June 24, 2024


Mad about real estate

What Your Mortgage Broker Needs from You

Get Your Questions and Documents Ready Before You Meet with Your Mortgage Broker

Mortgage broker or bank mortgage representative? You still need to prepare before you visit a mortgage professional in order for your agent to help get the best mortgage. For sure you’ll want to check out all your options and you may find that a reputable mortgage broker gives you the most flexibility in the market when shopping for a new mortgage. A mortgage broker can help if you are:

– ready to look for a new home and you want your financing in place first
– a current mortgagee whose term is expiring
– wanting to pay down other debt by accessing equity from your home
– thinking about switching your conventional mortgage to a home equity line of credit
– buying a house
– wanting to finance the purchase of a business
– in the market for the first time to buy a house

To do the job right there is some basic information that a broker will need to know about your circumstances. Take the time to gather together the basic information necessary to get a qualified opinion of the right mortgage for you.

It doesn’t matter if you plan to visit a mortgage broker in Mississauga, Toronto, Oakville – or any city for that matter – you should have a plan that includes questions that you want answers to concerning the process, fees and time-lines and the in’s and outs of the approval process. Your mortgage broker will expect you to bring standard documents that will prove that you have income and acceptable debt ratios. Bring along a pay stub, completed tax returns, and any other documents that relate to your assets and liabilities.

It may seem like a lot to have ready for a first meeting but if you are serious about gaining a mortgage you’ll need these things on hand at some point during the mortgage application process. Don’t even think about fudging numbers or trying to sweep things under the carpet hoping to trick a lender. Be truthful and aboveboard if your information and your mortgage broker will know how to proceed. Remember, that their goal is to get you a mortgage – they want to help. As you can imagine, there is certain information concerning your circumstances that is critical to the mortgage financing process.

It’s a little bit like the old Dragnet television show, your mortgage broker wants information but they just want the facts. The facts about your current financial circumstances will help your mortgage broker solve the puzzle of getting a great mortgage. Getting all your financial facts in order for the meeting should lead to getting your mortgage the best possible rate based on current market conditions. Being matched to the right lender and the right mortgage product will ensure that you qualify for financing and in the process, save you thousands of dollars over the term of your mortgage.

In fact, depending on what type of financing you’re after, you may also need several other so-called “team members” to complete the mortgage approval process. The real estate buying team includes a selling agent/broker, an attorney, an insurance agent and even a home inspection company. Your mortgage broker will coordinate with these other team members as necessary.

The main role of a mortgage broker in Mississauga – or in any other region – is to help find you the lending institution that is the most competitive and suitable for your individual situation. Mortgage brokers pried themselves on their independence and in their ability to survey the whole market when it comes to getting a great mortgage deal. It’s more likely that they actually place the majority of their mortgage business in the hands of a few select lenders. By concentrating the majority of their mortgage business with a few lenders, a mortgage broker can gain a degree of leverage when looking for hot rates or an approval on a borderline application.

If you circumstances make you the poster child for a great credit risk then your mortgage broker should bring back to you and offer that is below a lenders posted or publicly advertised best rate. Similarly, if you are self-employed, have poor credit, are a first-time home buyer or have other circumstances that are less than standard, then your mortgage broker will also understand the best approach and options towards getting you a mortgage approval.

It’s worth checking your mortgage brokers website because you may just find a checklist of what’s advisable to bring along during your first meeting. If not, phone and ask before you make the trip. You’ll probably need for instance; ID validation such as a drivers license, income and employment verification, a verifiable statement of assets and bank accounts, a verifiable list of other income sources, a list of any liabilities and debt obligations including credit card statements, lines of credit and so on.

Typically you’ll need:
— income verification, such as a signed letter of employment or pay-stub
— a balance sheet listing your assets and liabilities
— identification verification such as a drivers presence
— a list of projected or actual utilities and property tax payments
— a complete list of your credit cards, lines of credit, student loans etc
— verification of any other income streams which are currently being paid
— a listing of contact information and the names of your other mortgage team members

Prepare well and you may just get lucky. Lucky to get a mortgage rate that is better than you expected or lucky to get a mortgage that you never thought you would qualify for in the first place. After all “luck is what happens when preparation meets opportunity”.

So prepare for that meeting with your mortgage broker and all the best to you getting a new mortgage.