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Terminology Tuesday – 2nd Stop On Your Road To A Successful Real Estate Experience – The Realtor

August 10, 2018
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2nd Stop – The Realtor!!!

How important is the Realtor in this process! Really, they are very important and one of the professionals you should never go without. When buying a realtor does not cost you anything, in fact they can save you a lot of not only money but headache as well. To be honest, how many of us really know how to put in place all of the steps needed in order to complete on a huge investment like real estate? I for one would never go without using a realtor and I am in the industry.

How do they help:
Writing up the offer to purchase and presenting to the sellers realtor
Negotiating the price and other terms for you
Setting times for financing dates, property inspection dates that meet the requirements for the lender and the inspector
many properties require permits, inspections for wells, septic, easements, on and on it goes

these are just a few and believer there are many more. The need for the use of The Realtor is huge, we can help you find the right one as well

So, now you have the First Two Professionals you need on your road to a successful experience!!!

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Terminology Tuesday – The First Stop On Your Road To A Successful Real Estate Experience – The Mortgage Broker!

August 1, 2018
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Our New Series on The Professionals you need to ensure a successful real estate experience has begun!!!!

The first professional you need to see is The Mortgage Broker – you need a pre approval first in order to determine what you can qualify for, if you can qualify and what are the steps to get the approval done!!! Remember however pre approvals are just that “PRE” and don’t necessarily ensure you get an approval. To get a full approval you need to not only have your income and debt ratios complete along with the credit check, you also need to have an actual offer in on a property. That comes later though because at this point you need to have a good idea that you can even put an offer in.

So, step 1 is to set an appointment with us, we will go over your income, debts, credit report and give you a very good idea if you are ready and set to go forward with the purchase. Jessica and myself will always ask you to bring in as much income information as you can that pertains you situation, we will put your application onto our mortgage system, go over the credit report with you and go over the entire process with you. At this time as well we will enter into your application the potential purchase price that you are looking for, relate that to the monthly payment you will have so you can better understand how those connect to each other. This is very important so you know based on what you would like to spend for a home you can also see what the payment is per month to feel comfortable with that as well.

Now, you are either set to go to Step Two – The Realtor- or we need to advise and go over with you what steps need to be taken first in order to ensure a successful purchase. STAY TUNED – STOP #2 NEXT WEEK!!! THE REALTOR!
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Terminology Tuesday- Who Are The Professionals You Need On Your Team To Ensure A Successful Real Estate Experience!

July 24, 2018
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This is a very important topic and one we will be addressing over the next few weeks in a series that will help you to understand who you need and why. We will pick one professional each week and explain who they are, why they are important and what they do. I hope you will enjoy this series as we believe everyone needs each of these professionals to assist them along the way.

So, stay tuned and we hope it will be helpful!!

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Conditions Have Been Met – What Happens Now!!!

July 13, 2018
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Things are moving along, you have placed your offer, your mortgage is all approved, now what. Now is the relax time, enjoy the great thoughts about moving into your home. The paperwork is done for now.

The next step is signing the legal mortgage documents at the lawyer. About 7-10 days prior to possession day your lawyer will call you to set an appointment to sign the legal documents which must be done at least 3-4 days prior to possession. They will advise you to bring in a bank draft or certified cheque for the amount of the rest of the down payment and all closing costs which will include but not limited to the lawyer fee, pro-rated property taxes if applicable, title insurance etc. You also need to be sure you have sent to your lawyer proof of fire insurance as the lawyer can not release the funds unless fire insurance is in place as at closing. After that it is a wait time for possession at which time the lawyer will receive the funds from the lender, send over to the sellers lawyer who at that time, once received, will release the keys to the client or the client’s realtor. Now, you move and ENJOY!!!
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Terminology Tuesday – Steps In The Approval Process – Episode 2 – The Purchase

June 26, 2018
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Step 2 in the approval process is the purchase, you now have an accepted offer and ready to get to the approval stage. We have already met with you, assessed your situation, gathered income documents and have most likely pulled a credit report. This gave us some initial information which would have been enough to advise you could go house hunting and given you a range of what you can afford to buy to meet the lender debt ratios used.

So, you have an accepted offer, you need to bring that in along with the Listing sheet. We will advise of any updated documents required such as more current paystubs, an employment letter if we have not received that as of yet and proof of the down payment. We now have the actual amount of your purchase price so can update your application and get it ready to send to the lender. As each situation can be different there will be different documents as each mortgage is different compared to the client situation. We will go over this step in detail with you as now your deal goes to the lender we have chosen for their approval. It is important for us to get as much information as possible in order to expedite the process with the lender, I will step you through that and keep things as simple and pain free as possible, that is what we do. It is now in the hands of the lender!!!

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Terminology Tuesday – Series On “The Approval Process Step By Step” – Episode #1

June 22, 2018
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We are beginning a series on The Approval Process- Step By Step – this is Episode #1 explaining the initial appointment.

You call into our office to set an appointment to receive a pre-approval, we set that appointment and give you a list of important documentation to bring with you so we can better determine your situation and how we can assist. We will ask you what you are looking to do, is it a first time home purchase, are you selling an existing, are you buying a revenue property and so forth. We need to know who you work for, how long you have been at your job, how are you paid, are you an employee or are you self employed or contract, the position you hold at your job.

Then we go further into your situation by processing an application with your personal information onto the application and if necessary at that time pulling a credit bureau to determine debt and your credit rating. We will explain each step in full detail so you understand what is happening along the way. You may not be buying right away and if that is the case we determine how far we need to go with your application based on your plans for a purchase. This is the best time to discuss your options based on what is going on with your income, debt and credit rating as these are the 3 major components of getting an approval for your purchase. You are in control of how much you feel you need to know to proceed and we assist along the way. This appointment can also just be a consultation as you may not be ready just yet however want to know what you need to do when it is time to purchase. That is what we are here for and will assist you each Step of the way.

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Terminology Tuesday – What Are My Options And Why Important!!!

June 12, 2018
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There are many words used in the mortgage process of which you need to know what they mean and most important why are they important!!! Mortgages can be complex and sometimes even a bi scary however if you are given the explanations during your mortgage application, commitment and throughout your mortgage life it will take away those fears!!!

The length of time for locking in your interest rate and the length of time you choose works for your situation as well. Terms can vary from 6 months to 10 years with each one having a different rate attached to them. Lenders buy their money to lend to you from various sources and those cost the lender different amount of interest depending in lots cases on how long they choose from their end as well. The lender then passes on to you the rate depending on the length of your term. You are locked into that term along with the rate that applies from the lender your choose. the lender has a contract with you and you have a contract with them, they will not break that contract unless you start missing your payments. You can however choose an OPEN rate mortgage however beware as those can be costly

In summary, a term is the length of time your interest rate is held for and you can choose. There will be policies with different lenders how you are allowed to pay over and above the required amount and we will discuss that in another blog.

Which Mortgage Broker To Use, Why Use a Mortgage Broker. Home Equity Lines Of Credit, Refinances, Renewals, First Time Home buyers, these are only a few of the many products and services we have to offer at Advance Mortgage in Red Deer. We are Mortgage Brokers In Red Deer , Red Deer Mortgage Brokers

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What You Need To Know Wednesday -Prepayment Privileges – What They Are and What They are Important

June 6, 2018
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There are many things within a mortgage that give you different options in how you are able to payout your mortgage and one of those is the Prepayment Privilege. When you take a fixed term in your mortgage you are set with a payment based on the amount of your mortgage, the interest rate and the amortization time set. Further to that most lenders will allow you to payout over and above the required principal and interest payment without incurring a payout penalty. Those amounts will be based on a certain percentage of the mortgage amount which is usually in the 15%-20% range depending on the lender and the type of mortgage product you agreed to and signed for. Also, the privilege is usually two fold in that it can be a lump sum each year and also an increase to your required payment. The first is based in most cases on the original mortgage amount and can be done throughout the year with minimum amounts allowed each time. The increase in your payment can be set up to the allowed percentage as well and can be less than but no more than the percent allowed.

Note , these extras you pay go directly onto your principal amount owing on your mortgage and can be huge in how fast your mortgage is paid off and therefore the amount of interest paid. Advance Mortgage Brokers in Red Deer have over 30 years experience in the mortgage industry and can assist in explaining how having a flexible mortgage can better equip you with knowledge that will assist you in paying your mortgage quicker. We specialize in first time home buyers, second mortgages, acreage financing, home equity lines of credit, renewals , refinances and much much more. Advance Mortgage is a Mortgage Brokerage in Red Deer and area

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The Difference Between A Pre-Approval, APre Qualification and A Commitment – Why It Matters!!!

May 29, 2018
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Wondering whether you need a “mortgage commitment letter”?  Certain terms in the mortgage industry sound alike but are completely different.  For instance, pre-qualification, pre-approval, and mortgage commitment all sound similar.  But these three terms- which describe three different types of letters you can get from a lender- mean three different things.

Lenders usually provide one of the three and at different times in the mortgage approval process.

Pre-Qualification Letter:   This is the loosest OK from a lender, indication that they may possibly grant you a mortgage. It may come in the form of a letter or a verbal agreement.  The lender most likely talked to you about your income, assets, debt and credit however did not collect any documentation from you for proof.  This may be ok to get you started but means nothing at all until you have supplied the documents required to approve.

Pre-Approval Letter:  a pre-approval letter is a step up from the pre-qualification letter in that the lender has actually checked over your documents of proof and your eligibility for a mortgage.  This evaluation is based on the criteria of the lender.  There usually is a dollar amount determined and you may be given some assurance that they believe in your ability to afford a mortgage.

Commitment Letter: the underwriter has approved your credit, your income and further has approved the property you are buying.  This is the only step of the three that actually approves you along with the property you are buying and is the one you can rely on in going forward not only with you personally approved however along with the property as well and both are 100% needed in order to get a mortgage.  There will most likely still be conditions that need to be fulfilled however this assurance is based on facts provided.

Do not be fooled by thinking you are approved for your mortgage until you get at least to the commitment stage as the other two are only preliminary and based on what has or has not been provided.  They are also not connected yet to the property you are buying and a full approval has to have both.

I hope this has helped better explain these steps in the home buying process.

 

 

 

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