Shopping for a mortgage in Victoria requires a fair bit of thoroughness. You’re essentially establishing a long-term financial road-map that allows you to pay off your home in the most manageable way possible without compromising your other financial demands. Options are endless, and the process is extensive. As a result, mistakes happen, especially if first-time home buyers are involved. They’re more common than people think, as the top realtor in Victoria BC can attest to. Here are a few common mortgage mistakes, and how you can avoid them.
Passing on a Local Mortgage Company
Real estate is a localized industry. A lot of homeowners and industry professionals tend to forget this. Homes are everywhere, so it only makes sense that mortgage brokers in abundance will cater to a specific community or city. Victoria is no different.
It wouldn’t be fair to you or the mortgage broker if you were in completely different areas while the broker gave advice or provided service. Additionally, real estate markets in different areas have contrasting home values, property tax rates, and other various rates. It’s best to hire a local mortgage broker who knows the values and rates in your area. This ensures you get precise and accurate information to help you make thoughtful decisions. If you aren’t sure who you can ask, the best realtor in Victoria BC can help.
Prioritizing Pre-Qualification over Pre-Approval
They sound the same, but pre-qualification and pre-approval are completely different processes. Mortgage pre-qualification often forgoes any extensive research on the person who is asking for the loan. It’s usually issued based on the information a lender provides. However, some borrowers aren’t honest with this information and, if you decide against being transparent with your info, you can kiss getting a mortgage goodbye.
On the other hand, pre-approval is a more detailed process. It’s issued only when you provide credit reports, paycheck stubs, tax information, and other important financial details. In Victoria, BC, the top realtor will ask for pre-approval before showing a home because you show an improved capacity to secure the financing. With pre-qualification, the potential of acquiring a loan reduces significantly.
Putting Little Money Down
Many mortgage providers allow you to make a home purchase while putting little to no money down, a seemingly enticing but realistically damaging route to go. Putting down a small down payment makes you susceptible in the marketplace. Sellers tend to go with prospective buyers with higher down payments, showing they have the financial wherewithal to handle the expenses. Plus, if your down payment is lower than 20% of the home’s price, you’ll have to pay mortgage loan insurance on top of the money you’re paying. Save yourself the trouble and beat the 20% threshold. It will help you financially in the long run.
Need a top realtor in Victoria, BC, to help you put your Victoria home on the market? Let’s have a chat and iron out your next steps.
