Before you buy a home it's best to do some research and get your finances in order. Your credit rating is an intrinsic part of getting a mortgage. Most prospective buyers often aren’t aware that in their effort to shop around and get the best deal, they can lessen their chances of even being approved. Each time your credit rating is pulled by a bank or a credit union, it is considered a credit application, regardless of whether or not you end up engaging that bank, and your credit rating is affected.
We advise you to engage a mortgage broker. Your mortgage broker will pull your credit history once and then use that one “pull” to market you to prospective lenders (major banks, credit unions, finance companies, private lenders and trust companies), so that you can get the best financing and terms to suit your needs.
A mortgage broker saves you time and energy and provides personalized service, sometimes with flexible hours. They offer specialized knowledge and will work hard on your behalf and do all the negotiating for you. They can help you improve your overall rating by advising you which credit cards to use and which to leave idle during the process. A mortgage broker costs you absolutely nothing because they are paid by lending institutions, not you.
Depending on your province, mortgage brokers must be licensed and are therefore subject to strict requirements. Accredited Mortgage Professionals (AMPs) must take on-going education courses in order to maintain their accreditation.
A mortgage broker will review your financial situation and discuss with you your future plans and risk tolerance, and help you choose the right type of mortgage for you. They will assess your situation and create different scenarios for you. They will tell you the maximum dollar amount you can consider paying for a house for the payments you can afford, and what your weekly, bi-weekly or monthly installments will look like. They can also assist you by creating a strategy so you can pay off your mortgage sooner.
You can often find a good mortgage broker via your real estate agent, who has a vested interest in their clients getting the best rates and terms.
Bank Loan Officers
The loan officers at a bank, credit union or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all loans originate from their lending institution.
The loan officer will work within banking hours and he/she will take your application and try to find a home loan that suits your needs. If your personal credit is approved, the officer moves forward to process the purchase.
With a full range of personal banking solutions, your bank can help you reach all of your financial goals, from day-to-day banking to creating borrowing and investing strategies. Banks and credits unions may also offer bonuses like cash back, reduced fees or point program rewards for bundling your mortgage, credit card and bank accounts.
We advise you to do your research and find the best professional to help you achieve your goals.