Choosing the Right Team
Selecting the right team to help you obtain mortgage financing will drastically improve the chances of a smooth transaction, and continued support after the sale.
When you work with a good mortgage broker, he or she can recommend more worthy professionals to add to your roster. Referrals are a great way to save time on 'vetting' out Realtors, Home Inspectors, Lawyers, and even Lenders for your new home.
Your Mortgage Broker
Arranging financing, and understanding how much you can afford, is the first step in the home buying process. Therefore, selecting your mortgage broker is the first choice you should make when assembling your team.
Find a broker who is trustworthy. You must be confident that they are right for you (or your family) and then complete the mortgage qualification process. If your approval does not go as planned, there will be no point in hiring more team members.
Typically, there should be no cost to use a mortgage broker. Our services are free, and we are paid a commission by the lender. With the wide array of lenders that TMG The Mortgage Group works with, getting a great rate will be easy. It's the additional mortgage strategies, advice, and management that truly differentiates a superior broker.
Here's what makes Rate City different from other mortgage companies and banks: We provide after sale support and management.
The majority of banks and mortgage brokers are transaction based. Meaning, after your mortgage has funded and you've taken possession of your new home, you won't hear from them again. This can be costly for you. Each customer we work with gets a free Annual Mortgage Review. This ensures that we can help you save money and meet your long-term financial goals.
During the Annual Review we will help you:
- Reduce interest rates on existing liabilities like: car loans, credit cards, lines of credit, student loans, and investment loans.
- Monitor your credit score and offer suggestions on how to improve.
- Set financial goals by showing you how to grow your real estate portfolio effectively.
- Look for ways to help you increase income tax deductions
- Ensure you have the best mortgage rate available
As you probably know, there are a massive amount of realtors out there. Do your research and make sure the realtor you choose will work within your expectations. Again, your broker can most likely recommend someone they have done business with and trust.
Meet with the realtor before making a decision. Essentially they are interviewing to earn your business. He or she should know how to ask the right questions, and provide valuable insight.
When working with your realtor, and choosing to buy your home, don't just think about your needs today! Think about what you may need in the future. For example, if you plan on having kids, schools, parks, crosswalks, and safety are all very important. Your realtor must provide options that balance your present & future needs.
Your Financial Advisor and Insurance Agent
Many times this step is skipped. Most don't consult with a financial advisor or insurance agent.
When creating a monthly budget, don't forget to add the cost of critical illness, disability and life insurance. Please do not rely on life insurance through your work. What happens if you leave the company? If your budget is too tight for this expense, then you are over-leveraging yourself and should purchase a less expensive property. Be aware that accidents happen. Protect yourself and your family.
Also note: your Mortgage Lender will try to sell you on their lender insurance package. Don't accept it. The chances that you will end up staying with the same lender for the entire length of your mortgage is slim. If you switch lenders when you renew your mortgage, you will have to obtain new insurance, and most likely at a higher rate.
If you have to apply for a new policy, and go through the entire process again, there could be problems with your application and you could be denied insurance coverage.
Your Home Inspector
Many times the home inspection is overlooked. However, we feel that the home inspector is one of the most important members of your team.
Your home inspector will complete a thorough analysis of the property your buying, and alert you to any potential problems. Your home inspector could save you thousands of dollars in repairs and renovations. Don't cheap out! Hirer someone who comes recommended by other industry professionals.
Also, don't use the home inspector of the seller, even if the home is a brand new build. You want a professional who is on your team and has your best interests at heart.
A good inspector will take a detailed walkthrough of the entire home. They will look at everything from the basement to the attic. They will then show you any of the problems they found. This will make sure you get a chance to speak with the sellers, and having the issues addressed before possession.
Your Lawyer or Notary
Your Lawyer or Notary will be the person who signs off on the Mortgage documents. If you are unsure of who to use, ask your friends, real estate agent, family, or broker, they most likely will have someone that they highly recommend.
Don't opt for a notary because you think it will be cheaper. There's a false assumption that lawyers charge more. This is not the case. Notary's can end up being just as expensive.
Before you make a decision on your lawyer or notary, make sure that the lawyer is approved. Ask your mortgage broker to check with the lender for you.
What you should do now
If you would like me to negotiate the lowest rate for your mortgage, apply for a quick approval.
If you are serious about learning everything involved when buying a home, go to my "Homebuyer Zone " page where you can read and download valuable checklists and resources.
If you have questions, contact me for more information.