we are committed MORTGAGE BROKER BRADFORD

It’s normal to feel excited and over the moon when you are about to buy your first home. Your first home is a major investment, and you can’t help but be happy knowing that you will no longer rent. However, acquiring your first-time mortgage is not always easy. Many people fear obtaining a first mortgage, while others are unfamiliar with the process. At Certified Mortgage Brokers, we make the process of obtaining a mortgage simple and straightforward. We guide first-time mortgage applicants through the various mortgage options available.

A certified mortgage broker will:

• Help you understand the entire mortgage process
• Help you calculate and determine the mortgage amount you qualify for
• Help you weigh different mortgage options to choose the right one
• Help you get a pre-approved mortgage. A pre-approved mortgage gives you an advantage over other mortgage applicants who might be eyeing the same property as you.
• Help you take advantage of the Home Buyer’s Plan that allows you to get as high as $25000 from your Retirement Savings Plan
• Help you take advantage of different incentives like First Time Home Buyer’s Tax Credit and the Land Transfer Tax. We like to have first-time mortgage applicants take advantage of every available incentive.
• Ensure that you understand all the mortgage terms and conditions to enable you to choose a mortgage that suits your budget and lifestyle.
• Ensure that you understand all the costs involved, including the closing costs.

The process of acquiring your first home doesn’t have to be stressful. With our guidance, you will make a smart decision.

A mortgage refinance entails renegotiating the existing mortgage loan agreement. Through a mortgage refinance, you can access the equity in your home. A mortgage refinances could also help you take advantage of lower interest rates. It can help you consolidate your debts, especially expensive debts like credit cards and personal loans. During a refinance, you will have an opportunity to apply for new mortgage terms. You can avoid paying prepayment charges if you refinance your mortgage at the end of the repayment term. However, even if you refinance your mortgage before its term expires, the prepayment costs you incur will be lower than the great interest savings you will make from the refinance.

Is refinancing right for you? If you’re considering a mortgage refinance, below are some of the factors that you should consider:

• Your current mortgage’s interest rate
• The interest savings you are likely to make from the new mortgage
• The new mortgage terms and conditions
• The penalties for prepayment or early exit

To avoid paying unnecessarily high interest that could amount to thousands of dollars over the mortgage term, you should evaluate your mortgage every year. You might realize it’s more profitable to clear your existing mortgage and all the charges involved and apply for a new mortgage.

When you refinance your mortgage, you can access up to 90% of your home’s equity. You could make significant savings whether you are refinancing your mortgage to take advantage of lower interest rates or to consolidate your debts.

With the guidance of a professional mortgage broker, refinancing can help you reduce the monthly repayments and give you a chance to use your home equity on other investments.

A mortgage renewal entails signing a new mortgage term when the current term comes to an end. While renewing your mortgage, you have a perfect opportunity to renegotiate the terms of your mortgage contract. You can negotiate the interest rates, the term of your next mortgage, and even the lender. You don’t have to renew your mortgage with the current lender if you aren’t happy with their terms. You can change your mortgage’s terms to align it with your needs and lifestyle, which may have changed since you first obtained your mortgage or renewed it. Keep an eye on your email inbox or your mailbox when your mortgage is nearing its term.

Most lenders will provide you with the mortgage renewal statements several weeks before the end of the term of your mortgage. You will receive the documents in your mailbag, including the payment amount, current balance, and payment frequency.  You will also receive a renewal form that you can sign and send back. The worst mistake you can make is signing the renewal forms without negotiating your mortgage terms.

You should make the most of the mortgage renewal by contacting your mortgage broker several months before the renewal. This will give the mortgage broker sufficient time to negotiate for a better mortgage deal for you. They will be able to get a mortgage deal that suits your current and future financial plans.

A private mortgage is financed through private sources of funds and not through conventional mortgage lenders like banks. If you struggle to get a mortgage the typical way, a private mortgage will come in handy for you. Some borrowers can’t qualify for a loan from conventional lenders. At times, the borrower’s finances might not appear adequate for the bank’s preference, and the borrower might not have the right documentation.

Mainstream lenders require you to verify that you can repay a loan. If you do not have the means to verify this, you may not qualify for lending. You may not have a steady work history or the W-2 forms that lenders require. If your credit history is short, especially for young lenders, you may not have the credit history that lenders require. Compared to a conventional loan, it is much easier to qualify for a private mortgage.

People who could greatly benefit from a second mortgage include:

• People who can’t adequately prove their income, especially those in self-employment
• Individuals seeking to invest in unconventional assets
• People with a high debt to income ratio
• If you have a poor credit history or no credit history at all
• People applying for a second mortgage to renovate their homes or invest

Unlike traditional banks, private lenders are more approachable. They provide personalized services and will tailor your mortgage to suit your lifestyle. Applying for a private mortgage is easier and faster than that applying for a conventional mortgage.

Most private mortgages are short-term. They often last between one and three years. Most people often have an exit plan when applying for a private mortgage. A private mortgage is an interest-only loan. Our qualified mortgage brokers can help you apply for a private mortgage and prepare an exit plan.

If you want to secure a significant amount of money using your home, a second mortgage would be a good option. A second mortgage is also known as a home equity loan. A second mortgage is borrowed against the property that secures the first mortgage. A second mortgage is riskier than the first mortgage, and its interest rates tend to be higher. However, despite the second mortgage having higher rates, it is still more affordable than an unsecured loan. Therefore, you can obtain a second mortgage to consolidate your unsecured loans like personal loans and credit cards.

You should get the market value of your property if you plan to apply for a second mortgage. To ensure that you have an unbiased estimate of your property’s value, you should get more than one valuation. Most lenders will give you a second mortgage equivalent to 90% of your home’s equity. However, most homeowners will require you to appraise the property, which means that you will have to pay the appraisal and the closing costs. Second mortgages are interest-only mortgages and the term of a second mortgage is often shorter than that of the first.

Compared to the first mortgage, the second mortgage is subordinate. When you default your first loan in case of a foreclosure, priority is given to the first loan. The first loan will be paid off first before the second one. Therefore, the second mortgage lender will be at risk of not recovering all their money. Due to this risk, second mortgages have higher interest rates than the first mortgage. Our certified mortgage brokers can help you negotiate for a good second mortgage deal. Usually, second mortgages are offered by private lenders, not conventional mortgage lenders.

Despite the many advantages of being in self-employment, most self-employed people face challenges when applying for a mortgage. Being in self-employment doesn’t mean that you can’t apply for the same mortgages that people in formal employment can. However, you will have a much more difficult time proving your income to the lender. The tough part about applying for a mortgage revolves around documenting your income. It’s not always easy to document your income when you are a contractor, a business owner, or a freelancer. Self-employed people require more paperwork to prove their income than W-2 employees. As long as you can document steady and reliable income, being in self-employment should not stop you from obtaining a mortgage.

When determining the loan amount you can manage to pay, most lenders will calculate your debt-to-income ratio. Deducting allowable expenses from your taxable income could pose a challenge. However, some mortgage lenders are understanding and might be willing to add back the allowable expenses when determining your mortgage eligibility.

If you are in self-employment, a private mortgage lender might be your best option because they aren’t bound by the same strict rules that bind conventional mortgage lenders. You have a higher chance of having your mortgage approved if you are willing to make a down payment and if you have valuable collateral. Many private lenders are interested in the value of the property you intend to use as collateral for the loan.

Not every person wants to buy an existing home. Some people prefer to construct a new house instead. If you wonder whether you can access a mortgage to build your house, the answer is yes. A construction mortgage, also known as a builder’s mortgage, allows you to draw down on the mortgage amount at the predetermined home construction project stages. You will receive the amount you need to complete the house in stages. The first advance will be available as an equity takeout if you already own land. If you do not own land, the first advance will help you purchase a vacant plot.

While seeking construction financing, you will have to place a down payment of 25% to 35%. You have to make numerous decisions when constructing your home, including resource allocation and setting the timelines to complete different tasks.

When applying for construction financing, the lender will most likely request your contract with the construction company. The lender will also request your construction plans. You will need the municipal approvals and the deed of sale if you are building on vacant land. You will need to provide an estimate of all the costs involved.

It’s common for delays to occur in the course of construction. It is important to ensure that you have some funds that could shield you against these delays. You should set aside 15% of the total project cost to cater for miscellaneous expenses. Even if constructing a home is often risky for the borrower and the lender, you can build your dream with an experienced mortgage broker’s guidance.

The more equity on your home, the higher the HELOC loan you can qualify for. Usually, home equity increases with time as your home’s value increases and as you repay your mortgage loan. You can get a HELOC of up to 65% of your home’s value after a home appraisal. In some instances, you may obtain a higher percentage if the lender chooses to combine your HELOC with the balance outstanding on your mortgage. Some of the administrative HELOC fees that you might incur are:

• Title search fees
• Appraisal fees
• Legal fees
• Title insurance fees

After the approval of your HELOC, the full HELOC amount will be available to you, but you will only pay interest on the amount that you use. With HELOC loans, you can pay back the principal whenever you please. They are usually interest-only loans. Upon paying back the principal amount, the amount you pay will be available for you to borrow again.

HELOCs are a great way for homeowners to access funds at an interest lower than that of unsecured loans. You can choose to repay your HELOC loan whenever you please, and you won’t incur additional charges for repaying your loan early.

You must have the financial discipline to get the most out of your HELOC loan.  You will have access to a large amount of money, and if you aren’t disciplined, you might end up misusing the money. HELOCs are an easy way of accessing money, but you have to use them with caution.