Getting a Mortgage is Scary, But It Doesn't Need to Be
October 18, 2022 | Posted by: Ron Chan
We're in the thick of the woods of Halloween. Followers of our Winnipeg real estate blog know that we enjoy the season as much as the kids who go trick or treating. We are known to share tips on topics such as whether or not you should buy a haunted house, and our top broker Ron Chan can often be spotted in his ninja costume on All Hallow's Eve (and sometimes on other days).
In the continued spirit of the season, we are taking a moment to address something that we hear from buyers not just in October, but through most of the year. Are you among those who think that getting a mortgage is scary? We're here to let you know that it certainly doesn't have to be. Below are our tips to exorcising the demons that strike fear in the hearts of new buyers.
How to Get Rid of the Ghosts, Goblins, and Fears About Getting a Mortgage
Put Media's Horrific Headlines in Perspective
The media loves to stir the cauldron when it comes to negative news. They strike fear in the hearts of new buyers with reports of increasing interest rates, rising home prices, and decaying inventory. It's almost as if Stephen King is at the helm of each and every editorial desk.
We ask that you take a breather and put all of their so-called real estate news in perspective. Always remember that rising rates and prices are always relative. Have you taken the time to compare them to what they were five, ten, or fifteen years ago? What you'll often uncover, is that you're in a far better position to buy a home than those who did so back then. Further, compare home values to other parts of the country, those where a $400,000 home (in Winnipeg) would be listed for at least a cool million.
Of course, you don't always have the time to read between the lines, nor do you have the time to compare rates and home prices to other periods in time and other places. Fret not, because that's what we're here for. Every month, we release a Winnipeg real estate news update that puts the latest news in perspective for new buyers. Stay tuned right here, and take the power away from the fear-mongering media.
Don't Be Afraid of the Big Bad Banks (and Rejection)
It ain't just the media that incites fear in the hearts of new buyers. Canada's big banking institutions, with their concrete columns and stern looking loan officers are a big part of what keeps new buyers on the fence. If you have an hiccups or missteps in your credit history, you assume that you will get turned away. If you have inconsistent income as a self-employed person, you assume the same. In either scenario (and many more) you simply don't bother to inquire about getting approved for a mortgage due to fear of rejection.
The thing is, is that even if your fear of rejection (due to limited credit history or inconsistent income, etc.) is legitimate, you may absolutely have other options. There are alternative private lenders who look at other aspects of your profile, and do not place as much weight on credit history and/or income consistency. Further, these alternative private lenders may be able to offer home loans at better rates that what the big scary banks do. All we're saying, is that you have more options for getting a home loan than you initially assumed. Take the fear-inducing power away from the big banks too, but learning more about how to find alternative lenders.
Partner With a Comforting Mortgage Broker
Being alone is scary for a lot of people. Being alone when committing to an investment that will have you owning hundreds of thousands of dollars is exponentially scarier.
You don't need to be alone.
By connecting with a mortgage broker, you gain a knowledgable, helpful, and considerate partner throughout the home buying process. The right broker will be there with you from initial mortgage calculations and pre-approval through to lender negations and closing contracts. The right broker will be there to answer all questions honestly and work with you to find a mortgage solution that considers your unique needs. You needn't be uncomfortable or nervous about anything - an experienced broker has seen and heard it all. There's nothing they can't put your mind at ease about. Find out for yourself (Winnipeg residents) by contacting Ron Chan today at 204.290.9950. Ron Chan (the Mortgage Ninja!) will be at your side and make getting mortgage exciting, not scary.