Before you go shopping for a house it’s important to get pre-approved for the right mortgage. Today I’m gonna be talking to Scott Grubbe of Kardia Mortgages about, how to do that.
Pete: Hey Scott. Scott, you’ve been a mortgage broker for how long?
Scott: I’ve been a mortgage broker for six years and I worked at a major bank for five years before that. But in the mortgage world for eleven years.
Pete: Okay. Why the switch from being at a bank to being a mortgage specialist or a mortgage broker?
Scott: Well, when you go directly to the bank for a mortgage, you’re dealing with somebody that’s employed by that bank, that’s selling that one brand and one banks products.
Scott: As a broker, I’ve access to lots of different lenders. So, I can look at lots of different mortgage products and that’s on the qualifying side as well as the product and rate side. I’m also licensed by the real estate Council of Alberta to give advice on mortgages.
Scott: So, I really enjoy shining a light on those important parts the fine print in the mortgages and helping people understand what they’re getting into.
Pete: Right, okay awesome. Basically, when you’re working for the bank, you’re working on their behalf. But as a mortgage broker you’re working on the client’s behalf, you’re looking out for them and for their best interest. Is that fair enough?
Scott: Yep, so I get to educate them and basically help them shop their mortgage around.
Pete: Okay awesome. You sometimes get better rates that way too then, then you would through a bank?
Scott: I do, so the mortgage broker channel gives me access to mono lines. Mono lines or banks, mono meaning one.
Scott: Banks at one line of products just mortgages.
Scott: So, we don’t worry about RSPS or checking accounts and things like that which allows them to do better mortgage products.
Scott: So, often that means that, the rates are better and the features are better as well.
Pete: Yeah, okay awesome. So, when I send a client to you if someone says, I want to buy a house and I say, okay, the first step is let’s get you pre-approved, so that not only do we know that we’re not gonna have an issue once the offers been written. But also, we’re gonna have a clear idea as to how much it’s gonna cost in terms of interest rates and what your payment is going to be in that kind of thing. When I send them to you or if they go to you on their own, what should they expect to do?
Scott: So, the first thing I like to do is set up a discovery call. That’s a quick 15-20-minute phone call chat about, where you’re at and where you’re trying to get to.
Scott: It can give me an idea of what kind of mortgage you would qualify for what product might be a good match. It can also give you an idea of how much mortgage you qualify for and what kind of price point will be shopping out. That’s the first step and then the second and third step of a pre-approval is to check your credit and collect the supporting paperwork.
Scott: So, once we’ve got that all done, we’ve got you set up. The pre-approval is a bit of a dress rehearsal for the final when you’ve ran off from a place.
Scott: You’ve got an idea of what you’re going through. We’ve got you pre-approved we’ve got you set up with a maximum purchase price, so you have an idea of what your monthly payment will be and what kind of house you give by.
Pete: Then we can built-in shop with confidence.
Pete: Where do you, because I’m sure you get asked this every day probably twice a day. But where do you expect rates to be going sort of in the next 6 months or the next year?
Scott: So, rates right now, the rates are falling. The Bank of Canada cut the overnight lending rate, which means the banks will be cutting the prime rate by half a point.
Pete: That’s substantial.
Scott: Pretty big drop.
Scott: So, variable rates will be going down half a point, home equity lines of credit will be going down half a point. So, the variable rates are going down this week.
Scott: The fixed rates have been falling as well and coronavirus in the news affecting the economy everywhere.
Scott: The fixed rates are dropping as well.
Pete: Right. So, probably a good time to be looking for a mortgage really.
Scott: It is, it’s really cheap money and it makes your overall purchase too.
Pete: Okay, awesome. Scott thanks for your time.
To get a hold of Scott call 587-433-8329 or find him at http://scottgrubbe.com/