Hi everyone! Michele Ellis here, welcoming you back to the Mortgage Studio Blog. It’s the start of May and the spring housing market has been keeping me pretty busy – and if any of you are out there searching for a new home or mortgage, you can probably relate! This is always the biggest season for mortgages, and especially here in BC where the housing market is white hot! So I thought I’d take some time this afternoon to pass along some mortgage advice right when you might be needing it the most:
Tip 1: Understand Your Personal Situation
Buying a home is a significant life event no matter who you are, but that doesn’t mean that it’s the same for everybody. Before you even start searching, it’s important to understand exactly what kind of home and mortgage would fit into your life. Do you know what your credit score is, or if it needs to be improved before you can apply for a mortgage? What sort of budget do you have or need? Do you have savings you can draw down to pay your mortgage more quickly, or enough to make a down payment (what kind of down payment can you expect, anyway)? These are all questions you need to consider before you can even begin to start looking for your perfect home – and if you’re not sure how to answer any of them, my phone number is 604.892.4647 and I’m eager to help!
Tip 2: Get Pre-Approved For a Mortgage
If you’re serious about becoming a homeowner, you want to make the best impression possible on the sellers and real estate agents you’ll be dealing with – especially during the busy spring season, when they’ll likely be getting lots of competing bids. One of the best ways to do that is by getting pre-approved for a mortgage, which means that you’ll be qualified for your perfect mortgage before you even make a single offer. Getting pre-approved by a lender doesn’t cost anything and comes with no strings attached, but it increases your bargaining power and lets you shop for your home with confidence. On top of that, your pre-approval comes with a rate guarantee so you don’t have to worry about mortgage rates shooting up while you’re searching. Sound intriguing? Give me a call at 604.892.4647 and I can help you get pre-approved today!
Tip 3: Do Your Due Diligence
The Canadian mortgage industry is a complicated, ever-evolving landscape, and I’ve written before about just a handful of its changing nuances. As a mortgage broker, it’s my full-time job to understand all this complexity, so I know full well how daunting and difficult it can be for someone who has their own complicated job and life to deal with already.
To get your perfect mortgage, it’s necessary not only to understand all the different aspects of the B.C. mortgage industry (did you know you can pass on TFSAs and RRSPs to pay down your mortgage, for example, or that CMHC just increased its homeowner mortgage loan insurance premiums?), but also to understand how to use that information to your advantage when shopping for rates between dozens of lenders.
You can do all that due diligence on your own, and it’s absolutely a good idea to get a basic understanding of the market when searching for a mortgage. But the best tip I have for you if you’re looking to buy a home in the spring 2017 market is this: consult a mortgage broker and let them do your due diligence for you. I’ve been a professional broker for 20 years, and I know this industry in and out. I have access to over 40 lenders, and I know how to go between them to find you the perfect rate for your personal situation. Best of all? Since I get paid directly by lenders, you get access to my wealth of experience at no personal cost.
My number – one last time – is 604.892.4647. If you’re still hungry for home- or mortgage-hunting tips, give me a call – I have plenty more where these came from!
Michele Ellis – Senior Mortgage Broker, The Mortgage Studio