So you have decided to take the plunge into home ownership.
Bank or Broker?
Once you have made the decision, the next step is to decide how you will go about getting your pre-approval.
Should I use my bank or go through a broker?
It can seem like a new world when you are entering the real estate market for the first time and there will be lots of people offering you advice and their opinions. I have spent many years helping first time home buyers get into their new homes and have put together a bit about the buying process and what you will experience out there in the real estate world.
The very first thing that needs to happen is to talk to a lender to get a pre-approval. In order to get this you will need the best mortgage broker you can find or you may want to go directly to your bank and these are the things that you will need to weigh up and seek advice on.
Your bank is just one institution and they may be wonderful and get you the best loan for your circumstances but a broker can search among many different banks and lending institutions to find the right fit with the best rate. They are imperative to use if you have any trickier situations such as being self-employed, newly employed, any previous issues on your credit or anything that a standard bank will not be interested in giving you the loan.
Don’t be discouraged if you go to the bank that you have been using for years and they say they will not be able to give you a mortgage, this is where a good broker will come into play and get you the pre-approval you need that will tell you what you can afford to buy. I have heard countless stories of home buyers being turned away from their bank only to have success with a broker who is usually dealing with 25-30 different lenders.
How do you find the best broker for you needs? Ask trusted friends and family members who they have used and were happy with. They will also be the ones who will tell you not to go to. There are also a lot of posts in Facebook groups asking for opinions on mortgage brokers who people have used that they were thrilled with. Also, most real estate agents will know who the good brokers are that can get buyers a good and strong pre-approval.
Personally, I know a couple that I highly recommend. Once you have your pre-approval in place, you are onto the next exciting step which is shopping for your new home.