Working as a mortgage broker in Mississauga, Canada, I get asked a lot of questions about mortgages. Taking out a mortgage is probably the largest investment that you can make in your life. It can also be a confusing process for some, especially if you are a first time home buyer. Today I’m sharing the top frequently asked mortgage questions, and their answers in the hopes that they will help others when it comes time to apply for a mortgage.
I have bad credit. Can I still get a mortgage?
Yes, it is possible to get a mortgage, even if your credit is not so good. Our mortgage brokers in Mississauga have access to a large pool of lenders. This means, even if you have been turned down by a big bank, we can find lenders who are more flexible with the criteria needed to be approved. In most cases, there is a mortgage package out there for every situation.
Why can’t I just go through my bank for a mortgage?
If you feel safer going through your bank for a mortgage that’s fine. However, if you use a mortgage broker in Mississauga, you will have access to a lot more options than your bank offers. Banks are not very competitive when it comes to traditional loans. But a mortgage broker can find you better packages, interest rates, and mortgage terms that can save you quite a bit. They can also contact your bank to obtain a better deal in many cases.
Does it cost a lot to use a mortgage broker?
In most instances, it is free to use residential mortgage services. Even if you do have to pay a fee, the money that one of our mortgage brokers in Mississauga can save you can be in the thousands.
Can’t I shop around myself and get the same deals as a mortgage broker?
No, because the deals that mortgage brokers have access to are not offered to the public, only through the brokers. The other issue is that every time you make an application for a mortgage, your credit report is pulled by the lender. When you have a lot of pulled records over a short period it has a negative impact on your credit score. However, when you go through a mortgage broker, only one application is filled out and this can be used to look at many lenders without impacting your credit score.
Can I still get a mortgage if I don’t have a 20% down payment?
You don’t always need a 20% down payment to be approved for a mortgage. There are options available to you that will allow for a lower down payment. This is why speaking to a mortgage broker is important. They will look at your financial situation and find ways to lower the down payment, such as using equity from a home you already have or qualifying for a special government-funded mortgage package.
Before you start shopping around for a mortgage, you should have a chat with a mortgage broker like Lotus Loans & Mortgages Corp. They can help you get pre-qualified for a mortgage amount, giving you a better idea of what you can afford before you go house hunting. If you’re looking to buy a home and need mortgage advice, contact Lotus Loans & Mortgages Corp in Mississauga today!