Buying a Home, Your Most Expensive Purchase
In today’s fast paced world, everyone is rushing to get things done now. The same applies to real estate and financing. The sellers want to make sure sales are firm, buyers want to make sure they satisfy conditions on time, and other parties involved need to do their due diligence and administrative work.
This often creates a lot of confusion and stress for buyers and sellers. Good news is, it does not have to. Since buying a first home is usual the single largest purchase individuals undertake. Being well-educated about the process, knowing what to expect and being prepared can make the home purchase process a breeze. In this example, I will be discussing the mortgage application process from the buyer’s perspective and what they should be doing before they actually put in an offer. But before you begin, no matter how well prepared you are, make sure you are working with professionals you trust.
Meeting Your Mortgage Consultant
The first thing any perspective buyer should do is meet with a mortgage professional. CAAMP is the organization that monitors mortgage professionals, so ask if yours is a member. Whether you see a Broker or Mortgage Consultant it does not matter, both will be able to analyze your financial situation and advise you how to proceed usually for free with no additional cost. Remember, the mortgage application is a full disclosure process, so give a detailed status of your financial situation. This means any income you have (wages, bonuses, support payments, second jobs, rental income) and also any debts and financial obligations you have (credit cards, lines of credit, student debt, mortgages). Your conversations with your mortgage professional are confidential and adhere to PIPEDA regulations.
I personally, like to not only review my clients information but, also educate them in the process. This makes them feel confident in their decisions. When I first meet a client, we discuss where they are in life, what they want to accomplish and where they want to be. Knowing such details allows me to recommend certain actions or steps along the way to save them money, but also attain their goals.
First time you meet with your Mortgage Agent make sure you bring the following documents with you or have them ready at your home for review. The more documents you have ready the faster your application can get processed, and the less time you have to spend constantly sending documents. The first list is for buyers who are employees and have either salary or hourly pay. Buyers who are Business for Self (BFS) will need these documents. As you can see they have many things in common, but the differences stand out in the income verification documents.
The mortgage application is sometimes daunting. Having to figure out all your costs, and expenses and payments and income, who has time. Don’t worry, no one gets it 100% right the first time. This is where an experienced professional comes in to help you organize your life’s finances. A good mortgage agent will be able to show you how to cut down debt, show you where you can save money, pay off your mortgage faster and save thousands in interest. Even put you on a plan to get debt free or save for down payment.
Below is a link to a standard Mortgage Alliance Company of Canada Mortgage Application. Also, the company website has a link to a direct online application. The first page is also included to show you how much information is needed and what you should prepare before applying for a mortgage. The more information you have ready the smoother the process will be. TMACC Application
To be continued……