It’s a mathematical formula where various conditions are weighed and balanced and given a certain percentage value towards your final score.




What if I have bad credit?


For help in understanding your credit rating, please feel free to give me a call to review the report with you should you choose to look into it prior to borrowing. If you have past financial problems such as bankruptcy or foreclosures, or credit collection history, there are steps you can take to re-establish your credit and get you back on track for future borrowing. I can also help with these inquiries and recommend solutions as well as refer you to companies and associations that help with scarred credit. It’s never too late to get started on credit, or to repair it!




I want to buy, how do I get started?


Congratulations, you're about to change your life! If you are ready to get started, or want to find out more about your options, quickly fill out a simple application: Simple Application