The right mortgage team

f 2020 has taught me anything, it has taught me the value of relationships.

This year has reinforced the importance of having the right people in my corner, both personally and professionally.

I’ve written about the value of having the right people on your team while you are going through the process of buying a home.

Over the last few weeks, I’ve had a few reminders as to the importance of working with the right people, and how having the right team on your side can mean the difference between getting the home you love and potentially missing out.

The key people you need to work with include:

• Mortgage professional
• Realtor
• Legal representative (lawyer or notary)
• Home inspector
• Insurance representative (home and personal)

Before you venture out looking, the first thing I suggest you do is connect with a mortgage professional to make sure you qualify to buy a home. After you have completed an application and your mortgage person has reviewed your information, you will know if you are ready to start shopping or if there is work to be done first.

Once you are pre-qualified and know that you have your ducks in a row, its important to choose a realtor to work with. I encourage all of my clients to work with a realtor.

As you build a relationship, your realtor will learn what is important to you in a new home and can work hard to find the home you are looking for.

Realtors (actually all the professionals involved in the home buying process) put in a great deal of work behind the scenes that you may not know about.

Skilled realtors can mean the difference in being the successful purchaser in a hot market. They can make strategic recommendations to help strengthen your offer, so that sellers choose your offer over competing offers that come in.

Your next stop is choosing your legal representative. You can use either a lawyer or a notary.

Often clients ask me who’s the cheapest. From my perspective, price should not be the deciding factor. Work with someone who comes highly recommended and who practices real estate law regularly. 

Once you’ve written an offer and it looks like your financing is moving forward, you will arrange a home inspection. Again, home inspectors are not all created equal.

Take a few minutes to read reviews from previous clients and talk to your realtor to see who they recommend.

A home inspector will spend hours going through your new home and point out any areas of concern that need to be addressed. Missing something key by scrimping here could cost you time and headaches down the road.

Finally, you will need to line up insurance coverage. There are three types of insurance discussed during the home buying process.

First, if you are putting down less than twenty per cent for your down payment, default insurance is added to your mortgage. This is a one-time up-front cost and is calculated on a sliding scale, based on the dollar value of your mortgage and the percentage you put down.

Second, you will need coverage for your new home. You purchase this insurance through your local insurance broker or companies like BCAA.

When you do your final signing at the lawyer/notary you will need to show that you have home insurance in place. This protects both you and your mortgage lender in the event that something happens (fire, theft, natural disaster, etc.) to your home.

Third, and sometimes uncomfortable to discuss, is personal insurance coverage. As mortgage professionals we need to offer our clients personal life and disability coverage.

This coverage is optional to take, but important to discuss. Personal coverage is generally paid on a monthly basis and covers your mortgage if you are hurt or killed.

That feels pretty sombre. In the flurry and excitement of buying a new home, insurance coverage isn’t a fun thing to discuss but it is a very important conversation to have.

Finally, having the members of your team connected and working together is as important as having the right people on your team.

As I wrap up my final column for 2020, I would like to thank you for taking the time to read my musings over the year, and for reaching out to share your thoughts.

Wishing you and yours a happy, healthy 2021 filled with much love and laughter!

Tracy

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.