While Whalen Mortgages provides some of the lowest mortgage rates in Fort McMurray, getting a deal on a mortgage is only part of the home buying process. Here’s an overview of the home buying process Fort McMurray residents must follow if they can’t afford to buy the home with cash.
Step 1: Choose Your Mortgage Broker
Why does the home buying process begin with selecting a mortgage broker? Mortgage brokers like Whalen Mortgages provide far more options than Big Banks. If you want to buy land to build a home on, a fix and flip or an unconventional home, Big Banks just won’t deal with you. If you have bad creditor want flexible financing, Whalen Mortgages is here to help.
Step 2: Choose a Mortgage Product
There are far more options than the routine 20 percent down, 15-year mortgage. Learn what mortgage is right for you. Low doc mortgages or straightforward options could get you approved for a loan without paying an outrageous interest rate. You may want the best rate mortgage or variable rate mortgage.
Step 3: Get Pre-Approved for a Mortgage
Once you’ve selected a mortgage product, you can be pre-approved for the mortgage. The lender will give you a pre-approval letter up to a certain amount. That is the most they’ll lend you, and it may serve as the maximum you can spend on the property less your down payment. Now you can begin touring houses with your realtor. Being pre-approved gives you an advantage in the home buying process. For example, sellers will prefer you over someone whose mortgage loan may not be approved, and only pre-approval allows you to close as quickly as possible.
Step 4: Arrange a Home Appraisal
You’ve identified a prospective property. This is when you’ll want to have the property appraised. The seller’s asking price is just that – what they’re asking. The home may be worth much more or much less than that. Lenders require an appraisal so they don’t loan you 50,000 dollars more than the property is worth. However, there are lenders that will offer you a loan to cover the purchase price of the property and repairs to increase its value.
Step 5: Have the Home Inspected
An appraiser says what the home is worth today. A home inspection will at best agree with this estimate. More often, the home inspector comes back with a list of things wrong with the home. This could be everything from a broken light switch to foundation issues and signs of flooding damage. In a worst case scenario, you walk away from the deal because the property needs too much work. You may have to do this when the lender won’t give you money to buy a property that requires that much work. Alternatively, you may need to talk to the lender about what type of loan will cover the purchase and renovations.
Step 6: Extend an Offer
Now that you know what the home is worth and the work it requires, you can extend an offer. This is generally the home’s appraised value minus the cost to repair everything wrong with it. The offer is the beginning of the negotiation process. The seller might agree to fix things, or they may reduce their asking price based on the estimated repair costs.
Step 7: Begin the Purchase Process
The home purchase process could be as easy as being told when you can move in. In other cases, it requires a detailed purchase agreement. Once you’ve hammered out the purchase price, you can
Step 8: Secure Financing
You should have your down payment lined up already. However, you don’t own the home until you’ve paid for it. You don’t have the money until you’ve been formally approved for the mortgage amount necessary to buy that particular property.
Step 9: Work through the Paperwork
A Whalen Mortgages team member will walk you through all the paperwork for your new mortgage. A solicitor should review the home purchase agreement.
Step 10: Review Paperwork with Your Solicitor
Whalen Mortgages can send all of the paperwork to the solicitor of your choice. We can also recommend good Fort McMurray solicitors to review the paperwork for you. When everyone agrees to the deal, you will own your new home.
Step 11: Move-In
A new home doesn’t really feel like it is yours until you move into it. We have created a checklist of things you will want to do during the move-in process.
Step 12: The Follow-Up
Mortgage rates change over time. You may want to refinance your home loan to lock in today’s interest rates. You may need to switch from a variable rate mortgage to a fixed-rate mortgage to eliminate the uncertainty. Or your mortgage is coming up for renewal. Don’t make the mistake of just renewing with your current lender. Fort McMurray homeowners can often save money by switching to a new lender.