Congratulations, you’ve decided it’s now time to purchase a new home. The first step is to get pre-approved, and look for the perfect mortgage solution that fits your needs. Here are 6 common mistakes I see purchasers making. So avoid these at all cost, and I can promise you’ll have a much more relaxing time during financing.

1. Assuming the banks is the first, and best place to shop for a mortgage

Mortgage brokers send millions and millions of mortgage dollars to banks every year, and therefore as a thank you the banks give us lower interest rates than they’d offer to someone walking into a branch off the street.  Same way Wal-Mart can offer such low prices to their customers because of their relationship with their suppliers.

Furthermore, a bank has one mortgage option to offer, whereas a broker has access to that same offer, and many more. Ask yourself this, in anything in life, when making a decision would you rather have a choice of one, or many?

2. Shopping your mortgage options with too many lenders

When you go from institution to institution, you run the risk of having your credit score pulled numerous times. Many Banks and lenders do not like to see this as it may interfere with your mortgage application as they will question your loyalty, or how serious you are. If you go to a mortgage broker though, your score is pulled ONE time only, and you’re protected from lenders knowing that you’re shopping.

3. One does not know their credit score

Ones credit score is a major factor in the mortgage application. The first thing lenders look at is your credit history and score. Your score will be the difference between giving you access to the best rates offered, and having to go with an alternative lender.

Do you know your credit score? A mortgage broker can help you obtain a copy of your credit report, and review it with you to ensure your information is correct.

4. Not being prepared for the future 

Yes, rates are currently at an all time low, but new rules, government regulation, and changes when you’re up for renewal, may alter your circumstances.

Keep in mind that when shopping for a mortgage it’s not always about getting the best deal (What’s your lowest rate?, I saw on ratehub…). Focus more on applying for a mortgage product that saves you money if changes occur in the future. Work with your Broker and put together a budget to make sure that you’re not overextending yourself in order to keep you and your family safe.

5. Not keeping your taxes up-to-date

Here are the rules: If you’re self employed or the mortgage application requires a 2 year income average to qualify (utilizing overtime wages and/or bonuses), and you haven’t filed your taxes for the current or past year, you will be rejected for a mortgage.

6. Assuming Mortgage Brokers charge a fee $$$

There’s not many things in life that are free, but fortunately for you, our services are. If I was to tell you that I’d provide you with expert mortgage advice, give you a handful of mortgage options to consider, not have to set up bank meetings, take off multiple days off work, I’d do all the shopping for you, and it wouldn’t cost you a dime, would you say, yes please! Heck yeah you would.  Mortgage Brokers are paid by the lender of YOUR choice for bringing them a qualified buyer (you). As humans, for some odd reason, we think that people in sales are trying to pull a fast one on us. I do it, and I’m sure if you really think about it, so do you. Well sit down with me, judge me, and I’ll show you I only have your best interests at heart.

So I’d hope I’m clear when I say – contact a mortgage professional, and set yourself up for success.

All the best,

-D