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Getting Prepared for Your Mortgage Broker

What Your Mortgage Broker Needs from You

Consulting with a mortgage broker before you buy a new home or before you refinance an existing mortgage can save you thousands of dollars in financing costs over the term of your mortgage.

What Your Mortgage Broker Needs from You

Consulting with a mortgage broker before you buy a new home or before you refinance an existing mortgage can save you thousands of dollars in financing costs over the term of your mortgage. For sure you'll want to check out all your options and you may find that a reputable mortgage broker gives you the most flexibility in the market when shopping for a new mortgage. A mortgage broker can help if you are:

- wanting to get pre approved to see how much house you can actually afford
- a current mortgagee whose term is expiring
- looking to access equity in your current home
- seeking a second mortgage or a home equity line of credit
- buying a house
- wanting to finance the purchase of a business
- in the market for the first time to buy a house

To do the best job for you, a mortgage professional will require some basic information before they will start to shop on your behalf. Being prepared will help you get the best deal and frankly, not being prepared for a meeting is a waste of everyone's' time.

Specific document requirements may vary from region to region but generally you'll need to validate your income and your overall credit worthiness. Your mortgage broker will expect you to bring standard documents that will prove that you have income and acceptable debt ratios. Bring along a pay stub, completed tax returns, and any other documents that relate to your assets and liabilities.

The better you prepare for this meeting, the better the possible solution that your mortgage broker will be able to present to you. Be reasonable but be thorough. Obviously, a lender needs a complete picture before they'll even think of extending you any type of mortgage offer. And it's the mortgage brokers job to present that information so you want to help them do their job by giving them what they'll need before you can get financing.

When it comes to mortgage financing the more information the better. And again, the information needs to be current and accurate. This will help ensure that you get the best rate and terms for your new mortgage. Being matched to the right lender and the right mortgage product will ensure that you qualify for financing and in the process, save you thousands of dollars over the term of your mortgage.

A mortgage broker should be able to "show you the money" but there are other professionals who you'll need on your side too. A real estate lawyer will ensure that everything gets buttoned up appropriately but they will need to liaise on with your real estate agent, possibly a home inspector and your insurance advisor. Your mortgage broker will rely on the information that these various team members are responsible for.

If you live in a city called Mississauga for example, you can find most of these team members by doing a quick search on Google using the name of the city as part of your search. To find a mortgage broker for example, you might search for the keyword Mississauga mortgage broker for instance. Once you find a broker that you want to meet, remember that their role is to get you a great deal. Mortgage brokers pried themselves on their independence and in their ability to survey the whole market when it comes to getting a great mortgage deal. However, with so many lending options available in the market place, it's more realistic that your mortgage broker deals primarily with a select few lenders. By concentrating the majority of their mortgage business with a few lenders, a mortgage broker can gain a degree of leverage when looking for hot rates or an approval on a borderline application.

If you have good assets, great credit and a solid job for example you should expect a great rate. Your mortgage broker will be able to find and deal that is below most lenders advertised rate. The self-employed on the other hand experience a chronic degree of rejection when dealing with standard Bank lending procedures. Your mortgage broker will know how to get you a mortgage if it's doable at all.

It's worth checking your mortgage brokers website because you may just find a checklist of what's advisable to bring along during your first meeting. If not, phone and ask before you make the trip. You'll probably need for instance; ID validation such as a drivers license, income and employment verification, a verifiable statement of assets and bank accounts, a verifiable list of other income sources, a list of any liabilities and debt obligations including credit card statements, lines of credit and so on.

Typically you'll need:
-- income verification, such as a signed letter of employment or pay-stub
-- a balance sheet listing your assets and liabilities
-- identification verification such as a drivers presence
-- a list of projected or actual utilities and property tax payments
-- a complete list of your credit cards, lines of credit, student loans etc
-- verification of any other income streams which are currently being paid
-- a listing of contact information and the names of your other mortgage team members

Prepare well and you may just get lucky. Lucky to get a mortgage rate that is better than you expected or lucky to get a mortgage that you never thought you would qualify for in the first place. After all "luck is what happens when preparation meets opportunity".

So prepare for that meeting with your mortgage broker and all the best to you getting a new mortgage.

Jean-Pierre is a freelance article writer who has ghost written hundreds of articles that have been published both on and offline. He is a well traveled and well educated man about town. He is a contributing author to a variety of local city directories including a new Canadian site called PeelSeek.com where he has agreed to create content related to a host of finance issues and general money matters such as <http://peelseek.com/article/guide/money-matters>Mississauga, Brampton and Caledon mortgage broker information. He will also review tax matters and financial advisor issues for the region.