Frequently Asked Questions About Mortgage Financing
So you’ve saved up some cash, done the necessary research, and excitedly informed your family of your intention to purchase a beautiful property. All that’s left to do is secure a mortgage. However, when it comes to mortgage financing, there are many questions you may have but often find answers difficult to come by. Therefore, Jackie at The Mortgage Girl wants to arm you with the most accurate information available to help you purchase a home. To do this, I’ve answered some of the most frequently asked questions about mortgage financing.
1. Why do the lenders want so much information?
Lenders require comprehensive paperwork so they can fully understand who you are, your work history and your access to funds to repay the money they lend to you.
2. Why a ninety-day history of money on deposit?
The Federal Govt introduced the Proceeds of Crime and Money Laundering Act to combat illicit funds being used in purchasing real estate. It places the onus on the borrower to prove the sources of money. It requires a lot of paperwork sometimes, but it’s necessary as some sketchy people try to purchase real estate fraudulently.
3. Why does the lender call my employer?
They need to confirm you are working as a confirmed employee and not on probation. The lender needs to ensure you can make the mortgage payments based on the information provided by you.
4. How do you get paid?
I’m typically paid a finders fee by the mortgage lender when I send your file to them. In some instances, a fee is charged for private mortgages where no finders fee is available. You can talk to me about this if you need any further clarification.
5. Why did you become a mortgage broker?
Over twenty years ago, I was working as a bank manager for a major bank. I was frustrated by not being able to offer the best deals to my clients. As a mortgage broker, I have more lender options and better rates than a bank (most of the time). So you, the client, benefit from increased access to better terms and rates.
If you have any more questions about mortgages, call The Mortgage Girl today! As a leading licensed mortgage broker in Edmonton, AB, I make the best use of my thirty-five years of experience in the financial industry to find optimum solutions for my clients. It includes sourcing lower rates from my prime lender contacts.
I serve clients across Alberta, Edmonton, Gibbons, St. Albert, Sherwood Park, Thorsby, Millet, Leduc, Stony Plain, Spruce Grove, Fort Saskatchewan, and the surrounding areas.