Getting Financing

[r557]

Trying to get my first mortgage has been a bit of a challenge for me.

I have been in a new job for the past year. Prior to that, i was self-employed and had some challenges at times making sure bills were always paid on time. However, since the new job, it is no longer a problem as it`s considered in my part of canada an above average income (gov. it position).

My broker is saying we should probably talk in another month or so to see where we`re at with things. However, i want to continue to shop around and look at properties, but have been getting some resistance from my realtor to view properties until i`m pre-approved for a mortgage.

Am i wasting both mine and my realtor`s time by shopping if i`m not pre-approved? My thought was to view a property, and if i like it, follow the steps outlined in the REIN book to present the sophisticated binder.

Thoughts?

 

[PeterKinchMortgageTeam]

QUOTE (r557 @ Jun 26 2008, 07:02 AM) Trying to get my first mortgage has been a bit of a challenge for me.

I have been in a new job for the past year. Prior to that, i was self-employed and had some challenges at times making sure bills were always paid on time. However, since the new job, it is no longer a problem as it`s considered in my part of canada an above average income (gov. it position).

My broker is saying we should probably talk in another month or so to see where we`re at with things. However, i want to continue to shop around and look at properties, but have been getting some resistance from my realtor to view properties until i`m pre-approved for a mortgage.

Am i wasting both mine and my realtor`s time by shopping if i`m not pre-approved? My thought was to view a property, and if i like it, follow the steps outlined in the REIN book to present the sophisticated binder.

Thoughts?


There are lots of lenders out there and lots of ways to structure financing. Have your considered an alternative lender? Do you have a family member willing to act as a guarantor for a short time?

Its really just a matter of how much you are willing to pay and weather that property (with that financing) fits into your overall plan. Make sure that your broker is experinced dealing with real estate investors and that he/she knows your 5 year plan. Evaluate your options based on that.

 

[r557]

QUOTE (CanadianMortgageTeam @ Jun 26 2008, 07:50 AM) There are lots of lenders out there and lots of ways to structure financing. Have your considered an alternative lender? Do you have a family member willing to act as a guarantor for a short time?

Its really just a matter of how much you are willing to pay and weather that property (with that financing) fits into your overall plan. Make sure that your broker is experinced dealing with real estate investors and that he/she knows your 5 year plan. Evaluate your options based on that.

From doing some diligence, I have received good feedback on this is a good mortgage broker to work with. We never really got much into 5 year plans, so it sounds like that`s something i need to come up with and talk to him about it. He has been very good to work with, in terms of going over my credit report etc. and making sure i understand all items.

What concerns me most right now is the resistance from my realtor towards working with me without a pre-approval. Should this be as big of a stumbling block as he is making it out to be ?

 

[PeterKinchMortgageTeam]

QUOTE (r557 @ Jun 26 2008, 08:10 AM) From doing some diligence, I have received good feedback on this is a good mortgage broker to work with. We never really got much into 5 year plans, so it sounds like that`s something i need to come up with and talk to him about it. He has been very good to work with, in terms of going over my credit report etc. and making sure i understand all items.

What concerns me most right now is the resistance from my realtor towards working with me without a pre-approval. Should this be as big of a stumbling block as he is making it out to be ?


From your realtor`s point of view - its important as the deal obviously can`t complete without financing. Its important for you as well - you will need to know what the terms, rate, amoritization etc. on your mortgage will be as its the only way you`ll know what the cashflow is and weather it`s a property worth pursuing. Even 1% point on the interest makes a BIG difference to your cashflow.

You really need to know what your financing options are - the financing will play a big part in the type of property that you choose.

Hope that helps,

 

[MikeMcCrae]

Remeber there are different types of mortgage brokers as well as different types of realtors. Some mortgage brokers are very good at some things others are better at others and the same applies to realtors. Your team needs to understand your goals and be willing to work with you to make them come true. If you are all not on the same page find new team members. You don`t want people that are just going to agree with you but advise you and let you make your decisions. And then support you when you do make your decision.

As you know buying property for investment and buying property for yourself are two very different things. I always think finding the property is the most important thing, then the money. There are lots of investors out there so even if traditional financing doesn"t work there is often a way to make things work. Don`t let a realtor discourage you.