I have always dealt with my bank for all my financing needs, why should I speak to you or use you?
You may have a great relationship with your banker, as do I but I do know that the bank is not your only option. The bank is only going to get you a mortgage with one lender – the bank! As your mortgage broker, I have access to over 30 different lenders with different mortgage products and solutions that are a fit for you. Not every mortgage is going to suit every applicant – as your mortgage professional I will negotiate the best rate on your behalf.
How much do you charge?
As a mortgage broker, I don’t charge you anything! I am paid by the lender, once I negotiate a mortgage on your behalf.
Are you licensed?
Yes, as a mortgage broker I have taken the required courses to become licensed and therefore have ethical and moral guidelines that I follow in every transaction that occurs. I will provide my qualifications upon request as I feel it is important to be opaque and open.
What costs are involved in obtaining a mortgage?
There are legal costs (usually about 1.5% of the purchase price)
Insurance on the property - most lenders will require you to have home insurance on your property
Default Insurance - if you are putting less than 20% down payment on the property, you will incur Default insurance (this amount varies depending on your down payment and your purchase price).
In some cases an appraisal is required and you will have to pay out of pocket for that - usually between $250 - $450, depending on the location of the property.
Other costs you should consider:
Mortgage Insurance - not through the lender but through a private insurance provider as you then become the beneficiary and not the lender. If you take mortgage insurance from the lender, you will pay the insurance premiums but they will benefit not you!
What kind of mortgages do you do?
I work with people who need a first, second or third mortgage, refinance, debt consolidation, equity take-out, investment property purchases as well as self-employed/stated income individuals (different criteria apply).
I also assist people who can not yet qualify for a mortgage through cooperation with various partners who offer a Residential Lease Program or Rent-to-Own Program. (See partners page for more information).
How much can I qualify for?
Each person’s situation is different. Qualifying guidelines vary depending on the lenders’ criteria and mortgage products available. They take into account your credit situation, you ability to pay the mortgage, your income and your employment status. To find out what you can get pre-approved for, please submit your application through our online system.
What is the difference between pre-approval and pre-qualified?
Your first step is to meet with your mortgage agent or mortgage broker and get pre-approved. Don’t confuse this with pre-qualified. This is a big mistake that buyers make and it is important to be very clear on the difference. Getting pre-qualified for a loan gives you an idea of how much you might qualify to borrow. You have not actually applied for a loan and the mortgage lender has only your word on your income, assets and liabilities. None of your information has been verified, the loan amount is in no way guaranteed. You may be given a pre-qualification letter that merely states you are likely to be approved for a mortgage. Getting a pre-qualification is generally very fast and you can even pre-qualify for a mortgage online in only a few minutes.
A pre-approval on the other hand is much more detailed – the lender verifies your income, assets and liabilities and in most cases your credit report has also been pulled and verified. Getting a pre-approval letter means that you are likely to be approved for a mortgage and also states the amount for which you may be approved. It carries much more weight than a pre-qualification letter. Furthermore, this rate can be held for 60 – 120 days while you shop for your home.
Notice that I said likely. Neither a pre-qualified or pre-approval letter guarantees anything these days so if you have been pre-approved for an amount – be conservative and shop for less than the amount – you are then sure to be approved for the home you want, rather than the home you are forced to get.
Furthermore, getting pre-approved, lets your realtor know how much you can truly afford so they are not sourcing homes that are out of your price range – especially important for first-time home buyers.
I am looking to purchase my first real estate investment, but don’t know where to begin – what should I do?
Your first step is to speak to a mortgage broker such as I, who is also a real estate investor. I have the experience and the knowledge to guide you through the process. For some this process can be easy and straightforward and for others it can be daunting. As a mortgage broker, I have surrounded myself with other investors, accountants, lawyers, insurance agents, realtors, etc – all the people that you need to be in your corner when shopping for your first investment property.
What if I have poor credit or I had a bankruptcy – can I still qualify?
Yes you can! You will most probably not qualify through conventional financing but perhaps through a B or alternative lender (A lenders are for people with good credit scores and B lenders charge higher rates and are more apt to look at applicants with less than stellar credit scores) or even through our extensive network of private funders. Many investors and consumers are finding their dreams of home ownership (either for themselves or for an investment) become a reality through private funding. While the interest rates are higher, you don’t have to lock in for a long period of time – therefore when your credit situation improves, you can then re-qualify for a conventional mortgage at lower rates.