2% Central Brokerage

Buying FAQ

Mortgage Pre-Approvals

There are endless benefits to a pre-approved mortgage including knowing your budget, being a more desirable buyer and expediting the process when you find your dream home.

The pre-approval process creates confidence, education and ease to make one of the largest purchases of your life.

Clarify the following:
what is your budget?
What will be your mortgage payment?
Do you need to restructure your financial picture?

Secure a rate for a predetermined timeframe.

Being Self Employed​

Self employment gives you financial and employment freedom

The bad news: The bank doesn’t necessarily agree with you on how much you make. In some cases, they might see you as more of a credit risk than non-self-employed people and most of the time that couldn’t be further from the truth.

Notice of Assessments, net income after expenses, multiple companies, there’s a lot going on when it comes to getting a mortgage for someone who is self-employed. Proving your self-employed income and its sustainability can be challenging.

You’ve spent all this time building a business, let someone else handle the rest.

Trading Up To Bigger House

There the issue of financing to consider, and selling your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.

Mistake 1: Home wants and your bank account don’t match
Mistake 2: Failing to make necessary improvements
Mistake 3: Not selling first
Mistake 4: Failing to get a pre-approved mortgage
Mistake 5: Failing to coordinate closings

Closing Costs To Consider​

There are many costs on top of the purchase price that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared.

Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it’s better to know about them ahead of time so you can budget properly.

Appraisal fee
property taxes
survey fee
property insurance
service charges
legal fees
mortgage loan insurance fee
mortgage brokers fee, moving costs, maintenance fees
water quality and quality certification
local improvements
land transfer tax

Mistakes To Avoid

1. Choose the first one to save time. The biggest mistake that people make when purchasing a mortgage is not shopping around for the best mortgage rate. Many people make the mistake of simply accepting the first mortgage offer they receive from their bank or mortgage lender, without exploring other options. While this may seem like the easiest option, it can be a costly mistake in the long run.

2. Forget about long-term implications. Another common mistake when shopping for a mortgage is not considering the long-term implications of the mortgage product you choose. Many people focus solely on the interest rate when choosing a mortgage product, without considering the other terms and conditions of the mortgage.

3. Don’t understand the terms. Another mistake that people make when purchasing a mortgage is not understanding the terms of the mortgage contract. It is crucial to read and understand the terms of the mortgage contract before signing it. Make sure that you understand the interest rate, payment schedule, and other fees that may be associated with the mortgage. It is important to understand the consequences of missing payments or defaulting on the mortgage. Failure to understand the terms of your mortgage contract can lead to serious financial consequences down the road.