As your life changes, so does your home owning needs. The home that was "right" for you when you were a first-time homebuyer may no longer be "right" for you now. This means, it is time to re-evaluate your priorities and needs as you prepare to become a repeat buyer. The home buying process will be different for you this time around as both your circumstances and the financing climate have changed.
Once again, we turned to our local experts, our One Link Mortgage brokers, to find out what questions they were frequently seeing from their repeat homebuyers. Here are the questions AND answers:
Question: Do I have to pay you a separate fee for your service?
Answer: The brokers at One Link Mortgage provide their professional services for free. They are paid a commission by the lender once the deal is closed and the mortgage has funded. Should a fee be required, this would be fully disclosed to you by way of a signature, prior to signing the mortgage commitment.
Question: What kind of a down payment do I need?
Answer: The minimum down payment is five per cent. Repeat homebuyers often think that they have to put down twenty per cent on their second home. They don't know that they can get away with the five per cent down payment again.
Question: What is bridge financing and why do I need it?
Answer: Bridge financing allows you to bridge the gap for your down payment on your new home between the possession of your new home and the closing date of the sold home. The loan will allow access to a portion of the equity you have in your current home until the funds are received by the lawyer. There must be a firm sale on your current home in order to obtain the bridge loan.
Question: Do I have to sell my house first?
Answer: For most people, unless you can qualify and pay for two mortgages, you should always sell your existing home before purchasing a new one. Talking to a mortgage broker before you start the process can help you decide if you need to sell your home first. We can work through the numbers with you.
Question: I didn't have to provide all of this paperwork/information last time I got my mortgage. Why do I have to now?
Answer: There have been many regulatory changes since 2008 and many even in the last couple of years. These changes have been made to ensure a strong stable housing market. Things like income confirmation have become a key component of the due diligence that is now required.
As you prepare to meet with your Winnipeg mortgage broker to discuss financing on your next home, keep these FAQ's and answers handy. They will provide you with a solid foundation as you begin the next step in your journey to continued homeownership!
Interested in finding out more about your home financing options? Give us a call today at (204) 928-7722.