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.