Normally it’s in the best interest of the seller to continue with the offer rather than drop it for the next one. However if you got the accepted deal while in a multiple offer circumstance, the situation isn’t stable. The seller doesn’t want to lose time dealing with you when they might have another buyer who has been bugging them for a chance.
Time delays in an offer
When I receive an offer or create one for my buyers, we normally see 10-14 calendar days for financing for a residential property. Over the years, I have been finding that banks are taking much longer to approve the financing. They have stricter criteria and more red tape, which creates more delays. Many buyers may not have their files complete with their mortgage broker as well, which also creates time delays.
“I’ve experienced hundreds of interactions with mortgage brokers, and there have been instances that could have easily been avoided with the right questions from the start. On one deal I did, the mortgage broker was from Calgary. He didn’t know our laws, the time difference was an issue and he didn’t speak French. It was horrible for me and my clients.”
Questions to ask yourself about your mortgage broker
– Do they live in Montreal (know the Quebec laws and speaks French)?
– Will they be available or will they be on vacation or away?
– Will they take care of your case and not pass it on to an assistant or let the bank deal with it all? (Meaning will they represent you fully and take care of you completely)
– Are they available on weekends for emergencies?
– Do they work for one bank and their products, or are they independent and work with all banks?
– Which banks do they have personal relationships with. This helps to have pull if they need to ask a favour for a rush job.
– For expenses, make sure from the start that the bank evaluation is paid for by someone else besides yourself, preferably the bank. Some mortgage brokers have special deals with notaries or movers, helping you save money.
These questions are to help you chose the best person to work on your team. Yes team. When buying, your team consists of your mortgage broker, your real estate broker, a notary, insurance broker and your building inspector. For all of these professionals, you will either be using a recommended person or doing research to find the best deal. Deal = price + service.
Before you look at your first house, you should review your credit report and check it for inaccuracies. Once per year, you can get a free copy of your credit report at: annualcreditreport.com. Before you contact a bank or mortgage company, review the report and clean up any past issues and make sure there are no inaccuracies or mistakes. To qualify for a mortgage, you will need to meet the minimum credit qualification standards.
If you are a first-time buyer or have had credit issues in the past, it is a good idea to talk to your family and friends and ask them to refer a mortgage professional that they have had a good experience with when they applied for a mortgage. To apply for a mortgage, you will need at a minimum the following documentation: pay stubs, bank statements, tax returns, and other personal information. If possible, try and meet your loan officer face to face. This will give you peace of mind and reduce stress. If you are concerned your mortgage could be denied, be sure that you apply for a fully underwritten mortgage pre-approval. A pre-approval will take longer to complete than a pre-qualification, but it will eliminate unforeseen issues such as: employment history verification, residencies history questions, verified funds, past credit issues, and other potential problems. During the pre-approval process, your loan officer should thoroughly review any mortgage programs and down payment options that may benefit you.
Once your pre-approved for a mortgage. Review your budget and determine the maximum monthly mortgage payment that you are comfortable with and the total funds you have available to purchase your new house. When buying a house, remember to include all expenses, such as: upfront costs (appraisal fee, insurance, warranties, and inspections), down payment, closing costs, and moving expenses. Both the real estate agent and mortgage loan officer should be able to give you an itemized estimate of the likely expenses associated with purchasing your new home.
Next determine, what features you need and want in a house and what cities would be the most desirable to you and your family?There may be many well maintained and affordable homes available in your search area that have the features you are looking for. Make sure you prioritize your desired features. You may not be able to get everything on your wish list, but knowing what your requirements are before you get started will make your search easier.