Putting your trust in a stranger when it comes to a significant financial choice, like purchasing and financing a new house, might be unsettling. During the course of looking for a home, putting in and negotiating an offer, and completing the purchase process, you usually come to know the people you are dealing with quite well.
The timetable is frequently compressed when it comes to applying for a mortgage, and financing can be obtained in a few quick meetings or phone conversations even if you are applying for a bad credit mortgage.
How can you tell if this person or the bank is trustworthy? How can you be sure that your house loan is a decent bargain and that you aren’t being ripped off? Here are a few pointers to help you discover more about the mortgage experts you’re thinking about working with and reduce your chances of being ripped off.
1. Obtain a Mortgage Pre-Approval
This will enable you to start learning about the mortgage process, identify the price range of properties you should be considering, and strengthen your offer when you find the property you’d want to purchase (particularly helpful if this is your first purchase.) You will also have the opportunity to get to know your mortgage representative by completing this stage. You’ll observe how accommodating and responsive they are. A trusted mortgage broker can help you get a mortgage pre-approval.
2. Evaluate Various Loan Estimations
Don’t automatically assume that the first private mortgage lenders or brokers you speak to will offer the best rates. Even if your real estate agent suggests someone, it doesn’t necessarily indicate that their prices are the most affordable. Request loan estimates from various businesses and compare the costs. It’s simple to compare mortgage professionals because they are all mandated to use the same forms. There are tools such as “Compare My Rate” that takes the guesswork out. To get a comparison based on the cost of the loan over five years, the principal paid over five years,the total interest percentage, the annual percentage rate, rate and the total of the loan, you simply upload and use the tool of your choice.
3. Provide Complete Information
When there is a misunderstanding or some crucial information is lacking that affects the transaction; it is common for shocks and frustrations to arise during the alternative mortgage process. Be sure that all the information you are providing is accurate, even though the mortgage representative should ask detailed questions in order to give an exact estimate. Say so if you are unsure about a specific item; it is preferable to wait while obtaining all the necessary information than to wait and receive the wrong price and later be disappointed.
Make sure, for instance, that your mortgage broker in BC is aware of your intended use for the property (as a primary residence, a vacation home, or an investment property), whether you intend to change jobs soon, whether you are self-employed, and whether you intend to incur any new debts prior to the loan’s closing.
