Getting your dream home financed in Grande Prairie?
Ready to build the home of your dreams & get your dream home financed in Grande Prairie? Here’s how to make the process smooth with your mortgage broker. Hopefully reading this article, along with tips from our mortgage brokers here at DLC in Grande Prairie, we can get your home mortgaged smoothly for you!
First, go get a pre-qualification
First step, go get a pre-qualification with your mortgage broker. To do this visit one of our qualified mortgage brokers at Dominion Lending Centres HT Mortgage Group.
Come prepared with:
- Letter of employment and current pay stubs
- Last two years of T4’s and Notice of Assessments
- 3 months banks statements confirming down payment verification
- Floor plan and building specifications, along with your contract from your New Home Warranty Builder
- If self-employed, we’ll also need your last two years of company financials, and your last 2 years of T1 Generals
A pre-approval will give you an idea of what your total build budget will be, and ensure that your new home matches your wish list. Remember this is all to get your dream home financed in Grande Prairie.
“Getting a Pre-Approval is super important!” Kaitlyn Moore – Mortgage Broker
Plan your build
Now that your pre-qualified to build a new home, it’s time to investigate who will build your home for you. We are lucky enough to have several local home builders with loads of experience, all that carry new home warranty. Many of these builders will help you to purchase the town lot you’d like to build on as well. Or perhaps you already own an acreage with an older mobile home and you’d like to build a new house on the property? Last, maybe it’s your dream to be out of town, and the goal is to buy and build on bare land. We’ve got a mortgage for all 3 options to get that dream home financed in Grande Prairie!
“Make sure your builder is NHW registered.”Gert Martens, Mortgage Broker
Don’t go with the first builder you speak to, or the cheapest builder! Do your research, whoever is building your home will impact your life for many years to come! Jodi Scotton, Mortgage Broker
Here are some of the details that will need to be hammered out before you visit your mortgage broker again:
- Where is your home going to be built and what is the address and legal land description of this location
- Do you have your house plans complete
- What type of finishing are going into your new home and does your builder’s contact include all of these things
- Timeline about when the builder expects to start and finish the build
- New Home Warranty registration number
“Get Quotes for Utilities! You can mortgage the cost of utilities, such as putting in a well, or getting a powerline out to your acreage, but you need quotes to ensure this will be included in your financing. Utility hook-ups can cost a lot, so it’s important to plan them into your build.”Doria Zacharia, Mortgage Broker
“Be really specific about what type of finishes you expect your home to have, so that the original contract matches your expectations and prevents cost overruns over time.” Megan Lemay, Mortgage Broker
You may wonder, if I’ve already gotten a pre-approval, why do I still need a financing condition on my purchase contract?
A mortgage lender needs to confirm they are comfortable with the home your building, along with the cost of this construction. To do this they have an independent appraiser review your purchase contract, plans and location. The appraiser confirm that the market value of your home, is greater than, or equal to , the cost of this construction at completion. If a home is too custom, it’s market value may be less than the cost of your build and the lender may make you do a larger down payment. The lender also wants another chance to double check your down payment and ensure you have enough assets to get a build done.
Dream home financed in Grande Prairie – You’ve done it!
Congrats! Now that your build has been approved, your lender will advance the draw money directly to your lawyer, who will then pay your builder along the way. You are that much closer to having that dream home financed in Grande Prairie. You won’t make mortgage loan payment until your home is 100% complete. Be sure not to make any changes to your financial situation between starting your build, and your move in date.
“Be aware of your current debts and don’t apply for any credit until the build is done” Alycia Larocque
There a million different scenarios we could discuss when it comes to building a home. For example: How is the building process different when I buy a pre-built manufactured home, is this the same process as getting a local builder to construct my home on site?
To make a plan for your specific building situation, give us a call here at DLC HT Mortgage group today!
Updated March 14th, 2009