Frequently Asked Questions
What is a mortgage agent?
As a mortgage agent we are an independent professional that will work with multiple lenders to find you a mortgage that will suit your needs. We will find a lender with the best mortgage interest rates and terms for your situation in Fort McMurray. There is no fee to work with me as a mortgage broker as long as you qualify under standard lending guidelines. Your mortgage specialist gets paid a commission or finders fee from the lender. If there is a fee, this will be disclosed and documented up front.
What costs should we be aware of with obtaining a mortgage?
Some costs associated with obtaining a mortgage are appraisal, home inspection, legal fees and utility hook-ups. We usually recommend that you have approximately $ 3000 set aside to complete your home purchase in Fort McMurray. We are your Fort McMurray Mortgage Specialists.
What is the difference between and conventional and insured mortgages?
Your mortgage is insured meaning you pay to have CMHC, Canada Gaurentee or Genworth when you have less than 20% down-payment on your purchase. By law, banks cannot lend more than 80% of the value of the home unless it is insured by CMHC (Canada Mortgage and Housing Corporation) or Genworth. These insurers protect the lender against default. If you stop paying your mortgage the insurer takes over the legal costs and mortgage and pays the lender out in full. An insurance premium is charged and is added to your mortgage amount and amortized over the life of the mortgage.
A conventional mortgage is when you have 20% or more to put as a down-payment on your Fort McMurray purchase. In most cases, there is no insurance premium charged. Occasionally, the lender may still need to have the mortgage insured through CMHC or Genworth depending on the location of the property or type of property being purchased. For example a mobile would need to be insured regardless of the down-payment. We are your trusted Fort McMurray Mortgage Brokers.
What are the costs of the CMHC, Canada Gaurentee or Genworth premiums?
Below is a chart of the premiums you would pay on an insured mortgage. The amount that would be added to your mortgage will depend on the amount you have put as a down-payment. The premium is a percentage of the mortgage amount.
Why is getting a pre-approved so important?
Getting a Fort McMurray mortgage pre-approval is important for many reasons:
1. It is important to know what amount you are qualified for before you go shopping for a home so that you are shopping in the right price range. The Fort McMurray Real Estate market is getting busy so lock in your Fort McMurray Mortgage Approval today with you Local Trusted Fort McMurray Mortgage Broker. 780-715-7533
2. You need to ensure that you can comfortably afford not only your mortgage payments but all of the other costs of owning a home such as property taxes and utility bills. If you have not owned a home before, these amounts may be a bit surprising. Your Fort McMurray mortgage specialist will help you take a look at the entire picture.
3. You need to make sure that you will qualify for a mortgage based on the lenders criteria and guidelines. If there are issues, it is better to discover them at pre-approval stage so that you and your mortgage professional can work on fixing those issues prior to your search for a home and help financially coach you. If you are not able to qualify for a mortgage at this time, we can assist you in taking the steps necessary to qualify for a mortgage in the near future.
Once I am pre-approved for a mortgage, I will have no problem obtaining a mortgage, right?
It is important to note that a pre-approval qualifies you as the applicant. Your Fort McMurray mortgage Specialist will have confirmed your income, credit and down-payment at this stage. However, we are not able to pre-approve the property you will be purchasing. This is still subject to lender/insurer approval. Therefore, it is important that you always put a “subject to financing” condition on your offer to purchase. Your Fort McMurray real estate agent will assist you in writing the offer to purchase. Also, a pre-approval is only valid if there is no material change in your financial situation. If something has changed since you received your pre-approval (i.e. changed jobs, acquired new debt etc), please contact your mortgage professional so that they can review your file.
What happens when I find a home?
Once you find a home, you and your Fort McMurray real estate agent will write an offer to purchase. Once negotiations have been completed, a copy of the completed offer to purchase and property highlight sheet is forwarded to your Fort McMurray mortgage broker. We then submit the mortgage for final approval to the lender. Once the lender/insurer approval has been obtained, the lender will send a mortgage commitment to your me your mortgage broker outlining the details of the approval along with any paperwork that may still be required. Your Fort McMurray mortgage broker will then contact you to go over the approval and ask you for the paperwork required to complete the mortgage file. Once the paperwork has been received and approved by the lender, your mortgage file will be complete and you can remove your “subject to financing” condition on your offer to purchase for your new Fort McMurray home.
Once you have removed all of your other conditions, such as “subject to home inspection”, then you have purchased your home! Your next step will be to go to your lawyers to sign the legal paperwork required in order to complete your purchase. You will need to set up home insurance prior to visiting your lawyer to close your mortgage. You should expect to go to the lawyers approximately 10 days prior to the possession date. When you go to your lawyers, you will be expected to bring the remaining down-payment and closing costs. These funds must be in the form of a certified cheque or draft. Once you have completed the paperwork at the lawyers, you will then wait to take possession of your home on the possession date negotiated.