Congratulations you have you found the home of your dreams and now you’re ready to put in an offer. If you have been pre-approved for a mortgage, you can show the seller that you are a serious contender to purchase the home for sale and your offer will have a strong chance to be accepted. But what if you haven’t been pre-approved yet?
It’s no secret that the housing market in Brampton and the GTA is hot and its very likely that other potential buyers who have been pre-approved are already putting in offers. Homes for sale can often end up in bidding wars and go over asking by as much as $100k to $200k or more. Acting fast will give you an advantage but you will need to have your mortgage financing arranged beforehand. If you go into a offer without having your mortgage financing arranged there is a strong chance of your offer not being accepted and losing out on the home for sale. Far too many people have come across this particular scenario, they put in an offer without having their mortgage financing arranged and they end up losing out on the home for sale.
The key to an offer on a home being accepted by the seller is to have your mortgage financing firmed up as quick as you can. You want to be able to a mortgage quickly enough to compete for this home, over other offer from buyers.
You can try to go with a traditional mortgage, from traditional lenders like banks and credit unions buy they have very strict regulations that they must follow when approving borrowers. Realistically means, it will take some a few days to weeks before you can get an approval. These types of mortgage lender are not the best option if you are looking for a quick mortgage approval on a home you want to put an offer on the same day. If you need to get a mortgage approval in Brampton as soon as the same day, then it could be in your best interest to go with a private mortgage.
However, if you are unsure if a Private Mortgage is right for you, then keep on reading this brief and informative article that our team at Brampton Mortgage Brokerhas put together for you. Our team is always here to help your mortgage situation and we will make sure we can help you get the most out of your mortgage financing, just make sure to reach out and connect with a member of our team. Now let’s
get right into the article.
What is a Private Mortgage?
Simply put, a private mortgage is a home loan that is offered by a private lender (either an individual or a company) instead of a traditional lender such as a bank. There are however some key differences between a private mortgage and a traditional mortgage.
Private lenders are not required to use the same strict criteria as traditional lenders which means you can usually get your mortgage approval much more quickly. It also means that this is a better route for those who may have trouble borrowing from other institutions – such as those with bad credit, or those who are self-employed.
It is important to note though that private mortgages are usually considered riskier investments for the lender which means you’ll likely have to pay a higher interest rate than you would for a traditional mortgage. This may be a small price to pay though if it means you can get into the home of your dreams.
You should also note that most private mortgages are mostly structured as short-term loans. A typical private mortgage could have a term or anywhere between six months and one to two or even three years. So, if you have fairly good credit but you need a mortgage quickly, you may want to consider getting a short-term private mortgage and then applying for a traditional mortgage near the end of your private mortgage term.
Is it Better to Wait Until I Can Qualify for a Traditional Mortgage?
Ultimately, that is up to you however there are a few reasons why you might not want to wait. For starters, if you have found a home that you love and that you can afford to make the payments on, you may want to jump into a private mortgage so that you can make an offer. It is not everyday that the perfect home comes along and acting fast will make the difference in having your offer being accepted by the seller for the home of your dreams.
Another reason for not waiting is that you can always refinance your private mortgage when the term is up and move to a traditional mortgage lender like the bank or a credit union. So, if your credit or income is not up to the level of a traditional lender then you can some time to make sure you are able to work on it. The best way to look at a private mortgage is to see it as a steppingstone for your mortgage financing. The short-term financing option that a private mortgage provides can help you win the home of your dreams now and allow you to refinance your mortgage sooner than you think.
Contact us today
If you are looking to get a mortgage quickly, then call us today to discuss your private mortgage options.
Our team at Brampton Mortgage Broker is always here to help you find the best financing options for
your mortgage and we can help with finding the best private mortgage that will work for your situation.
Just make sure to reach out and connect with a member of our team today to get started.