The Mortgage Discovery Call: If Your Bank or Broker Skips This Step, Just Run.
In a click-happy world, it's tempting rely on an Internet search for mortgage advice. And while you can certainly glean a ton of good information (hey, you're here, aren't you?), there's one thing that no computer screen can do: get personal.
This is what a Discovery Call is for, and you should insist on having one, before you fill out a mortgage application. This is true whether you're dealing with your own bank or a licensed mortgage broker. (No matter how experienced they are.)
When done right, the Mortgage Discovery Call lays the foundation for the entire mortgage approval process. It only takes about half an hour and can be done in person--though this is less common--or on the phone. Questions you should be asked include:
How long do you plan to stay in the same home?
What is your tolerance for changing mortgage payments?
Do you have any dependents? Might you have down the road?
Do you own or have you owned other properties?
Are you self employed or conventionally employed? Where? For how long?
What is your understanding of fixed versus variable rate mortgages?
Have there been any credit challenges in the past? Do you have credit?
What is your current equity situation (if refinancing)?
What is your down payment savings and where is it (if purchasing)?
This list is just a sampling of what a mortgage professional needs to know about your finances before they can adequately evaluate your application.
While it's tempting to punch out an online mortgage application and hope for the best, that is the worst way to tee up one the biggest financial obligation of your life. Make sure the person helping you is dedicated to doing the right things in the right order, before you sign on the dotted line.
Request a conversation first, mortgage application second.
Comments