Tag Archives: how to get ready for a mortgage

5 reasons (besides low interest rates) why Toronto and Vancouver real estate may only get hotter

Being a Vancouver boy at heart, I love the great reads that pop up around the web about the thriving real estate market there. Bidding wars, “knockdown” shacks being sold for 2.4 million…… It’s the stuff real estate enthusiasts love to sink their teeth into.  We love to know the ins and outs and the “why’s”.

Low mortgage rates, supply and demand, foreign investment all are playing leading roles in the fiery dramas that are unfolding in the Toronto and Vancouver housing markets. Everyone has their favorite lead actor/villain driving these two markets skyward, but there are more pieces to this house shaped puzzle….

Continue reading here, story via Buzzbuzzhomenews

Mortgage tip of the week: Have your team of experts assembled

Congrats, you have made the choice to jump head first into the housing market! Now get your team assembled…. Before you start looking at places speak to a mortgage broker and get a real estate team lined up. When it comes to buying a home, you usually have to make quick decisions – especially when you’re in a competitive market! In some cities, there’s a good chance you’ll have to make an offer on the same day you see a place, so there truly is no time to waste.

Start by getting pre-approved for a mortgage, so you know what your budget is and how much a bank will actually give you. Hire an experienced real estate agent who understands what you’re looking for and knows how to get it. Get the names of home inspectors and real estate lawyers in your area. And make sure your down payment is saved up and available to be withdrawn.

Happy hunting 🙂

All-in-one mortgage accounts & the benefit of putting your debt in one pot

The whole premise seems geared toward keeners.

All-in-one mortgage accounts – a kind of mortgage account that acts like a big line of credit – seem aimed at the kind of borrower who uses every trick available to pay off the mortgage quickly, the type who can play an online mortgage payoff calculator like piano keys.

Sounds like you?

Continue reading here…… Story via The Globe and Mail

As always never hesitate to give me a shout if you have any questions, I’m here to help 🙂

5 Ways To Boost Your Credit Score

I have spoken about credit a lot. It is one (but not the only) important piece of your mortgage puzzle. What can hurt you score, cant often times be more obvious than what can be done to help. Today I’m talking about the five things that you can do to improve your score, because the little number follows you whether you like it or not!

  1. Bring, and keep, your open accounts current. The most important part of your FICO score is a history of on-time payments. If an account becomes 30 days past due, you can lose a lot of points. It is much more important to bring and keep open accounts current than to handle old collection items of closed accounts.
  2. Reduce your credit card utilization. Utilization is defined as the percentage of your available credit that you are using. To calculate your utilization, divide your statement balances by your credit limits. If you have $10,000 of available credit and have a $1,000 balance, your utilization rate is 10%. According to data from Experian Decision Analytics, people with the best credit scores (above 780) have a utilization rate of 5.6%.

Continue reading…..

Story via Forbes

What to know about getting a U.S. mortgage

You have made the big decision as a Canadian, you have hung up your skates and your tired of battling the snow and frost all winter! You have dreamed of having a “home away from home” but too far away from home….

Although Canadians and Americans share the same continent, live across from one another on the world’s longest undefended border and speak, mainly, the same language, there is one undeniable geographical advantage that the United States possesses in abundance: year-round warm weather locales.

This has led many Canadians to think about buying a property in a U.S. hot spot.

There are many mortgage pros and cons on top of the exchange rate…. to learn the more continue reading here.

How a simple credit error can ruin your home-owning dream

Imagine the anxiety of watching your credit score unexpectedly plummet after spending your entire adult life maintaining good credit.

Now suppose this credit decline blocks you from getting a mortgage on the house you planned to buy.

That’s precisely what happened in this story, and it happens to mortgage applicants all across the country with surprisingly frequency.

All too often the culprit is unpaid phone bills. In this case, his cellphone provider sent the account to a collection agency after being just more than a month late on its cancellation fee. That caused his credit score to drop like a lead pickle, approximately 80 points (out of a theoretical 900) virtually overnight.

It never should have happened that way. Collections are meant for people who can’t or don’t want to pay their debts. But sometimes, for one reason or another, people honestly don’t know they’ve missed a payment. Reputable creditors make bona fide efforts to contact debtors for payment before taking this extreme measure. That didn’t happen here.

As a mortgage broker, I see this time and again. For most borrowers, it’s just a simple oversight. But as this case shows, an unnoticed cellphone charge can spell credit-score disaster. By the way, I learned the hard way that when you cancel your account, some phone providers stop automatically billing your credit card and e-mailing you outstanding charges. How thoughtful of them……

To continue reading & find out how to avoid credit drama just like this, click here (story via Globe & Mail)

How to get a mortgage (when your not the ideal borrower)

If you’re a credit-worthy employee at a Fortune 500 company and don’t have much debt, the mortgage world is your oyster. Banks knock on your door looking to give you the best rates, most advantageous terms and any other perks they can use to get your business. You’re an A-lister. A borrower with impeccable credentials.

But what if you don’t quite fit that pic? It doesn’t mean you’re out of luck, it just means you have to learn how to work the system in your favour.

Truth: You can get a mortgage if you’re self-employed, got a poor credit history, or if you own more than three rental properties……

To help you, here is a list of some of the most common B-class borrower hurdles and the best ways to minimize the risks and get better mortgage rates and terms.

Have a read & as always, if you have ANY questions, never hesitate to get in touch.

Banks don’t provide proper pre-qualifications. Mortgage brokers do!

Mortgage tip of the week & food for thought for those who are considering house hunting…

Before you run to the MLS listings, talk to a mortgage broker. First time home buyers should confirm their eligibility to purchase through a mortgage pre-approval in conjunction with their real estate agent. Mortgage brokers ensure FTHB’s are pre-approved prior to searching for property so a REAL budget is established and a pre-approval rate hold is tied down. If the client is already working with a realtor, that realtor can rest assured that the client is motivated, and looking in their appropriate price range. It saves all 3 parties involved a lot of time, and headache. A mortgage broker can be considered more valuable in this regard, as banks do not provide proper pre-qualifications based on a full application or review of documents, simply put, it leaves room for error.

If you have any questions NEVER hesitate to get in touch & stay tuned for more tips :

How to get a mortgage with bad credit

Truth: Your credit rating is not the only piece of the mortgage puzzle but you need to know where you stand.

I have been in the mortgage business for a long time and still, the most common question that I get asked is plain and simple……

“How do I actually get a mortgage with bad credit?”

I get asked this a lot and my very BEST ADVICE is NOT TO MAKE ASSUMPTIONS.  Many people think they have poor credit from something that happened years ago and are pleasantly surprised to find out the item in question is no longer pulling their credit down.  Conversely, many people think they have good credit only to find out that parking ticket or phone bill they didn’t agree with nor pay, is costing them dearly on their credit report!

Here’s what to do:

  •  let me check your report out so you know exactly where you stand. (Free)
  •  If you do have some serious problems, let me give you some tips on how to improve your situation, if not for now, for a future application (Still free)
  • You would be surprised how many mistakes I find on credit reports; things that have been paid off long ago but aren’t logged on the credit report – Again never make assumptions….

If your curious to know your score, give me a shout if there are improvements to be made, you would much rather tackle those now than have a nasty surprise later 🙂