- Your broker should be the first one you call
When it comes to financial matters, your mortgage broker should be your first call—and you’re probably going to want to keep him on speed dial. He’s not there just to find you a loan; alongside your Real Estate agent, he’s eager to guide you through the home-buying process.
When you’re navigating the murky, turbulent waters of homeownership (especially if it’s your first go-round), your mortgage broker will be able to provide personalized advice geared toward getting you to shore—safely, happily, and without leaking cash.
- Have a team in place
Part of preparing to purchase a home is “putting a team together so when [buyers] start the process, they’re already locked and loaded.”
So who do you need on your side? A Real Estate agent, of course, but also a home inspector and solicitor, all of which will be handy once closing time rolls around. When you’re already panicked about your budget, rising expenses, and just plain moving, not having to worry about finding a reputable solicitor or home inspector gives you some peace of mind.
“Wouldn’t it be better to already know who you’re going to use?” “People without a clear plan tend to have buyer’s remorse—they panic, they’re nervous versus ‘I’ve got my team in place.’”
- Understand the rules about deposits
You can’t borrow money from a friend, and underwriters will review any large deposits to ensure they’re gifts—not loans.
A mortgage broker can help you figure out the best legal way to fund your deposit, but when it comes to financial regulations, things have to stay fully above-board.
“First-time home buyers short of cash think they can take money from their friend and use it and pay their friend back,” Let’s be crystal-clear on this: “You can’t borrow a deposit from a friend—it’s just not allowed.” There are certain lenders only that will allow this, (not the major banks), however make sure you ask your Mortgage Broker first before accepting the deposit, to make sure that you will be able to use these particular Lenders.
If you’re using gift money to cover any part of your deposit, make sure it’s thoroughly documented.
- Keep your mortgage broker in the loop
Speaking of documentation: Have a lot of it, and share it all with your mortgage broker.
“My favorite clients are the ones who ask me before they do anything.” “Even if they think something is right, it might turn out not to be.”
Your broker will be intimately familiar with the financial regulations involved in buying a home, and thus will be better able to liaise between you and the underwriter when issues arise.
That goes for credit problems, too. If you’re having difficulty getting approved for a bank loan, try working with a mortgage broker first—and have all your papers in order.
“I don’t mind these kinds of challenges.“ I see it as an opportunity to prepare to be a homeowner. I go through every single item on a credit report and address what needs to be done.”
- Don’t make any sudden changes
Once you’ve started the loan process, don’t make any major changes or purchases without speaking to your mortgage maven. And chances are good he’ll advise you to wait.
Any large expenditure or financial upheaval can delay your settlement—or even result in a decline from the bank. Want to buy a new car? Dying for a spiffy new boat? Or maybe some fancy furniture for your new digs? Buying any of these big-ticket items could put your home loan at risk.
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“Be sure your settlement has gone through, and only then can you go ahead and make any major new purchases.”
The same applies to new jobs: Even if you get an offer with a significant pay increase, you still shouldn’t start a new job during the loan process. Or even accept it. Try to put it off until after the settlement.
Many lenders require recent pay slips (from the past 30 days), so taking on a new role during the home-buying process will mean pushing back the purchase.
Think you can hide this stuff from your bank? Many lenders do a verbal employment confirmation before funding your loan, and if they find any discrepancies, it can wreak havoc on your loan.
“Don’t change anything from the time you check with your lender. “Don’t make any changes to your employment. Don’t even put in notice to your current employer.”
Natalie
Acquire Money
www.acquiremoney.com.au
Credit Advisor
BLOG: Natalies Money Moments