With the Interest Rate increase last week, I’ve had so many people ask me about the mortgage process. While it plays a vital role in homeownership, and I know a fair bit, I’m not a Mortgage Agent/Broker. Here are a couple tips to help make the mortgage process easier.
Compare Amortization & Downpayment amounts: Research and compare with the mortgage calculator to figure out how much you are willing to put down, and what the approximate mortgage rate will be based on the amortization length. Other factors to consider include interest rates, fees (such as mortgage insurance), customer service, and reputation.
Not sure which way you want to go? Research mortgage options. Familiarize yourself with various mortgage types, such as fixed-rate and variable-rate mortgages. Understand the pros and cons of each option, and determine which one aligns with your financial goals.
Get pre-approved: Before house hunting, get pre-approved for a mortgage. This involves providing financial information to a Mortgage Agent/Broker who will assess your creditworthiness, and be able to shop around to get you pre-approved for a specific mortgage amount. Pre-approval strengthens your position as a serious homebuyer and helps you set realistic expectations.
Gathering multiple quotes will help you make an informed decision.
Not sure of your next steps? Give me a call to get you referred to a Mortgage Agent or Broker to get started.