Characteristics of a Great Mortgage Broker

Mortgages Gert Martens 21 Dec

When it comes time to buy a home and apply for a mortgage, you want to get the best mortgage package for your situation. The best way to do this is by using a broker, like our Grande Prairie mortgage broker team. Shopping around for the right broker is also important, and there are some characteristics that you should look for if you want to find a great mortgage broker.

They Should Put Your Best Interests First

When you use a lender, they often push for a mortgage package that is beneficial to them, rather than to the client. A mortgage broker, on the other hand, is less biased and works to find the best package for you. A great broker needs to have the experience and knowledge needed to find options that fit your financial situation.

Unfortunately, there are some brokers who are not as unbiased and will put their needs before those of their clients. For example, they may offer or push for a mortgage package that isn’t very suitable for you because they get paid a large commission on it. This could cost you more money over time.

Honesty and Transparency

Another important characteristic of a good broker is transparency and honesty regarding everything they are doing. A good mortgage broker won’t promise you more than they are able to deliver because they are that desperate to close a deal. This is a big red flag that they may be hiding fees or making changes to the mortgage package and not telling you. A great mortgage broker will go over everything with you to be sure you understand what you are getting and will tell you about any fees. They will also not be afraid to tell you what they aren’t able to do for you and will be honest and realistic about loan qualifications.

They Should Pay Attention To Details

Details are crucial when it comes to applying for a mortgage, and it’s a very complex process. A great broker needs to be sharp when it comes to those details, both big and small. They will make sure that your paperwork is filed in a timely manner and pay attention to timeframes. After all, one missed major detail can jeopardize the whole mortgage process. They will also make sure that you understand those details as well, and will keep you updated about any changes.

They Are Upfront With Fees

Some brokers are given compensation for using a specific lender. However, some private lenders will charge the homebuyer. A great mortgage broker will let you know of any upfront costs straight away so that you can decide if you want to go with that lender or not. If your broker seems to get nervous when you ask them about fees, it’s a red flag that they may not be telling you everything.

When you apply for a mortgage, your financial situation and finances are being accessed. These are personal and delicate areas of your life that you won’t want just anyone to have access to. This is why it’s so important to shop around for a good and reliable mortgage broker who will safeguard your information and who will work with your best interest in mind.

If you have questions about mortgage rates and are looking for a great mortgage broker, give our Grande Prairie mortgage broker team a call today!

Purchase Plus Improvements Mortgage Program

Mortgages Gert Martens 10 Dec

Mortgage Expertise with Gert Martens

Hi there! Gert Martens with the Gert Martens Mortgage Team. I’m here to talk to you today about purchase plus improvements.

What this program allows you to do is include the cost of renovations in your new mortgage. There are a couple of simple steps to follow with this type of mortgage.

First, you will need to get quotes for all of the work that will be included. You can provide quotes for the materials you will need for any work that you plan to do yourself, but please keep in mind, you will need to have savings or a line of credit to purchase the materials.

Lenders are looking for items that increase the value of the home and cannot be removed from the property. Appliances and/or luxury items (such as new hot tubs) would not be accepted by the lender as part of the purchase plus improvements program. They are looking for improvements that increase the value of the property. Examples of what they are looking for would include:

A new kitchen
New flooring
A new furnace
New roofing
New windows

These are all items that increase the value of the home and cannot be removed.

Once all of the quotes are provided, we will be able to submit your mortgage for approval. We do submit the total value of the quoted amount plus your purchase price. The downpayment is always based on the total amount.

Once you take possession of the home, you can begin the renovations. The funds for the renovation project will be held in trust with your lawyer. Make sure you know your lender’s time limits on the renovations. Generally, lenders allow up to 120 days to complete your project.

Once the renovation is 100% complete, you need to contact your mortgage broker and they will order an inspection to confirm all of the work has been completed. Some lenders do require proof of work completed via invoices from the contractor or receipts for your materials so please make sure you keep those documents handy in order to ensure those funds can be released to you.

Once your lender has confirmed the work has been completed, the layer will be able to release the funds for the renovation project. The most important thing to remember is that a lender will only allow the release of the funds once the work is 100% complete.

If you have any questions about obtaining a purchase plus improvements mortgage, don’t hesitate to give me a call today! I’m always happy to help!

Thank you for watching and I hope to hear from you soon!