You’ve secured an appointment with your Vancouver mortgage broker, which is a great first step towards buying your own home. A Vancouver mortgage broker can help you with buying a first or second home, and with renewing and refinancing your mortgage, obtaining for you some good deals in the process. But that first meeting may have you feeling a bit anxious. We have some tips to help ease that anxiety and to make sure you bring everything you need for your first meeting.
Be Sure to Bring the Right Documents
Having all of your necessary documentation in order will make your first meeting with your Vancouver mortgage broker go a lot simpler. You’ll need the basics, of course, such as valid photo ID, proof of your income and savings, financial obligations, and details of the property you are hoping to buy. For most people, this is fairly straightforward. But, if you are self-employed, you will need additional documentation, tax filings, and records of any third-party liabilities for your business. It’s always a good idea to call ahead and find out what will be needed so that you and your broker can properly prepare for the first meeting.
During your first meeting with your Vancouver mortgage broker, you will go over your finances in great detail. This is to help determine how much of a mortgage you can afford. It’s helpful to be aware of how much you can realistically afford, and that includes the costs of running the home, on top of the mortgage. Your broker will go over any additional fees, look for a good mortgage rate for you, and determine the terms of the mortgage that work best for you.
Pre-Approval and Borrowing
Getting pre-approved for a mortgage can be really helpful and is necessary in most cases before a real estate agent will work with you. One mistake that buyers make is to get a pre-approval and then go out and take another new line of credit or make a big purchase. Pre-approval does not guarantee acceptance, so you are not safe to take out more credit during the mortgage process. It could have a negative impact and cost you the pre-approval.
Always Ask Questions
The point of that first meeting with your Vancouver mortgage broker is to make sure everything is clear to you. So, if you have questions, be sure to ask. Things that some buyers tend to forget to ask about are fees and additional costs, how the process works, and what to avoid doing during this process (like new borrowing). Your mortgage broker will work to find the best mortgage package for you but be sure to ask about penalties for pre-payments and the different benefits of variable and fixed rates.
Once all of your paperwork has been completed and the necessary documents are in hand, you’ll go over the mortgage deals that are open to you. They will take care of submitting your mortgage package to (and negotiating with) the lender you have chosen to go with. Upon approval by the lender, your broker will assist you in finalizing the mortgage contract.
A good Vancouver mortgage broker will go over all of these details with a fine-tooth comb with you, but questions do come up. It is always a good idea to sit down and list the things you want to ask about beforehand.