Best Mortgage Broker

About half the deals that I do are with mortgage broker that I recommend. The other half is a toss-up. Meaning I never know who I am going to get to work with. Yes, work with. A lot of buyers think that they will be the only ones working with their lenders, however as a real estate broker, I put in a lot of time with them as well. It’s my job to make sure that they have all the documents necessary for the sale, as well to make sure that our mortgage approval deadline is met.

The deadline that was created in the offer is of utmost importance to everyone involved. Sellers are already nervous, so to ask for an extension could potentially kill the deal. They are not obliged to extend. It’s up to me, if I am in that situation, to convince the sellers and their real estate broker that we are still on track to get the mortgage approval, even though we haven’t gotten it yet.

One of my jobs is to stay in collaboration with the listing broker. If I keep them in the loop every step of the way, they will be understanding of what is happening if I have to ask for an extension. Normally it’s in the best interest of the seller to continue with the offer rather than drop it for the next one. However if you got the accepted deal while in a multiple offer circumstance, the situation isn’t stable. The seller doesn’t want to lose time dealing with you when they might have another buyer who has been bugging them for a chance.

Time delays in an offer

When I receive an offer or create one for my buyers, we normally see 10-14 calendar days for financing for a residential property. Over the years, I have been finding that banks are taking much longer to approve the financing. They have stricter criteria and more red tape, which creates more delays. Many buyers may not have their files complete with their mortgage broker as well, which also creates time delays.

“I’ve experienced hundreds of interactions with mortgage brokers, and there have been instances that could have easily been avoided with the right questions from the start. On one deal I did, the mortgage broker was from Calgary. He didn’t know our laws, the time difference was an issue and he didn’t speak French. It was horrible for me and my clients.”

Questions to ask yourself about your mortgage broker

  • Do they live in Montreal (know the Quebec laws and speaks French)?
  • Will they be available or will they be on vacation or away?
  • Will they take care of your case 100%, and not pass it on to an assistant or let the bank deal with it all? (Meaning will they represent you fully and take care of you completely)
  • Are they available on weekends for emergencies?
  • Do they work for one bank and their products, or are they independent and work with all banks?
  • Which banks do they have personal relationships with. This helps to have pull if they need to ask a favor for a rush job.
  • For expenses, make sure from the start that the bank evaluation is paid for by someone else besides yourself, preferably the bank. Some mortgage brokers have special deals with notaries or movers, helping you save money.

Buying a Home For Millennial Investment

Buying a home is a great investment for millennial. Being in your early 20’s and thinking about buying a home may scare you, but it’s actually a great way to get started investing. Here are the top reasons to buy a home as your first investment.

#1 Mortgages are Cheaper than Rent

In 42 out of the 50 states, it’s cheaper to own a home than to rent. Taking on a mortgage can actually save you money now and in the future. The biggest thing standing in most people’s way is the down payment. Luckily, depending on what state you live in, there are many programs that will help first-time homeowners purchase a home for a lower down payment.

#2 Start Building Equity

As you start to pay down your mortgage, the amount of equity you have in your home grows. Unlike rent, you’re not just throwing away your money, but securing it to your home. When you’re ready to move you can use that equity to buy your next home.

#3 Your Lower Budget is in your Favor

When buying your first home, odds are you won’t be able to buy the nicest home on the block. Go for the fixer upper that you can actually afford. Over the years take the time to make improvements to the home and when you’re ready to sell, you’ll be making money

#4 It’s an Investing Stepping Stone

Buying a home is one of the best stepping stones to get started investing. Buying a home, paying your mortgage, building equity, and selling for more than you bought it for is a great way to learn how investing works. You invest in something while it is low, wait for it to grow in equity, then sell when it is high. This is exactly how home-ownership works. If you make enough money on the sale of your first home you can even invest some of that into other types of investments such as stocks, bonds, retirement accounts, or more real estate.

Buying a home is a big decision, but as long as you make your payments on time and let your equity grow, it’s one of the best investments you can make… especially in your 20s. Investing is all about risk, start off with a small but beneficial risk of buying a home and see how it can help guide you towards a future of great investments