In our last post concerning Halifax Homeownership FAQ, we explained why mortgage brokers are crucial…
As reported in the media this summer, experts say Halifax isn’t a boomtown waiting to happen – it’s already blossoming.
So, how can the average Halifax Harold/Hailey take advantage of the current economic uptick to increase equity?
Presenting the first in a series of posts aimed at addressing Halifax Homeownership FAQ. This is a means to build equity and invest in the future of yourself and your community.
Halifax Homeownership FAQ, Part 1
What is a Mortgage?
The loan a borrower takes to purchase a home is called a mortgage and is one of the key components of the home purchasing process. As most people buying a home in Halifax will require a mortgage, understanding the basics of the purchasing process is to their advantage when it comes to savings.
Can I Even Get a Mortgage in Halifax?
Absolutely. Maybe not today, and maybe not tomorrow, but with proper guidance from an unbiased mortgage broker and an adhered to a financial plan, many aspiring homeowners in Halifax experience success.
The first step to determining if and how much a borrower can qualify for is to find a mortgage broker in Halifax that they feel comfortable working with. Any broker worth their salt will offer a greater variety of rates than big banks; the best treat their clients as relationships instead of transactions.
One of the best ways to find a mortgage broker is, in typical Haligonian fashion, by word of mouth. Friends, colleagues, and family are a wealth of information and accolades when it comes to whom they prefer working with and are often eager to share their experiences.
Social media sites like Facebook are another great place to crowdsource local opinion. Find out who’s hot and who’s not in the mortgage brokerage industry.
Questions to Ask When Interviewing a Broker in Halifax
- What type of mortgages do you offer?
- What are the associated costs of doing business with you?
- How long will it take for my mortgage approval?
- Where do you process your loans and get them underwritten?
The Documentation Required
Don’t let the hefty list intimidate you if you can’t find literally everything. There’s no shame in leaving an initial mortgage consultation with a little homework to do!
- Employment Details. T4 slips, personal income tax returns, Notice of Assessments from the CRA for the last two years, and a letter of employment from HR stating your position, length of service and salary.
- Banking Information: Financial institution name, branch number, accounts, and balances.
- Verification of Down Payment. As simple as a picture of an account where the moolah is currently waiting, or a letter from the family that says the money is a loan or a gift.
- Consent. Lenders will usually confirm verbally and in writing that they have the consent of clients to run a credit history search.
- List of Debts. The least exciting of the bunch, it’s tempting for people to sometimes exclude a few items here or there, but this urge should be resisted. Credit histories show all the money you owe, and there’s nothing to gain pretending otherwise! This list might include student loans, credit card or line of credit balances, car loans, monthly payments, arrangements, and personal loans.
- Copy of the Listing. Potential homeowners should bring the listing with them if they already know the Halifax home they want to purchase!
- Copy of Purchase Document. Called the Agreement to Purchase and Sale. This important manila folder should be thick with details including the address, what’s included, and the price, deposit, and down-payment the borrower agrees to.
- Condo Documentation. If you’re buying a condo you’ll need to include the condo corporation’s financial statements and status certificates.
- Well and/or Septic Documentation. Rural homeowners will need to include the certificate for the well or septic tank if their property isn’t on municipal water and sewer service in Halifax.
Stay tuned for Halifax Homeownership FAQ Part 2
Contact us today to get in on the boom