The Real Estate and Mortgage Show - May 4
Chris Hoare of the Paul Rushforth team joins Steve and Frank for another information-packed hour on the Real Estate and Mortgage Show.
On this week's Real Estate and Mortgage Show, Chris Hoare fills in for Paul and joins Steve and Frank to talk about the spring market, first-time buyers, credit checks, and the importance of obtaining a mortgage pre-approval.
The spring market is ramping up in Ottawa, bringing many first-time buyers with it. With more information available online, first-timers seem to come armed with a wealth of knowledge when making their first home purchase. However, it still seems to be a common misconception that shopping different lenders for a mortgage will affect your credit score in a negative way, by having multiple inquiries on your credit report. Frank lets listeners know that this is not the case. Credit reporting firms will have a record of where the inquiry is coming from, and it is understood that when shopping for a mortgage, most borrowers will approach more than one lender to obtain the best rate possible. In addition, when using the services of a Mortgage Broker, your credit score is only pulled once, and the lenders that your Broker approaches will use that single inquiry. However, borrowers should still exercise caution when applying for other credit products. Multiple inquiries for unsecured credit (such as credit cards or lines of credit) can affect your score negatively.
Frank also takes some time this week to talk about the importance of a pre-approval. When shopping for a home, it is important to know not only the price range that fits with your budget, but what you will qualify for. Finding that perfect home and then realizing you won't qualify for the mortgage can be extremely disappointing. Obtaining a pre-approval is a fast and easy process - you simply would need to provide proof of income and down-payment. For more information, talk to an Ottawa Mortgage Broker.