I’ve had over 25 years of experience working as an Oakville mortgage broker with many homeowners using the service of a broker for the first time. Applying for a mortgage can be a stressful time for them and it’s easy to forget to bring things like the right paperwork, or not know what questions to ask. Having everything in order for your first visit can really help make the mortgage process go a lot smoother, so today I am going to share with you some tips for your first meeting with a mortgage broker.
This is the most important area because not having the right documents can hold things up quite a bit. Before you have that first meeting, make sure you have the following:
- 3 months verification of bank statements verifying your down payment
- Proof of employment and income, such as recent pay stubs, employment letter and the last two years T4’s
- Any details and information on other debts that you have, such as retail credit, student loans, and car loans.
- The purchase and sale agreement for the home you are looking to buy (if applicable)
- If you are self-employed you will need to bring two years of tax returns as well.
- If you are using a gift for your down payment, you will need a letter from the person giving the money that states the money is a gift and not a loan to be repaid.
Get Your Finances in Order First
An important aspect of getting a mortgage is your financial situation and what you can comfortably afford to pay back monthly. So, it’s important to take the time to work out a monthly budget to see what you have left over each month. Knowing what you can realistically afford will help when looking for a home to buy and eliminate any disappointments of finding out that home you love is beyond your means.
Another tip is to clean up your credit before you start the mortgage process. Go over your credit report to see if there are any issues or mistakes that need to be fixed. Even raising your credit score a few points can make a difference in how much you are able to borrow, and what your rate of interest will be on your mortgage. As your mortgage broker I can help you with fine-tuning your credit, so start the process early.
Getting a pre-approval is beneficial and gives you confidence when shopping for a home. Most home sellers and real estate agents will take you more seriously if you have a pre-approval and this is because having one shows them that you are serious about buying a home and that you are more than likely able to afford it. Sellers will pick buyers with pre-approvals over those without one in most cases.
Never be afraid to ask questions about anything you are uncertain of. Our job as Oakville mortgage brokers is to put you at ease and explain the process thoroughly. Things that you should ask are:
- Costs involved, such as appraisal fees and inspection reports
- Penalties for prepayments or paying your mortgage off early
- Mortgage term options and how long you will have yours for
- What pre-payment options are available to you
- Any conditions that are attached to the mortgage
The best thing to do before seeing your Oakville mortgage broker is to give them a call and find out what you will need for your first visit. It’s better to have more paperwork than not enough, so bring anything you think will help. If you’re looking to apply for a mortgage, give our Oakville mortgage brokers a call today!