Are you buying a new home in Canada? Getting the best mortgage options as a new home buyer may be challenging for you. As you do not know about the housing market trends, the Government and private lenders. A good mortgage agent helps you in this complete process. Hiring a professional who can prepare documents for you. Explain to you all the mortgage options and their terms and conditions is a wise decision. In this blog, you will learn how mortgage agents help you in each step of securing the best mortgage option for your new home.
Who is a First-Time Homebuyer
In Canada, a first-time home buyer is a person who has never owned a house in the last four years. In the case of married people, your spouse also does not own the home in which you are living. Exceptions are present for couples who have separated. You must live in the new home as your primary residence for at least one year from its purchase and follow Canadian residency requirements. An overseas person who has a home in another country but lives in a rental house for four years can also be considered for this new buyer category.
What Does a Mortgage Agent Do
Mortgage agents help people who are buying their new homes for the first time. These agents are responsible for guiding you about all available mortgage options, preparing documents from your side, negotiating with lenders, and finalizing your deal.
Mortgage Agent Responsibilities
Here is what an agent can do for you:
- They help you figure out how much mortgage rate you can afford.
- Instead of contacting multiple lenders by yourself, your agent does the research for you.
- They manage forms, credit checks, and other documents.
- Agents submit mortgage applications, communicate with lenders, and negotiate terms on your behalf.
Why First-Time Homebuyers Need a Mortgage Agent
When you want to buy a new home for the first time in your life. You may have many queries regarding available mortgage options. Maybe you have no idea about the interest rates or loan options that suit your credit history.
In Canada, various Government and private lenders offer the best mortgage rates for people who want to buy a new home. Mortgage agents have a wide network of lenders that help you get mortgage rates, even with a bad credit score. If you have a good credit score, you can get low-interest-rate loans easily.
1st Time Home Buyers Guide
Following is the step-by-step guide on how agents help you get the best mortgage rates for your first own house.
Let’s discuss each step in detail for better understanding.
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Pick the Right Mortgage Agent
You must pick the right mortgage agent who helps you find the best mortgage rates according to your credit history, income, and financial conditions. A right agent can help you to get a good loan amount with lower interest rates, even with a bad credit history. You can search for the best agents in your area on Google. In Canada, Mortgage Squad Advisors provide you with expert agents that understand your finances and have the skills to deal with the best mortgage options in a fluctuating housing market and credit score.
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Review your finances
The first step of buying a new house is to review your finances with a mortgage agent. Clearly tell him about your finances, debt, and income structure. Check the flexibility of your budget, expenses, and income rate. You must have a credit history of 620 or more to get the best mortgage options. Your income-to-debt ratio is also a crucial and deciding factor in getting the best mortgage options. The agent evaluates your finances and gives you the best options to get a mortgage.
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Understand Mortgage Options
There are different types of mortgages for first-time home-buyers. At this stage, new home buyers usually have no idea about the effects of each mortgage type. Even some people cannot understand the difference between variable, fixed, short-term, and long-term mortgage options.
Your mortgage agent helps you a lot at this stage.
He guides about the available options. Explain the advantages and disadvantages of each mortgage type. Your credit history and income structure greatly define what kind of mortgage you should select. Because the mortgage option you will have again for a new home would have a great influence on your monthly budget.
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Get Mortgage Pre-Approved
Your agent for the mortgage will send all your documents required for the mortgage to the targeted lender. He negotiates on your behalf with the lender and wins the best deal for your new home dream with low interest rates. After pre-approval, you secure a mortgage option. You can hunt for a new home for yourself based on your loan amount, interest rate, and monthly income.
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House Hunting
When you start looking for a new house, your mortgage agent will still be here. At this stage, he helps you to evaluate the cost of a new home that fits with your mortgage terms and conditions. This helps you to avoid any issues later on with the cost of a new home and a mortgage approved.
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Apply for the Mortgage
Once you have selected your new home. The agent will send all your necessary documents with the application to the lender for final approval. The success of this step greatly depends on the agent you hired for the mortgage. He filled an application form for you. Check all the required documents and give you guidance and updates throughout the process.
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Review Approval and Conditions
After approval, the lender may ask for a few final steps. Your agent will clearly explain to you all the steps and help you to complete it in time. This helps you avoid last-minute stress and complete all the steps by the due date. When you complete all formalities, your loan will be approved, and start getting your mortgage amount according to the conditions.
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Ongoing support
The agent does not leave you after successfully availing the mortgage. If you still need any guidance at any step before the repayment of the complete loan, the agent will guide you.
Common Mistakes First-Time Homebuyers Make
The main mistake they normally make is selecting the wrong agent for their mortgage. Agent’s skills. Expertise and experience matter a lot in availing the best interest rates. Some people hide their finances, the actual amount of total debt, and other factors that can burden their budget. This creates problems in the long term. In Canada, Mortgage Squad Advisors has an expert team of agents that help people secure a mortgage for their new homes smoothly with better interest rates.
Conclusion
A mortgage agent makes a dream of getting a new home a reality for you by helping you get the best mortgage options. You just have to honestly share all your finances, debts, monthly budget, and income ratio. This clear advice for buying a house helps you avoid any problems later. Some mortgage agents also help you to get the best mortgage rates, even with a bad credit score and unstable income. Professional agents at Mortgage Squad Advisors help Canadian people get the best mortgage rates for their new home.
FAQs
What are the Government Programs for First-Time Buyers
Mortgage agents explain to you all the government programs. These programs include: First Home Savings Account, Home Buyers’ Plan (HBP), First-Time Home Buyer Incentive, Land Transfer Tax Rebates, and extended 30-Year Amortization.
Do I have to pay a mortgage agent in Canada?
No, you do not have to pay for the agent in Canada. These Agents are typically paid by the lender, so you get their help at no extra cost.
Which mortgage option is better, Fixed or variable?
All mortgage options are good. It totally depends on your goals, credit score, and financial conditions. Your agent explains both options and helps you pick what fits your situation.
When should I get pre-approval?
You should get pre-approval as soon as possible. Pre-approval locks in rates, shows your budget, and strengthens your offer. After that, you can search for a new home.
Can someone with poor credit still get a mortgage?
Yes, people with a bad credit score can get the best mortgage rate. It depends on the expertise, network, and knowledge of the agent you hired for your mortgage. Agents work with private and alternative lenders to help buyers with different credit histories.