Things You Need to Do for a Mortgage Approval

Written by Posted On Tuesday, 09 August 2016 15:05
Things You Need to Do for a Mortgage Approval Things You Need to Do for a Mortgage Approval

Buying a home is one of the biggest financial decisions of your entire life. If you know you’ve found the right property and are certain you can afford it, then you’ve likely submitted your paperwork to your lender already. However, if you’re just starting this process of looking for a home online and haven’t yet given your documents to your mortgage broker, there’s a lot of information you should know about what to expect to avoid messing up your home buying plans. This can help ease your stress after you’ve submitted and given you some understanding as to why the process might take longer than you originally anticipated.

Here’s What You Need to Know Before Getting a Mortgage

Your Mortgage Broker Matters

There might be a lot of mortgage brokers for you to choose from but that doesn’t mean all of them are the same. Some have more experience, are better at their jobs, and have better customer service skills in addition to many other qualities. If you want to avoid getting stuck with a mortgage broker who isn’t going to provide you with great service, then do your research. Find someone who has a good reputation for communicating with their clients and giving excellent customer service all around.

Another reason why your mortgage broker matters is that if they have a bad reputation, this could cause a huge delay in your paperwork being processed. Lenders who have bad relationships with certain brokers are more likely to give any applications submitted by them extra attention. Unfortunately, this extra attention adds up to extra time, which isn’t something you want when buying a home. Being careful about choosing your mortgage broker is one of the most important tips on buying a home that a client should keep in mind.

The Lender Might Give Preferential Treatment

There are many lenders who have special relationships with lenders because they send a lot of business to them throughout the month and year. As a result, the lender they work with is more likely to send all of their applications to one specially designated underwriter instead of the head office. Often times this leads to a much quicker response time for the clients. 

Unfortunately, if you’re not working with a mortgage broker like this, you are not likely to experience any preferential treatment. In most situations, your application will be sent straight to the head office where it will fall into the hands of an underwriter who works there. This can add a lot of time to the process, even if you submitted early.

Applications are Organized by Deadline

Most underwriters who work for lending companies organize applications by deadline rather than the date they were submitted. This means that even if you submitted yours weeks earlier in order to get things done quickly, you may not get a response just as quickly. However, this doesn’t mean you should send in your application later. You should still send it in as early as possible while making sure you clearly write out your approval deadline.

Things May Not Go as Planned

Even if you’ve double or triple checked your paperwork and sent it in on time, you’re never guaranteed a smooth application process and you may end up wondering why the banks are not approving your mortgage application. You may not even get a response by your deadline, which can cause you incredible stress wondering if the seller will wait a few more days for a response. If you want to have a little bit of peace of mind in the event that this happens, then ask your Realtor to have the seller sign an extension for the financing condition date at the beginning of the purchase. In case the bank can't complete the approval on time, this will allow the buyer a few extra days to get financing without the seller being able to cancel.

Managing Your Expectations

If you adjust your expectations before you submit your mortgage application, you’re much likely to become disappointed when you don’t hear an immediate response. However, it’s also important to do research on the professionals you surround yourself with, especially when it comes to your mortgage broker. By doing so, you’ll be much better prepared for the buying process and any bumps that might come along the way. For more details and articles to read about buying a home, be sure to visit this real estate blog in Calgary, AB.

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Joe Samson

I have lived in Calgary, AB since 1991 and have started working in real estate in 2005. Up to date, I have helped hundreds of satisfied buyers and sellers to successfully complete their real estate transactions. 

Initially, I have fallen in love with real estate even before I’d ever thought about becoming a real estate agent. My early years were fulfilled with buying and selling revenue producing properties. As the years passed, I have become more attached to dealing with real estate and as people got to know me and a little more of what I have done, I have naturally transitioned into helping others to build a path to their financial success by investing in real estate. And the rest has become the story of my life…

This may shock you, but my main focus isn’t on selling real estate. I mostly put my attention toward online marketing which ultimately helps my sellers to find a buyer for their property and to get the maximum possible sale price. 

In the 21st century, marketing is immensely different then what it used to be 10 years ago. I find it imperative to stay ahead of the competition and figuring out what works and doesn’t is the backbone of my business and it allows me to generate the best results for my clients. 

I also love providing help to my buyer clients by offering them a state of the art website and access to all homes for sale in Calgary, AB. 

I also believe that by answering my client's question in advance helps me to provide the best experience and I intend to achieve that by keeping my Calgary real estate blog up to date on a regular basis.

I service the greater Calgary area and its surrounding suburb communities. Some of the most popular communities in South Calgary that I service are Evergreen, Silverado, Chaparral, and Cranston. West Calgary and City Centre Calgary also contributes a great deal to my business area. Other parts of the city such as Southeast Calgary where many new homes are being built have also become a great joy to work in while helping clients finding their new homes. 

One of the principal foundations of my business model is that I’ll always tell you what you need to hear versus what you want to hear. Your interest is guaranteed to be more important to me than anything else. Integrity is the lifeline of my daily interactions with others and our mission is to “honour our clients with our world and do what we say we are going to do... when we say we are going to do it.”

If you’re thinking of buying or selling a home in the Calgary area, please reach out to me anytime and I’d love to help you to navigate you through your home buying journey.

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