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Tuesday, 10 April 2012

Mortgage Advisory! Number two: the right broker!

How to pick your Trusted Professional: Your Mortgage Broker!

The information that you are about to read will give you some insight into how the mortgage industry operates and help you avoid making decisions that are harmful to your own best interests. Before you even talk to a mortgage broker, you must have a clue if nothing else you can graduate your selected mortgage broker about the knowledge he or she possesses. It is important to pick a broker with experience and knowledge!
Before you get a nod, your lender wants to know certain thinks about you, like:

How much debt do you have? Too much you owe, you will not be able to keep up monthly obligations and it is the first red flag. We help to consolidate debts and even eliminate debts!
What is your credit rating? Your history on credit bureau report tell it all! Very important to have a high so called BEACON SCORE as many lenders are making decisions based on the score! 
What is your down payment or how much equity do you have in your home? Seriously important to see you ability to save and create equity and responsible spending!
What should your interest rate be? Your credit andyour history will determine the degree of risk, higher risk higher interest rate, it is only makes sense!
What is your home or the home you wish to purchase worth? DO not believe anybody, only professional Appraisers to determine the value of the property you are about to purchase. Realtors are not Appraisers keep in your mind!
What is your family income? Better your cash flow, lower is your interest will be as you are demonstrating your ability for repayment and therefore you are a lower risk, deserving better rate. There are many stipulations and a good mortgage broker can truly help you to present your employment track record to lenders make sense to them and look at your application with open mind when you self employed or just changed employment and or started a new venture.
What other debts do you have? TDS Total Debt Ratio is the amount of all monthly debt commitment including the proposed mortgage payment along with condo fees and or heating cost and can not be higher than about 40% of your total combined gross earning. Some lenders go higher, but charge higher interest as well.

Why are these things important to know? Because they will determine the best lender and the best program that will enable you to do what it is that you really want.

Don’t Assume that Your Bank is Necessarily Your Best Option!

Don't sign the Mortgage Renewal Statement before you consult a Mortgage Broker!

How to Choose the Best Mortgage Broker for Your Loan
This is where you must become the expert and where you must trust your instincts. Be prepared beforehand. Remember your list of objectives. Get your paperwork together. Now you are ready to actually speak with a broker.  
Someone who makes outlandish promises
A fast-talking person who pushes to set up an appointment
Someone who seems impatient or who does all the talking
Someone who seems evasive or avoids answering your questions directly
Someone who seems to make assumptions about you
Someone who offers no information that you find useful
Someone who doesn’t give you a distinct impression of professionalism
       You want:
 Someone who is courteous and friendly, yet businesslike
 Someone who takes the time to ask you about your objectives
 Someone who answers all your questions directly and completely
 Someone who seems sincerely interested in helping you meet those objectives
 Someone who asks hard questions and asks for supporting documentation
 Someone who demonstrates patience and does not seem in a hurry for you to make a decision but who is able to provide the information you need to make an informed decision
 In short, what you are looking for is a Trusted Professional. Who takes the time to determine your ultimate goals and use their expertise and experience to help you find the ultimate solutions to those goals. Their insights can provide you with answers that you had not previously considered, such as how to reduce your overall debt, and how to own your home sooner. They can help you decide whether a variable rate might be in your best interests, and whether or not some degree of debt consolidation might work in your favor.
Provide straight honest answers to get better representation!
Many of the questions your mortgage consultant will ask you may make you feel slightly uncomfortable because they involve private areas of your financial life. Questions about income, debts, and late payments may feel invasive, and you may feel put on the spot. You may even feel tempted to exaggerate your income or the value of your home, or to understate late payments or the number of debts you have.
Perhaps you have been turned down elsewhere, and you assume that omitting whatever detail kept you from getting the previous loan may help you slide through this time. However, we would like to caution you strongly. Never lie to your mortgage consultant. Don’t exaggerate, leave anything out, or minimize any negative aspects.
Why? Because everything you tell him or her will have to be documented and verified anyway. The truth will come out in the end, regardless, and you will merely have delayed the inevitable and wasted everyone’s time – including your own. It’s sort of like a smoker who is having chest pains telling his doctor he doesn’t smoke. Accept the reality of your situation, warts and all, and make it clear to the person attempting to get you a loan. Your mortgage consultant is essentially taking your application, making it into a nice, neat package and submitting it to the best lender for your situation based on the information that you’ve given them. This lender will still have to confirm all of the details provided so that they can confirm if your deal is best suited for them as a lender. Without accurate information, the mortgage consultant and the lender cannot do their jobs properly and the result is that you won’t get the loan. Give your mortgage consultant all of the information needed and then let them roll up their sleeves and go to work on getting your loan approved.
Some Financial Advice!
This is where your Trusted Professional can help. After all, for most of us, our home is our greatest financial asset. It is also a powerful financial resource that can be leveraged to help eliminate high-interest debt and free up large portions of you income to pay off your home sooner. Don’t forget to ask your mortgage professional for suggested scenarios that can help you achieve the ultimate objective – becoming totally free of debt.
Thank you for choosing us to be your Trusted Professionals!