Discover How to Get a Mortgage

If you need to know how to get a mortgage then the first place you must go is to a mortgage professional. Your local bank will happily offer you a mortgage, however the representative in your local bank branch is not likely to have expert knowledge of mortgages and mortgage financing. Your best bet is to work with a mortgage broker who will help you to get the best mortgage.

Your best mortgage broker is experienced, knowledgable and independent. He works with a number of different lenders (banks) and will help you to get a mortgage by following these 5 steps:

1. Your best mortgage broker will try to understand your needs.

He will ask you a series of questions to determine why you need a mortgage. He needs to understand your plans for the future.

  • Are you a first time home buyer planning to stay in your first home for about 3 years or more or less?
  • Are you purchasing an investment property, a second residence or vacation home?
  • Are you selling your home and purchasing a new home?
  • Are you purchasing a home for your child to live in while she attends University?
  • Do you plan to sell in a certain time frame?
  • Do you plan to pay off the home faster than usual?
  • etc., etc.

2. Your mortgage broker will then review your personal information.

A review of your personal information will include your full name, birthday and social insurance number. He will ask for your current address and a history of your previous addresses for the last 3 years. You will need to provide information about your current income and employment and a 3 year employment history. Your mortgage broker will also ask for a summary of your assets and liabilities.

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3. Review your Credit.

There are 2 credit reporting agencies in Canada that provide lenders with your credit history. These agencies, with your permission, will provide your broker with a summary of all loans, credit cards, mortgages that you have or had. They also provide a summary of your address history & employment history. These agencies also generate a beacon score that many lenders use to determine your credit worthiness.

4. Submit your application for mortgage approval.

Armed with the information from the previous steps, your mortgage broker will contact a lender and submit your application for mortgage approval. The decision by a lender will generally take 1 to 2 days.

5. Review the mortgage approval decision with you.

Once the lender has provided a mortgage approval to your mortgage broker, then he will contact you to review the conditions. These conditions will depend on your specific situation, but in general the lender will ask for documentation that confirms the details of your application like:

  • confirmation of your income via paystubs or employment letter or both
  • confirmation of your down payment, if you are purchasing a home
  • confirmation of investments or assets that you have
  • copy of the purchase agreement (if you are purchasing a home)
  • etc., etc.

The process for you to get a mortgage is a simple one and starts with finding a professional, your best mortgage broker. He will get to know you, what you need and determine which bank will best fit with your needs. He will help you understand how to get a mortgage and find the best mortgage for you.

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