If you're in the market to buy a new home, you might be one of the many who has to secure financing, otherwise known as a mortgage. The process can be a bit tricky, so we are going to help you along your way to homeownership by guiding you through the process of acquiring a mortgage from a bank or mortgage lender.
One of the most important things to keep in mind when shopping for the right mortgage option for you, is that not all mortgages are created equal. So we are going to outline some of the questions that you should be asking, as well as touching on some of the more frequently asked questions we hear from Ucluelet home buyers.
Step number one is to find a reputable mortgage lender or bank. This can be tricky, as you do certainly want to be working with someone who understands what you are looking for, has a positive reputation with their clients, as well as someone with whom you share an easy rapport. You want to feel comfortable with this person, because you are making big life decisions, and decisions are best made when we are well-informed, confident and comfortable.
You may want to begin your search for the right mortgage lender online, as there is a wealth of helpful information that has been shared by people who have gone through this process before you. Searching for 'top mortgage lenders' in your area, is a good start. This kind of broad search will give you some resources to begin your research, such as websites, and testimonials. Online reviews are a great way to learn about a company before you even make contact with them.
Another great resource for reliable input is by asking your friends, colleagues and family if they've had any good (or bad) experiences with attaining a mortgage. These first-hand accounts may lead you to the right lender for you, or at least, lead you away from a company that did not perform well in the past.
One of the most knowledgable people you can turn to for advice about where to get your mortgage from is your trusted REALTOR®. Most top REALTORS® will have a strong network of connections with mortgage companies who have provided excellent service in the past.
As with most major life decisions, it's recommended to discuss your mortgage options with a few of the top lenders that you are referred to.
We are going to walk you through some of the more important questions that you will want to ask each prospective lender. Having an arsenal of questions for the mortgage lender will not only help you be as informed as possible, but will also show that you are savvy in the ways of money, which is a helpful foot-up in any financial situation.
What type of mortgages do you offer?
The mortgage lender should be aptly knowledgable with all the options for you as a homeowner. You will want to know what are the pro's and con's of each option, relating directly to your own personal situation. If a mortgage lender has only one option available to you, and is not forthcoming with other possible venues that could be of service to you, then maybe wait until you get a second or third opinion before taking advantage of any offers.
What are all the costs associated with getting a mortgage with your company?
Another important piece of information you will want to have laid out prior to accepting any offers for a mortgage loan is to know exactly what fees will be associated with the mortgage. This varies from Provence to Provence, but in general you should be prepared for the 'closing costs,' which can include appraisal fees, land transfer tax, title fees and legal fees. Be sure to get an up-front explanation of what buying the house will cost you now, so that you're not blind-sided later, when you're already tied up in the mortgage.
How long will it take for my mortgage to get approved?
Of course, this answer will vary from bank to bank, and from company to company, but you will want to get the lender to provide you with an estimated time that you will be waiting before getting approved which is specific to your situation. This is especially important if there is a home that you have your eye on in the real estate market already, because if the finances aren't set-up properly from the get-go, you may lose your chance at putting in an offer on your dream home because financing hasn't yet been approved.
When you've found the right mortgage lender for you and your home buying needs, then there will be some initial paperwork required to be completed. Documentations such as your social insurance number, one month's worth of pay stubs, two years worth of T4's (or the like) are the most common forms of documentation you will be required to submit.
A few other pieces of documentation that are often requested by a mortgage lender to obtain a mortgage include:
Fully executed purchase contract
Copy of a void deposit cheque
Verification of employment
The above information should be enough to get you on your way to getting the mortgage you need to buy the Ucluelet home you've been dreaming of! If you have any more questions about what is next for you to start living in Ukee, please feel free to contact us.