Tips and Strategies

Your mortgage application will be much smoother if you follow these tips.

If you're in the market for your first home, the process may seem pretty daunting. Here is a list of things you should know that could save you thousands of dollars and minimize home buying regrets.

When you’re entering the world of real estate and buying and selling property, you want to have a great team of professionals behind you who put your best interests first. At the heart of this team, and where your mortgage journey should begin, is the mortgage broker. But what does a mortage broker broker do, and how does working with one benefit you?

TOP FIVE REASONS TO USE A MORTGAGE BROKER

1. Save time and money: When you use a mortgage broker, you can save time and money. Instead of applying at the lenders yourself and potentially lowering your credit score, your mortgage broker should do all the legwork for you. Not only can this save you time, it can save you money. If your broker finds a lender offering a mortgage with a lower rate, that could mean thousands of dollars in savings over the life of your mortgage.

PREPARING FOR MORTGAGE PROCESS

Getting approved for a mortgage could be the most important step in the home buying process. If you weren’t already pre-approved, you’ll begin your mortgage approval process after you’ve made your Offer to Purchase and your offer has been accepted. Your Offer to Purchase will be conditional on financing, which means you need to secure your mortgage approval before you can move forward with your home purchase.

The mortgage approval process is similar to a mortgage pre-approval: you’ll need to provide your mortgage broker or lender with specific details about the home you’re purchasing, along with your income and down payment details.

Some of the documents you may need to provide include:

Image by Sam Moqadam

PREPARE YOUR CREDIT

To receive the best mortgage interest rate, it is important to prepare your credit for the loan application. Cleaning up your credit report and increasing your credit score will improve your chances of getting approved for a home loan. If your credit’s already good, maintaining it will be key to locking in a low-interest rate.

Learn the best way to build your credit for a mortgage.

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FIRST TIME BUYERS

There’s nothing like the excitement and anticipation of buying your first home – but it can also come with a lot of pressure as you step into the complex world of mortgages and financing...