Will Peach

When considering to buy a new home, the thought process can be both exciting and terrifying as you put all of your hard-earned money towards a down payment on a single tangible asset, and prepare for one of the largest financial decisions you will make in your lifetime.

The best advice we can offer you when applying for a mortgage in Mississauga is to be prepared! This means understanding all your finances including income, expenses, debt, and credit history and score. When you come prepared to a mortgage lender or broker, you are more likely to explain your wants and needs, and the process will be expedited because they will not have to decipher your financial understanding of the information presented.

The mortgage broker or lender in Mississauga will be able to simply verify your information and look at it from a lending standpoint. They will be able to determine the amount of money you can handle as a monthly payment, how much money will be paid in interest, as well as the interest rate that is best suited for your level of risk. Generally, the better your financial position and credit history, the better your interest rate on the mortgage will generally be applicable.

You are saving both yourself and the mortgage lender broker time in assessing your specific case, when you have educated yourself on what your affordability payment maybe.

By being educated, you also have a sort of protection mechanism in place. You are more likely to sense wrongdoings, or unfair dealings when you come prepared. They can not tell you something negative about your financial circumstances that may not be true, because you have reviewed your situation and are aware looks like, and understand the type of deals you are capable of qualifying for.

So here are the top 3 things you need to have before you begin shopping mortgage lenders:

Credit Report

Don’t rely on the mortgage lender to pull your credit report. Take responsibility and pull it yourself! You can get your credit report for free. Check for mistakes or discrepancies, as they can happen often. You can see the exact items on your credit report and your credit score. Perhaps there are items you can quickly take care of, or items you simply forgot about that could be easily closed out. You can also have an explanation planned for less than attractive items on the credit report.

Perhaps you fell on hard times, but since have taken steps to correct the problem and are now in a better position. When you understand your credit history you have full control over the information and how it is used in the mortgage process.

It is much better to come prepared with an explanation for a negative item, rather than being surprised by the item by the broker and responding with a “What?” or “I don’t know.”

Income and Expense Sheet

To assess how much of a monthly payment you can afford, an analysis of your total income and expenses needs to be done. You can do this by writing down every source of income as well as the amount, every month. This may include paychecks, alimony, child support, investments, a side business, etc. Anything that contributes to your income is a source.

You then would want to determine your monthly expenses, such as rent, car payment, food, cellular phone bill, utilities, clothing, etc. Anything that is taken from your income is considered an expense.

Everything that is left over is considered disposable income, and this is used to help determine how much payment can be afforded every month in congruence with your current rent or lease payment.

Asset Documentation

Assets are a definite plus when applying for a mortgage. It shows the mortgage lender that even if your cash reserves are depleted or in trouble, you will still be able to afford the monthly payment. Assets may include investment properties, investment accounts, types of cars and household items, etc. Anything that can appreciate or return your money is considered an asset. Assets are used to gain wealth, not just have a large bank account. Be prepared to show these assets with supporting documentation.

If you come prepared with this information and documentation to support it, you are halfway to getting your mortgage application approved! The process will be much smoother and more pleasant by having this information readily deliverable to those who might need it. If you need help putting this together, ask for the help of a financial advisor. There are many resources available for your use.

It goes without saying getting the right mortgage deal in Mississauga is hugely important. When you’re looking for a large mortgage, this is even more paramount. The financial and personal commitment that comes with a business venture involving a mortgage is one that can inevitably have a substantial impact on anyone. Taking the time, trouble, and advice to get yourself the best deal for your particular situation greatly increases the likelihood of success for your projects.

Specialist brokers

There are many aspects of the mortgage industry for which you can use specialist services, and large mortgages are one such area. Large mortgages tend to have their own unique set of factors and potential issues that it pays to bear in mind. Using a specialist broker for a mortgage affords you the advantage of experience in this particular field and knowledge that can bring you significant financial and personal benefits.

A specialist mortgage broker is in a position to take into account your objectives, and to combine this with expert knowledge of the market, giving you sound advice as to which deals are likely to work for you. Rates, fees, and repayment options will all be considered in your initial consultations with a mortgage broker, and the best available deal sought out for your requirements and budget.

Situations

Of course, large mortgages are used for a variety of different purposes, some personal and some business. If you’re considering a property with a high Loan to Value rate, then a mortgage specialist is best placed to advise you as to the options and risks. In high LTV situations, your broker can often negotiate preferential terms using a number of options such as additional assets.

When it comes to Buy To Let mortgages, the value of using a specialist broker can be huge. With large BTL projects, securing a mortgage deal that’s going to work in the long term is essential. In cases where multiple units are going to form part of a business venture, specialist brokers can also offer additional benefits in terms of rates and fees.

Connection to Mortgage lenders

When it comes down to it, a mortgage brokers’ ability to give you access to the best of the mortgage market is dependent on links within the financial sector. Having access to a variety of different lenders who are interested in large mortgages is one of the main reasons using a specialist broker is beneficial to you. From Bay street, international and private banks through to specialist mortgage lenders, a broker can give you an overview of the available options for mortgages, together with the advice and guidance to help you navigate them.

Mortgage brokers in Mississauga offer two main advantages to individuals and businesses looking to secure a good deal for their properties. First, they are able to bring you the best deals available through their relationships with lenders. Second, they are able to consider your position, gain an understanding of your aims, and advise you as to how best to achieve these, through an expert understanding of the market and your personal financial circumstances.