Today’s mortgage landscape is very different from what it was a few years ago.
Every situation mortgage brokers deal with is different, so we must do our due diligence to know your wants and needs for today and in the future.
Each of our clients differ in various ways and it’s up to us to decipher the details to place you in a position that will not over-extend your finances and give you peace of mind knowing you can move forward with your lives without worry. In today’s financial world, amortizations have decreased from 40 years to 30 years for conventional mortgage financing and 25 years for high ratio financing.
Lenders require a lot more paperwork from you to ensure all of the mortgage requirements are met. They look at your employment history and will require letters of employment from your employer along with a recent pay stub.
In the case of self-employed borrowers, it is generally a requirement to obtain a minimum of two years of verification of income which will vary if you are a sole proprietor, partnership or a limited company. You must fit within debt servicing ratios that the lenders establish.
Credit checks are very important in the mortgage process. We can’t stress enough the importance of maintaining your payments on time and ensuring you utilize your credit cards by revolving the balances and not being at their limits.
As is usually stated, past credit is generally a reflection as to your future credit. Mortgage brokers and lenders will take a strong look at the type, location and condition of the property you are hoping to purchase.
As that is the security for the mortgage, there can’t be any negatives to the property.
For example, is the property a former grow op? Is it located in an area away from a major center? Is the property close to a major centre?
All of our clients have different needs and wants and it is up to us to get to know you so we can get the entire picture of what you are looking for.
Due diligence will enable us to do our best to get that mortgage approved by a prospective lender.