As a Mortgage Professional, we are fortunate enough to be included in one of the most pivotal purchasers for most Canadians. I have seen the process from beginning to the end and have witnessed how the fear and excitement plays a role within the purchasing process. There are commonalities with first time home buyers that are not always addressed for clients as the proceed through the application and closing.
To aid in the the expectations, I have compiled a list of points that I think every first time home buyer should consider:
Find a Mortgage Professional that has a proven track record of success:
Many Mortgage Professionals have established careers upon awards that have little merit or thin qualifications to be nominated or be declared a winner. This has created a disturbing amount of agents and brokers who truly do not have the understanding of the industry or how to truly ensure that clients are obtaining the best mortgage product and experience possible. Ensure that they have active social media accounts and a secure, dependable website. Allow the professional to initiate through being intentional about how they share their brand and expertise. With the largest purchase of your life, you want to ensure that the person you select as your agent is knowledgeable, connected to the appropriate lenders, with positive reviews that can be cross referenced. Arrange an initial consultation and listen carefully. It is exciting to look at houses, obtaining a mortgage is not to be described an entertainment of any sort. You will be providing all of your personal information, so get to know this person before committing to anything. Protect yourself with this regard.
You Will Be Excited and Terrified At The Same Time:
You are borrowing money in the multiples of $100,000s. This commitment requires serious consideration and sound advice as you navigate this transaction. Ensure that the mortgage provider is comfortable with the client management aspect of carrying you through the process and ensures that you are properly informed. The most aggravating feeling is an agent who you perceive as neglecting you while you are purchasing your home. Your Mortgage Professional should be sensitive to your emails and calls within reason. Ensure that they follow up and call you back in a timely fashion. The little things truly go a long way with this process and we anticipate your discomfort. Ensure that the your professional is understanding to your feelings and will keep you informed with each stage and assists you with the processing of the information. Your questions should be encouraged and welcomed.
The Internet Does Not A Mortgage Professional Make:
The internet provided clients with information that is helpful and has allowed many clients to approach their Mortgage Professionals far better prepared for the experience. That is exciting to many of us because we like clients who take this purchase seriously. They tend to have better application factors. I encourage every client to find online resources and present your findings to your Mortgage Professional. However, please be mindful in how you express this information, because consistently obtaining financing solutions that makes sense to clients from a wide range of backgrounds is a legitimate skill that is only honed through years of commitment to studying our craft. Simplifying the process to your professional can be perceived as rude and counterproductive as their goal is the same as yours. This problem is most common with clients with ideal credit ratings. A good or excellent credit score is always something to proud of and has benefits that cannot be disputed (For example, better interest rates and the ability to borrow more money for your purchase.). But keep in mind, as much as a strong credit score speaks volumes to who you are as a client, it does not make you an expert in any capacity. Respect maintains an equal playing field and if there is a better rate than what we have offered you, we would give it to you because we cannot begin the application process for you and watch you leave to one of our competitors. Keep in mind this how we earn our livelihood and offering products that are not solution based will not result in a situation that is beneficial to any parties involved.
Please Provide Your Documentation on Time and In the Correct Format:
One problem that we face as agents the inaccuracy of documentation. We also face strong challenges clients who cannot get their documentation into us within a timely manner. When it comes to your home purchase, dates are critical and need to be adhered to. Missing important dates can cause delays with closing your mortgage and can even disrupt the final mortgage product you end up with. I have seen many clients pay to lengthen closing dates due to simply not providing your mortgage professional with the details they require to accurately assess your application. Often times, the delayed information can cause hiccups and even change the terms of your mortgage. The lender is to be pleased simply because they hold the purse strings. Be mindful in sending your documentation in on time and doing so properly the first time.
Lastly, it is important to ensure that file types are exactly what your Mortgage Professional requests of you. For example, sending bank statements in a picture format is usually unreadable and delays things even further. When you work with us, our role is to ensure your transaction is smooth and maintain low stress levels. Countering our process and advice could be to your demise. Avoiding this should matter to your Mortgage Professional and they should play a pivotal role in keeping things moving forward in an orderly fashion.
Be Honest With Every Stage of the Process:
I have met many clients who approach providing application details as if they can be negotiated. This is one of the largest misconceptions and time wasters of your application process. There are certain details that will most likely come out that can hurt your deal if they are not addressed upfront. A Mortgage Professional is trained to prevent this.
As Mortgage Professionals, our role is built upon the relationships we establish with our lenders in exchange for better rates and terms for our clientele. We do this by ensuring that they can trust the stories and the files that we provide to them. Blindsiding your agent with information in hopes of controlling the deal will never work in your favour as the client. Our job is to simply present your current situation in the best light possible. Any new information being presented after the selling process could be perceived as withholding information, which could kill our credibility and shows lenders that we do not know our client; which is technically illegal. Your Mortgage Professional will not take lightly by being perceived in this light by the lenders we have worked hard to establish strong relationships with.
Lean upon our relationships to obtain the best product for yourself. We are just as motivated as you and full disclosure is the only approach will work in your favour. Tell us the complete story the first time to avoid issues that you will not want to face should the comfort level of the lender change once we adjust the deal. If you are not comfortable providing your existing agent with the complete details, it might be best suited to find another agent with whom you are prepared to be completely honest. At least you can walk away on good terms.
Continue The Conversation As Your Evolve With Your Product:
If you ever have any questions regarding the market or your existing mortgage product, maintaining a positive relationship with your Mortgage Professional will ensure that you will have someone you can speak with to continue who can guide you moving forward. Life changes and you will want a knowledgeable professional who prepared to protect you in any way they can. If they reach out you, respond. We genuinely want to talk and ensure that you are doing well.
Referrals are Important and Valued:
As Mortgage Professionals, we strive to offer quality service that we hope you will rave about to your friends and family. Word of mouth comes with a level of trust that no other method can compromise.
When you take the time to share your experience with others, it motivates us to continue working hard to provide sound solutions to Canadians and allows Canadian small business owners the opportunity to take care of families.