When & How To Find the Right Mortgage Professional
While it is my job and absolute pleasure to help you find your dream home, there are a few boxes you need to check in advance, so that you are ready to put in an offer and make confident choices in our fast-paced property market.
That’s where mortgage professionals come in. I recommend working with a designated mortgage specialist who can provide you with tailored services, and detailed knowledge of the mortgage industry. Like working with the right Realtor, choosing the right advisor can make all the difference to how smooth and stress-free your experience is.
When Should I Start?
It’s important to speak to a lender in advance of home hunting. A good Mortgage Specialist will review your financial landscape will reveal any areas that may need attention or where changes can be made so that you can lock in a better approval, rates or terms.
They will provide advice and coach you on actions you may need to take to be set up for success. Generally, this is
recommended 3-6 months in advance of a serious home hunt.
During this process, you will also be ‘pre- approved’ for a mortgage amount that will give you a budget for your home shopping. It is important to share this information with your Realtor, to ensure that they can provide you with the best properties that fit.
Our market in Victoria is hot, but please remember that you don’t have to choose a property that’s at your maximum mortgage approval amount. Take some time to think on it and decide what’s the best fit for your situation and your family! I am happy to help by providing different property types or areas to consider that might be a better fit than you those you had originally had in mind.
Beyond your initial purchase, mortgage professionals can continue to help you after you own your home. Don’t forget to seek their expertise on the best ways to manage your assets during big life changes such as new businesses, job losses, or divorce.
How Do I Make the Best Choice?
To start with it’s important to choose an experienced mortgage professional.
Enquire about their experience and credentials. Have they taken any additional licensing courses to enhance their knowledge? Have they been able to move up in their industry because they are good at what they do?
Look at the satisfaction of past clients through online reviews, do they come highly recommended?
Finding the Right Fit
You may want to speak with more than one advisor or broker before you decide who you want to work with, and that’s ok!
Communication is key. Your advisor should be able to explain your options to you in a clear and easily understandable way and to answer your questions confidently.
You should feel comfortable with them and be able to explain your financial situation openly. It’s important for your advisor to know the details of your financial past and your hopes for the future. Withholding information from them makes it harder for them to give you the best options for you.
Choose an advisor who is attuned to your needs and shows you options with an explanation of their pros and cons as well as any possible limitations.
- A low rate option may come with a 5 year period of restrictions which means you cannot refinance or transfer during that time. What does that mean if you were planning to use equity for home renovations?
- You are planning to make additional payments to shorten your mortgage term- Does the lender allow this or do they charge penalties for doing so?
**There have been some recent changes to federal policy that could affect your borrowing rules and buying power. These articles will provide an introduction, courtesy of Auxilium Mortgage, but it's important to speak to a professional who can provide guidance and sound advice.
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Having helped many clients over the years, I have been able to work with some stellar mortgage professionals. Here are my top 2 recommendations to help you in your home purchasing and owning journey!
Mortgage Specialist l RBC Royal Bank
Mortgage Partner| Auxilium Mortgage
250 590 6520
Mortgage Specialist | Designer Capital Inc.
250 217 1914
Broker vs. Bank
A Mortgage Broker is an intermediary who does not work for any specific bank or institution. They can shop around and compare rates with different lenders, and provide you with more options. Not all brokers work with all lenders, so it is important to ask your potential broker how wide their scope is. Additionally, ask what their fees are- brokers are typically paid by the lender, not by you, the borrower, but it's important to ask. Your broker should be 100% upfront with you on this, or it’s a red flag.
A Mortgage Advisor/Specialist who works for a specific lender (typically a bank) will be able to offer you options financed through that institution. If you’re already a client of that bank, this option may be more convenient, as they will already have access to your financials. There can also be additional perks for combining your financial products with one institution. You are not tied to only looking through your current provider but can shop around by meeting with more than one bank.