Obtaining financing on a new or existing home can be a stress-free, straight-forward process if you’re prepared. But if you’re not prepared, there are many common mistakes you can make. Most of these mistakes are easily avoidable with some preparation and informed advice – feel free to call me with any questions/concerns. 

Below are the Top 5 Mortgage Mistakes people make when trying to secure financing for their home:

1. Failing to choose the best product for their situation
2. Automatically renewing their current mortgage with their existing lender
3. Signing documents without reading them
4. Taking it to the limit – running up credit
5. Not planning for your mortgage application

Failing to choose the best product for your situation
There are many different types of loans out there. There are fixed- and variable-rate products, hybrid and no-frills mortgages, lines of credit, 1-10-year terms, up to 35-year amortizations, and more. And although choice is great, it can be quite overwhelming without expert advice. While one person would benefit from a variable-rate product, their neighbour may be better suited to a fixed-rate product. The key is to always explain your current situation and future goals in detail to me so I can select a product that best meets those needs.

Automatically renewing with your existing lender
Although you may feel an allegiance with the current financial institution that holds your loan, they may not be able to offer you the best products. When refinancing or renewing, I will always shop the market for your best available option, much like I do when securing your first mortgage. This ensures you end up with the best mortgage rate and terms customized to your unique situation.

In many cases your bank will offer you the posted rate in hopes of you signing the commitment without shopping around. Make sure you do your due diligence when refinancing and renewing. After all, this is your home, your mortgage and your money!

Signing documents without reading them
Never sign documents without reading them. If you are unsure about your understanding, always ask me for clarification. Remember that you are the one entering into the agreement, so you need to understand and agree with what you are committing to.

Taking your credit to the limit
Make sure that your credit balances are in your favour when it comes to your mortgage application. Lenders are looking for an appropriate debt-to-income ratio. In other words, you need to have more income than you have debt. Avoid running up a balance on your credit cards and pay down existing debts as much as possible.

Failing to plan ahead
If you know that you will need to obtain, renew or refinance a mortgage, it’s essential to plan for it by ensuring your credit is in order. If it’s not, start preparing. Do not make any purchases on your credit cards that you cannot pay off and if you carry a balance on your credit cards, start paying them down. Refrain from making any large purchases before securing your mortgage. If you’re planning to buy a car, wait until after you have secured financing, as your debt-to-income ratio will rise and you don’t want this while trying to secure a mortgage.

Understanding how the mortgage process works and how lenders qualify your loan will help you avoid the above mistakes. As always, if you have any questions or concerns, I’m here to help!

TThe number one mistake people often make when choosing a real estate agent when selling their home is selecting someone based solely on the fact that they’re a friend or family member who is also a real estate agent. It’s important to let your friend or family member know that you will be interviewing other real estate agents – if for no other reason but to make your friend or family member be on their game to prove they are worthy of selling your home. Remember that this is a business decision, not a personal one.

Following are four keys points to keep in mind when selecting a real estate agent:

1. Interview more than one real estate agent. This is often a big mistake people make. It is valuable to hear a couple different viewpoints on the pricing of your home, the strategy proposed for marketing and the track record of the candidates. Also remember that if you’re going to be working closely together for a few weeks or longer, it’s important that you also like the person you will be dealing with. If they turn you off in the first meeting what do you think it will be like after three weeks of continuous contact and meetings?
2. Write out your questions in advance. Do some research, and remember this is an interview. The Internet is full of informative sites that can be used to gather some questions that you should ask your candidates. It also allows you to reflect on their answers later during the deliberation phase to see who you will choose.

1. Innovative and fresh marketing strategies. Make sure you go with the real estate agent who has a broad, unique and innovative marketing strategy.  If the strategy is holding open houses and advertising in the local real estate print media, they’re not offering you anything different than the average agent. Today’s marketing strategy must have a solid Internet and/or social media component as this is the way buyers today are shopping for homes. A staggering 80%+ of buyers today shop online for their real estate. Opt for the agent who comes up with more strategies to get your home in front of as many potential buyers as possible.
2. Price strategy. This is a big one. Make sure you ask lots of questions on how they came up with the proposed price for your home. Try not to get in the way here. Many homeowners have an inflated view of the value of their home and weak real estate agents will just agree with your over-priced value in order to get the listing, and then just beat you down over the coming weeks to get your price where it should have been. It will sell weeks later than it could have if you had priced it right in the first place. If a real estate agent does not respectfully disagree or challenge you on your inflated price, then you need to ask yourself if this is the right professional for you. If you have chosen your candidates wisely, you are dealing with someone who has sold many homes in your area and knows more about the price than you do. Trust the experts.

• We are Canada’s premier online mortgage company, and one of the fastest growing mortgage brokerages nationwide!
• We have more than 1,500 Mortgage Professionals from more than 140 locations across the country!
• Sheldon Moylan is a Mortgage Professional and Experts in the mortgage field and many are ranked among the best nationally.
• We work for you, not the lenders, so your best interests will always be our number one priority.
• We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
• We close loans in all 10 provinces and 3 territories.
• We can process your mortgage in as few as 7 days.
• We are the preferred mortgage lender for several of Canada’s top companies.
• Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!