Understanding the mortgage process in Winnipeg is a great way to make sure you can reduce the stress through the ordeal. At first, getting a home loan may seem overwhelming, but it doesn’t have to be. The more you realize about the process and how it flows, the easier it becomes to be prepared for what comes next. It also prevents unwelcome surprises throughout the process.
What are you Interested in?
Take some time to really think about what you want from your home. Do you want to live in one particular area? Do you mind commuting? Are there certain things you need from your home such as the number of bedrooms or bathrooms? Is a yard important to you? What about proximity to schools or parks?
The more thought you put into what you are really interested, in the easier it is to find that location. Some people want a simple home and others are looking for something more elegant. Buying a home is one of the largest purchases you will ever make, so ensure you get what you want.
Bank Loan or Mortgage Broker?
In order to gain financing for your mortgage, you will need to work with either a bank or a broker. There are pros and cons to working with each of them. With a bank loan, you may already have an established relationship with a banker. You may be more comfortable going to them to talk about borrowing the money.
However, a bank has a strict formula that they must follow in order to get you approved for the money. You may need a particular credit score, low debt to income ratio, and other factors. It can be tough to get a bank loan for a mortgage if you don’t have any credit or you don’t have very good credit. Still, it doesn’t hurt to see what they can do for you. There are some programs for first time buyers that you may qualify for if you haven’t purchased a home before.
A broker is a mediator between potential buyers and potential lenders. There is more flexibility with this type of borrowing because the broker has plenty of contacts. They can take a look at your income, your debt, your credit, and other factors. Then they can work with various lenders to find the one that is right for you to get approved. The broker gets paid a commission from the lender, which is what motivates them to find those matches.
Pre-Qualification and Pre-Approval
Understanding if you can get qualified for a mortgage loan is very important. It makes sense to find that out before you start looking for a home to buy. There are plenty of lenders out there now that offer pre-qualification. They will take a preliminary look at your credit report and help you to see if you would be a good candidate for a loan at that point in time.
If you are very serious about getting into a home, the next step is to get pre-qualified. This is an in depth look at your credit, your income, and other factors that would be used to determine how much money you could borrow. That dollar amount will be very useful as it helps you to look for a home within that price range. You won’t be wasting your time looking at homes that you can’t get money for.
Finding a Winnipeg Real Estate Agent
While you can buy a home on your own, it is going to be far easier if you get the help of a real estate agent. They can sit down with you or talk by phone to find out what you need. Let them know if you have already been pre-qualified or pre-approved. This helps them with assisting you finding the right home for the right price.
There are plenty of options when it comes to a real estate agent. You need someone that is motivated, that is friendly, and that you feel comfortable communicating with. Talk to them about what you are looking for in a home. They can let you know about such properties on the market. They can send you pictures and videos for a virtual tour.
If you would like to schedule a walk through, they can help you with that. They can also let you know as soon as any new listings are offered that meet your specifications. Take your time to find the right agent that you are content with. Find out about their reputation, qualifications, and experience.
Looking at Options
You have the final choice when it comes to the home you are going to purchase. Take a look at the options that a real estate agent presents you with. If you don’t like what you see, keep looking. Don’t feel pressured into making a rush decision. When you do find homes you are interested in, look at the neighborhood and other factors that can make a home comfortable for you.
Making an Offer
When you are ready to make an offer, your real estate agent can help you to do so. If you have already been pre-approved for a loan then you have more to bargain with. Many sellers are willing to accept a lower price if they know the interested party is able to get the funding for the home. If you offer less than the asking price, the potential buyer can accept it or decline. If they decline, they can give you a counter offer. This is an amount between what they asked for and what you offered them. Worst case scenario is that they completely decline and you have to offer them the full asking price if you want them to accept.
Once they accept the offer, there are some other stipulations that have to take place. For example, an appraisal and an inspection. If all of those reviews come back well, then the final steps can take place.
Prior to the closing on the home, you will need to talk to your lender. They can get the final approval for the loan completed for you. This will show you the interest rate, the amount financed, and the monthly mortgage payments due. At the closing, all of the final documents will be signed. These documents will include the date that the new owners take possession of the home.