What mortgage brokers don't want you to know?
You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.
What not to tell your mortgage broker?
You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.
What not to say to a mortgage advisor?
- 'I need to get an extra insurance quote due to … ...
- 'I can't believe how much work the house needs before we move in' ...
- 'Please don't tell my spouse what's on my credit report' ...
- 'I'm still working out the details on my down payment'
What is a bad mortgage broker?
Lousy mortgage brokers are bad listeners
A good sign: before offering any opinions, the broker quizzes you about your financial status and plans. A bad sign: the broker pretends to know what mortgage type you need, or the answer to any other issue that may be vexing you, without having first learned anything about you.
What looks bad to a mortgage lender?
Insufficient Debt-to-Income (DTI) Ratio
Having too much debt will hinder your ability to pay monthly mortgage payments, as more of your income has to go toward paying your debts. Lenders generally want a DTI ratio below 36% to demonstrate you can handle a mortgage on top of your current debts.
What to do before speaking to a mortgage broker?
Obtain a copy of your credit report and review it for accuracy. If there are any discrepancies, address them before meeting with a mortgage broker. Additionally, be aware of your credit score, as it can influence the interest rates and loan options available to you.
What does a mortgage broker want to know?
Lenders are trying to assess if you can afford mortgage repayments, so they'll ask you about your income (the money you have coming in) and expenses (the money you're likely to spend). They're likely to ask about outstanding and ongoing payments, including: credit card and loan balances.
What are mortgage red flag rules?
- alerts, notifications, or warnings from a consumer reporting agency;
- suspicious documents;
- suspicious personally identifying information, such as a suspicious address;
- unusual use of – or suspicious activity relating to – a covered account; and.
How early should you speak to a mortgage advisor?
It's important to see a mortgage adviser at the start of your mortgage journey whether it's your first mortgage or you're looking to re-mortgage.
Is it worth talking to a mortgage broker?
A mortgage broker can also save a lot of time by finding out the best offers from every lender, saving you from making individual appointments with banks. A mortgage broker may also help you to assess your financial situation and make an overall recommendation of the best mortgage for your needs.
Are mortgage brokers shady?
Federal Laws Protect You from Shady Practices
This requires that mortgage brokers work in the best interest of homebuyers and abide by certain consumer-friendly practices including: They cannot "steer" a consumer to a lender offering less favorable terms to increase their compensation.
Is it best to talk to mortgage broker or bank?
a Bank. A mortgage broker can offer a wider array of options and streamline the mortgage process, but working directly with a bank gives you more control and costs less.
Can some mortgage brokers get better rates?
Some mortgage advisors can negotiate a more favourable deal than you would otherwise get with a specific lender and may have access to broker-exclusive deals. Remember, too, that there are some lenders out there that do not deal with the public directly and promote their products exclusively through brokers.
What not to tell a lender?
- 1) Anything untruthful.
- 2) What's the most I can borrow?
- 3) I forgot to pay that bill again.
- 4) Check out my new credit cards.
- 5) Which credit card ISN'T maxed out?
- 6) Changing jobs annually is my specialty.
What are toxic lenders?
in Financial Services. The SEC over the past few years has dramatically ramped up its fight against so-called toxic lenders: convertible note purchasers who gobble up and then dump stock in small-cap companies, turning tidy profits along the way.
What are red flags on bank statements?
Red flags on bank statements for mortgage qualification include large unexplained deposits, frequent overdrafts, irregular transactions, excessive debt payments, undisclosed liabilities, and inconsistent income deposits, which prompt lenders to scrutinize the borrower's financial stability and may require further ...
Is it OK to talk to multiple mortgage brokers?
This has created a trend of using more than one broker to get a mortgage the misconception is that if one broker fails to get a mortgage, another will. Mortgage brokers can be invaluable for helping you get the mortgage you want, and in theory, there is no problem with engaging multiple brokers.
What is proof of income for mortgage?
If you're applying for a mortgage or rental agreement, you'll likely need to provide proof of income. Some common documents to have on hand: paystubs, tax returns, W-2 and bank statements, among others.
What do you say when contacting a mortgage broker?
Say something along the lines of: “Right now, I am looking at houses in the $250,000 range, but I want to make sure that I qualify to borrow that much money first.” Listen carefully to what they say. Ask questions about anything you are uncertain about or don't know.
Can you trust mortgage broker?
You're protected
However, mortgage broker advice is extremely beneficial as you are protected. Essentially, they have a duty of care to you and must justify why they believe this mortgage is suitable and in your best interests. If the advice is not appropriate, you could be compensated.
Who pays mortgage broker fees?
Most mortgage brokers receive an upfront commission for their services. They also add the goods and services tax (GST) on top. Many also receive an ongoing or recurring commission, known as “trail” or “trailer” commission, for each loan they secure. These commission payments are made by the lender – not the customer.
Why use a mortgage broker instead of a bank?
Many individuals prefer to work with a broker regardless of their situation because it gets them access to lenders they wouldn't think to look for. Mortgage brokers may also be able to help loan seekers qualify for a lower interest rate than most of the commercial loans offer.
What is the 3 rule for mortgages?
If you really want to keep your personal finances easy to manage don't buy a house for more than three times(3X) your income. If your household income is $120,000 then you shouldn't be buying a house for more than a $360,000 list price.
What is the best mortgage rule?
According to the 28/36 rule, you or your household should spend no more than 28% of your gross monthly income on total housing costs. You should also avoid paying more than 36% of your gross monthly income toward any debt (including your mortgage payment).
What is the mortgage rule?
The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g., principal, interest, taxes and insurance).
