First time home buyers & Mortgage Pre- approval
Buying your first house is a special time in your life. You will never forget it!
The majority of Laurie’s clients are first time buyers. It's no surprise why- Laurie is a mortgage expert and your ‘One Stop Shop’.
She will get you pre-approved stat.
Why get pre-approved?
- You'll save time house-hunting, seeing only homes you can afford.
- You’ll have a better idea of your monthly payment amounts, as well as how much your down payment will be.
- Real estate agents may serve you better because they know you're serious and ready to buy.
- When you make an offer to purchase, the seller may be more likely to give it serious consideration because you have solid financial backing.
- Your pre-approved status may give you more negotiating power with a seller.
- Some lenders may give you a rate lock so you don’t have to worry about rising interest rates while you look for a new home.
- There's no cost to you and you're not obligated to accept the mortgage.
How the mortgage pre-approval process works with Laurie:
After a brief telephone or email conversation to determine if you are ready to start the pre-approval process you will meet Laurie in person to go over the home buying process from A to Z. Laurie has been told many times (by first time buyers) that the bank they met with never went into as much detail or explained the process as thoroughly. This is why most first time buyers nowadays call a mortgage broker instead of their bank. Buying a home can be very stressful and working with Laurie can reduce the stress so the process is enjoyable instead.
Here is a breakdown of what your first 1 hour meeting will be like:
- You will discuss which professional (realtor, mortgage broker, appraiser, home inspector, lawyer) does what job for you and at what stage of the home buying process. Laurie always jokes that it is easier to get married than buy a home. But don’t worry, you are in good hands, Laurie will walk you through it.
- You'll learn about the various mortgage options and products available to you. You will go over fixed vs. variable interest rates and the pros and cons of both, interest terms, payment options, amortization lengths, etc.). Together with Laurie’s guidance you will determine which type of mortgage is best for you.
- With your consent, Laurie will take your application, which will require you to provide details on such items as employment, income, assets, down payment (if applicable) and liabilities.
- With your permission Laurie will then review your credit bureau report with you. She will analyze it with you line by line and give you tips and tricks for improving your score. There are many do’s and don’ts that the average person does not know. This is where Laurie’s vast experience really separates her from the crowd.
- Laurie will advise you about the documentation (income confirmation, down payment confirmation, etc.) you'll need to supply upon conditional approval of your mortgage. These conditions must be met for your mortgage to be fully approved.
- Most important of all- all your questions will be answered fully so you can relax and enjoy the next step.
Before you are able to write an Offer to Purchase on a property that is up for sale you should be pre-approved. This means that you have been conditionally approved for a mortgage. If you are working with a realtor, they will ask for your pre-approval letter before they write up the Offer to Purchase.
You’ll need to provide me information about the home you’re purchasing (house vs. condo and what price range) along with your personal information including assets and liabilities, income and down payment details.
Some of the documents you may need to provide include:
- Current employment income from a T4, pay slips or signed letter from your employer called a letter of employment.
- If you are on contract, work part time, get commission or are self-employed, your last two year’s T1 generals and Notice of Assessments will be required to average your income.
Down payment information:
- If you are using your own funds, savings or investment statements from the last 90 days will be required and any large deposits require an explanation.
- First time buyers can withdraw up to $25,000 from their RRSPs. Proof of the amount in your RRSP via statement for the last 90 days will be required.
- If you are using a gift from a family member: a gift letter stating the money is not a loan and proof that it has been deposited to your bank account.