Welcome back to our Home Financing Master Class. In the last session where you learnt about home financing options and how to save for them, we will provide you with a deeper insight on what is the process of financing. Hi, this is Mujtaba Syed. I am a Mortgage Specialist.

Here is what you will learn from this course:

✅  Learn the difference between lenders and borrowers

✅  Learn how to choose the right lender

✅  Importance of Mortgage Pre-Approval

✅  Learn the difference between Pre-Approval and Approval

✅  Explore your options for approval

✅  What is the mortgage stress test and how it helps in bad credit situations

✅  Find out different mortgage options and steps to take when an application is declined

 

Session 2: Introduction To Mortgages

In the upcoming session here you will be able to differentiate between mortgage and a rental. A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank), wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

 

Difference Between A Mortgage Specialist And A Mortgage Lender

To understand mortgages you must be aware of two terms: Mortgage Specialist and Mortgage Broker. These two individuals are very unique in their practices and how they can assist you in your mortgage plan. However, in spite of having pros as well as cons it entirely depends on your mortgage requirements before you decide which one to choose. The following lesson will help you differentiate them

 

 

How To Choose The Right Lender?

It entirely depends on your scenario to determine which lender is perfect for you. As you learn the differences between lenders, it will be much easier to choose one. Let’s see how Mujtaba can help you make a sound decision.

 

Session 3: Mortgage Approval

Mortgage Pre-Approval

Now let’s assume you have made up your mind which means you will get a mortgage soon. In this session, you will get to know about Mortgage Pre-Approval. This approval is essential for you to know what type of house you can have and it carries its own benefits. What if you are able to get a hold of this pre-approval? Mujtaba will answer some of the crucial questions to help you understand their importance.

Mortgage Pre-Approval vs Approval

In the previous session, you were searching for a home on the assumptions of your affordability. However, it restricts you on many grounds especially insurance companies as they can only approve once you have a real house in place. Now that you have searched your house, you will need a Mortgage Approval. In the next video, you will be able to distinguish between a Mortgage Pre-Approval and a Mortgage Approval.

How Much Can You Get Approved For

Well after all the considerations the most important threshold is whether you are going to get your dream home or not? Again, it is not something to worry about but rather to know the math of how you can change this negative to an affirmative. To make it easy for you, Mujtaba has done the math and in the upcoming video, you will be enlightened about how crucial a Mortgage Pre-Approval can be.

The Mortgage Stress Test

What happens if, after all the judgments you made, the future holds something completely unpredictable. What if you are unable to pay for the mortgage? You have to be prepared and more than you the Government of Canada has to be. If many individuals are unable to pay back their mortgage then it would bring a drastic decline in the economy and home prices. To avoid such a situation, the Government of Canada has introduced The Mortgage Stress Test.

Getting Approved With Bad Credit

So in this lesson, you will learn how you can get approved with bad credit. In Canada, the minimum credit score to get an approval is 600 but what if your credit score is lower than that? Does this mean you are unable to get a mortgage loan? Well, technically yes but with Mujtaba, you have nothing to worry about. All the solutions to your low credit score are in the upcoming video.

What is a credit score?

In simple words, it is your character reflected numerically. However, there are multiple factors that are taken into consideration before deciding that and to shine some light on this topic let us move on to our next class.

What is a mortgage cosigner?

A cosigner is someone who takes responsibility for the loan by being added to the mortgage application and other loan documents, but who doesn't get any rights to the property. A cosigner must meet certain criteria in order to help qualify for this position. Well, why would someone do that or who they can be? For the answers, tune in to our next session.

Insured vs conventional mortgage

In this module, you will be able to identify the difference between insured and conventional mortgages. After this lesson, you will know what the benefits and drawbacks are of these mortgage types and which one you could qualify for.

What happens if your mortgage application is denied?

After all the efforts you made, the bank refused your mortgage application. However, there is nothing to panic about. This is not a death sentence that cannot be reversed. All we need to do is find the reasons why it got rejected and what are the chances that you can reapply for another mortgage and pass. We will now let Mujtaba prepare you for the unseen.

WRAPPING UP

We hope it is getting excited for you. Stay tuned for the upcoming session where you control your own Mortgage Payments and choose wisely what rates you have at your disposal and how easy it is to choose from them. You are very close to getting your dream home!