Home Buyers Guide 2018 Options
First Time Home Buyers
Cashin Mortgages’ extensive network of trusted lenders, appraisers, lawyers and industry partners is truly remarkable. Our partners provide valuable experience, guides and real life advice for first-time homebuyers who may be unfamiliar with the mortgage process. Our team of dedicated mortgage professionals will apply their extensive knowledge to ensure your experience with us is the best it can possibly be. Our goal is to be impeccable with our communication and education. We will find you the best interest rate in the more importantly the best mortgage terms in the market place.
At Cashin Mortgages, we understand there is an abundance of “free advice” when you decide to purchase a home. Parents, relatives, neighbours and coworkers all seem to great advice and be experts. Who to trust? We understand how overwhelming it can be and may seem like a never-ending maze of government rules and regulations, which seem to change more frequently than any reasonable person may expect. We understand it is difficult to navigate, trust us when we say, there is no such thing as a bad question. We answer any and all questions you may have and we promise to do it clearly without industry jargon and ensure that you understand the answer in its entirety and how it may be relevant to your individual situation.
With Cashin Mortgages’, our first-time homebuyers leave their mortgage journey with experience and confidence and the ability to share their newfound knowledge with friends and family.
Here are some key factors of the home-buying experience explained:
Most banks with push a “Pre-approval”, don’t be fooled. While it is important to be knowledgeable about how much you can afford or how much the government will allow you to borrow do not get misled by a “Pre-Approval”. Let me explain.
If you go online or to a bank a mortgage professional etc. and they just punch in “the numbers” without asking you for “backup” or the paperwork to support the “Pre-Approval” then you are not getting a “Pre-Approval” you are providing them with what we call the first right to say NO! Do not commit to any home purchase or waive your financing conditions.
The first official step of mortgage process is the application. To prepare for the application process make sure you have your paperwork together! Click HERE for a CMHC Mortgage Application Tips.
Here is a great documents with 8 Steps outlining how to move into your Dream Home
Once you have collected the necessary paperwork you are now prepared for your application. One of our Mortgage Consultants will assist you with your mortgage application. Then they will research the market to find the BEST Mortgage Lender for you! Now our skilled team can get you an official pre-approval within hours. The strength of our relationships with lenders allows us to hold your interest rate at its lowest point for up to 120 days without rate increases. Don’t worry, if the rates decrease before you close you will have the privilege and protection to get the lowest rate at the time of closing.
2) Find a home – offer to purchase
Don’t worry, now we understand a pre-approval does not lock you into a mortgage. It serves as one of the first steps to home ownership and helps outline your price range and to secure an interest rate while you start a shop for your dream home.
Once you find your perfect home, you submit an Offer to Purchase (your trusted Real Estate agent will cover this). When your offer is accepted, your Offer to Purchase becomes conditional. The standard life span of a conditional Offer to Purchase is 7 days or 5 FULL banking days. During this period, the home purchaser(s) obtain a full mortgage approval, have the potential property inspected and ensure there are no underlying issues with the home. Once you are comfortable that you can satisfy the conditions you are ready to “waive the conditions” and go firm.
3) Full Approval
Now that you’ve found your home, our team will shop the market for the best lender with the best terms that will loan you the money to purchase the home at your pre-established interest rate hold. A full mortgage approval usually takes between 24 and 48 hours. Yes, it’s that fast, our VIP relationships and the hard work you did preparing the paperwork upfront speeds up the process with our Mortgage Lenders and banks
Cashin Mortgages along with our Verico partners place the most mortgages in Canada over 44 billion in volume a year compared to any other mortgage-brokerage network in Canada. As a result, your mortgage application gets placed at the top of the pile and is processed quickly. Our team will have you commitment ready to be signed quickly and efficiently.
An appraisal is only needed for Conventional Mortgages. A Conventional mortgage is when, as the buyer, you put 20% or more down on your home’s purchase price.
5) Down payment
If you do not have 20% down payment? Don’t worry. For buyers that don’t put 20% or more down on the purchase price, the mortgage is subject to CMHC or GE (Genworth) Insurance premiums that the Banks and Mortgage Lenders obtain for your mortgage.
This premium is intended to protect the lender from higher risk mortgage loans. As a first-time home buyer, you have the ability to put as little as 5% down. You may have heard a lot about this recently including the tern “Stress Test”. All these new rules fall under the “B-20” rules which you can find HERE
Paperwork is an essential aspect of the mortgage process, Remember the B-20 rules we mentioned above – you can’t avoid it. The amount of paperwork you’ll be required to complete will vary and depends on your mortgage type and your mortgage lender. However, because you have provided the paperwork with in preparation of for you Pre-Approval most of the hard work is done! If more than 30 days have past you may be required to provide updated documents depending on the lender and the time that has passed. Prior to obtaining your Pre-Approval with Cashin Mortgages we have reviewed in full all required paperwork. Necessary paperwork usually relates to employment, income and down payment confirmation and confirmation you are all caught up your taxes.
Legal representation is required to represent you if you purchase a home or a condo. Your lawyer is responsible to ensure your interests are protected, they receive funds and pays out the money you borrow to the sellers solicitor and closes your mortgage on the closing date. Your lawyer informs you of your legal responsibilities in the mortgage process and manages your closing costs which includes land transfer taxes, property tax set and interest adjustments.
Your first-home purchase will be exciting and overwhelming. Thankfully, your Cashin Mortgages team strives to make your mortgage experience positive and is by your side from start to furnish!