19 Dec

Mortgage Broker – Mortgage FAQ

Mortgage Tips

Posted by: Gert Martens

Having been an expert in the mortgage industry for some time, I find that I am asked quite a few of the same questions by nearly every client.

These frequently asked questions will vary slightly from client to client, but the general questions are still the same:

  •       Which mortgage product or loan is best for me?
  •       Should I go with a fixed or adjustable rate mortgage?
  •     Should I secure an open or closed mortgage?

While these are not the only mortgage related questions I get asked, they are asked more than most, which is why I have chosen to include them in this post and explain them a little bit below.

Asking the first question about mortgage products will not get you a very productive answer if you ask it too early in the process. The answer to this question will vary based the borrower – the smallest difference in circumstances can lead to big differences in loan options.

Before asking what mortgage loan is best for you, take some time to get to know your mortgage broker. Explain your situation and let them know your goals so they have a better grasp on your current finances and where you want to be in the future. Make sure to provide as much information as you can, because the more information you provide, the more specific your broker can get with her advice and with the options for your mortgage loan.

The answer to the second questions is quite similar to the first. Both fixed and adjustable rates can be great options depending on your particular situation. There are some reasons why a fixed rate mortgage may be better – think rising interest rates and long-term payment schedules – and there are some reasons why an adjustable rate mortgage may be better – think predictions of lower rates in the near future or plans to quickly re-sell your home.

The basic difference between an open mortgage and a closed mortgage is that with an open mortgage, the borrower may borrower more money from the lender at a later date. Of course, certain borrowing criteria must be met before the lender will agree to lend additional funds, but this can be a great option if you are hoping to be able to make upgrades to your home or finance another large purchase in the future. A closed mortgage, on the other hand, imposes restrictions on the borrower, often requiring some sort of fee for pre-payments or refinances, but can reward borrowers with a lower interest rate.

You may also be wondering about the term of your mortgage or about how your payments will work. If so, don’t hesitate to ask! Regardless of how many times I may have heard a question, I am always happy to answer it again, especially if it means helping my clients feel more confident about their mortgage process.

 

 

Source: http://www.investopedia.com/

 

7 Aug

Grande Prairie Mortgage – How Does a Broker Help You?

Mortgage Tips

Posted by: Gert Martens

As a Grande Prairie Mortgage broker, I am proud to offer my expertise and knowledge of the mortgage industry, while providing home financing solutions that are tailored to each of my client’s specific financial needs.

If you have never purchased a home before, or have only worked with a large financial institution for your previous home purchases, you may not be familiar with the benefits of having a mortgage broker in your corner.

Choosing to work with a mortgage broker, means you are choosing to have someone on your side who is working for you and no one else. I am different from a faceless financial institution because I pride myself on getting to know each and every client I work with. I enjoy building lasting relationships with my clients and I truly want the best for them.

My connections, through my business dealings in the past as well as the backing of Dominion Lending Centres, I am able to offer my clients the best mortgage products and services at the most competitive rates. As I mentioned before, I do all of the work for you!

I will shop your mortgage around until I find you the best rate.

I will negotiate rates and terms on your behalf.

I will get you approved for the mortgage that fits best with your financial needs.

Working with a mortgage broker can save you more than just money. On your own, all of this would take hours, if not days, of visiting different lenders and financial institutions and applying for different loans. I can save you time by handling all of the intimidating details for you.

If you are looking for a mortgage, choose a mortgage broker.

As a Grande Prairie mortgage broker, I am committed to helping you achieve your dream of affordable home ownership.

Give me a call today at (780) 933 – 0109 for more information or to set up your free mortgage consultation!

 

 

Source: https://www.nerdwallet.com/blog/mortgages/5-facts-to-know-about-working-with-mortgage-broker/

17 May

5 Signs You’re Ready To Stop Renting

Mortgage Tips

Posted by: Gert Martens

So you’ve gone through four different apartments in five years. You’re sick of moving, you’re sick of paying rent, and you’re sick of having landlords who can’t even be bothered to fix a leaky faucet until your lease is almost up. You’re making good money with a great job, and you’re thinking about settling down. The thought of taking out a mortgage and buying a home of your own has been sitting in the forefront of your mind for a while.

But how do you know when it’s time to buy your first home? True, the Canadian mortgage industry is going through some significant changes this year that effects all home owners (one of which involves a mortgage stress test for those putting less than a 20% down payment), making the fiscal responsibility of first time buyers much more important.

While you may not be able to buy that dream home you’ve been looking for as a first time buyer you don’t need to be intimated by the latest changes if you have everything in order.

But that can be hard to figure out. Whether you choose to hire a Mortgage Professional or not, it’s time to get out of your tiny rental apartment and into your first home, we’ve compiled a list of the 5 signs that indicate that you’re ready to stop renting – and to buy your first home.

You’ve Got Your Finances In Order (Seriously!)

Don’t ever lie to yourself about your financial standing if you’re looking to buy a house. That’s a one-way-street to ForeclosureVille – and nobody wants to go there.

If you’re thinking about buying a house, you have to be brutally honest about your financial situation. How much credit card debt do you have? Do you have outstanding student loans? Auto loans? Personal loans?

If you do have debt, that’s not necessarily a bad thing – but do you have enough money to keep making payments and tackle a mortgage and related expenses at the same time?

If you have more than a small amount of credit card debt, the answer to this question is probably “no”. Credit card debt is a sign that you’ve been stretching your finances to the limit already – and it’s going to be better in the long run if you focus on paying off your personal debts before taking out a long-term mortgage.

Your credit score should also be a consideration – the better your credit the easier it will be to obtain a loan from your lender but every lender will have different requirements.   If you’re credit score is low or non-existent it could be worth saving for a few more years in order to raise your score and secure a better long-term rate on your mortgage.

You’ve Saved Enough Cash To Put Down A Beefy Down Payment

Down payments are a huge part of real estate. We won’t go into the math here, but putting down a large, 20% down payment can save you literally tens of thousands of dollars when buying a house, as compared to a 10% or lower down payment.

The recent changes to the Canadian mortgage industry now include a “stress test” for any buyer putting down less then 20% of the home up front. This is to determine if the borrower can afford to pay back the loan against a five year fixed 4.64% loan.

Despite the changes buyer still need to consider additional costs such as mortgage insurance, closing costs, taxes, repairs, furnishings and more when purchasing a new home.

Can you really handle all that if you can’t handle a large down payment? If the answer is “No”, you’re probably not ready to stop renting just yet.

You Can Afford Your Monthly Mortgage Payments – And Unexpected Expenses

Being a homeowner is expensive. Like, really expensive. It may seem like your mortgage payment is comparable to the rent you’re paying now, but you’re not factoring in:

  • Property tax
  • Homeowner’s Association Fees, if applicable
  • Home insurance
  • Potential home repairs and maintenance
  • Water, sewer, garbage, electric bills, or whatever other utilities may be covered by your current landlord

Altogether, these fees can often double your mortgage plus the principal you pay every month. If you put down a small down payment on a home that’s much bigger than you can afford, you may find yourself struggling to keep your head above water.

As a rule, your monthly payment should be no higher than 25% of your monthly take-home pay, including insurance and taxes. If you can’t afford that, you’re not ready to buy the home that you’re considering.

You’re Ready To Settle Down – For Real

Are you in a job that you’re going to keep for years? Decades, even? Do you have a plan for the next 5 years? Are you done moving between provinces and cities?

If the answers to these questions are “yes”, you may be ready to settle down and purchase a home. Buying a home is a long-term investment – so if you sell your home within a few years, chances are you won’t even cover your closing costs.

When you buy a house, you’re making a commitment to settle down. It doesn’t have to be forever – but it should be more than a couple years. So take some time, and truly consider whether you’re really ready to make the commitment of time, money, and resources required to settle down and purchase a home.

You Can Fix Things – Or Pay Someone Who Can

Here’s the thing about owning a home. Things go wrong – a lot. Furnaces break. Air conditioners conk out in the middle of summer. Chimneys mold, rot, or break. Pipes leak, air ducts snap, wood rots, toilets need to be replaced, appliances fail. And there’s no landlord or service hotline to call when these things happen – as a homeowner, you’ll be responsible for your own home.

If you’re handy, you can save a lot of money by doing basic repairs and maintenance yourself. But many of us are not – we wouldn’t know the difference between PVC pipes and HDPE pipes even if you slapped us upside the head with one – so you have to factor repair and maintenance costs of your home into your budget.

The joy of fixing broken things is a huge part of home ownership. You’ll never expect these issues – but you should always be prepared for them. If you can’t afford to pay for repairs and maintenance work on top of your mortgage, fees, principal, and other debt, you may not be ready to buy a home.

Don’t Let Us Scare You! If You’re Ready, Now Is A Great Time To Buy!

We’re not trying to scare you off from taking a mortgage out – far from it! The Canadian real estate market is strong, and still bouncing back from the 2007-08 financial crisis, so now is a great time to get a great rate on a fantastic new home.

We’re simply asking you to think about your situation. Buying a new home and taking out a mortgage isn’t a step that should be taken lightly – it’s likely to be the single biggest investment that most of us ever make in our lives!

So take the time to work through this article, and be honest with yourself. Do you have your finances in order? Have you got enough for a big down payment? Are you ready for unexpected expenses? Are you going to (finally!) settle down in one place? And can you handle upkeep, repairs, and other unexpected home ownership costs?

If your answers to these questions is “yes”, congratulations! You’re ready. And if you answer “no” to any of these questions, you may want to hold off for a year or two, and then re-evaluate your situation.