Mortgage Tips for those who prefer pain free mortgage experience.
You’ve paid off your debts, saved up the funds for a nice down payment, and hiked around until you’ve found the perfect place. Your offer has been accepted (yay!) and you have a period of two months to close the deal.
Experienced Mortgage Brokers often label this time as when many first-time buyers finally get around to mortgage arrangements.
There is some good news: mortgage competition is so tight right now that you can surely negotiate better terms on mortgage fees, rates and most restrictions – provided you talk to the right people and learn a lot about the business. Mortgage rates are not quite at an all-time low, but they are historically very attractive and easier to compare online.
Just keep this in mind: rates posted at your bank or flashed at you in online ads are just the tip. Not only are these rates high, they are also likely to come filled with warning pits, including your favourite (not!) – Tight restrictions. That is why they are called sucker rates!
TOP 3 Mortgage Tips!
- Start early and be prepared
Your local bank will be more than willing to do a basic mortgage pre-approval document, but that surely won’t be enough for you. You’ll need an updated personal credit score, tax assessments from the previous two years, and thorough documentation of your income (Non-salaried contracts/debt included).In addition to your down payment, you’ll need enough cash on hand to cover pay closing costs – for legal fees, mortgage insurance, title insurance and land transfer taxes. Be prepared to pay utility deposits in your new home.
- Have a strategy in place and a product in mind to achieve it
This is where a mortgage broker can really help you. Be sure to familiarize yourself with mortgage basics – read up on how a fixed–rate mortgage compares to a variable-rate, and the differences between closed/open mortgages. Don’t forget to research the various terms that are available.This is would be a good point to consider how relevant features such as pre-payment options and break fees are to you. Let’s say you encounter large sums of cash, you should consider a flexible mortgage that doesn’t restrict you from making lump-sum payments.
- Think about what will work best for you
Starting a family? In line for promotion that involves residential relocation? You may be upgrading sooner than you think. Unexpected circumstances like a family illness or divorce may also result in a hefty break fee. Always expect the unexpected!There are an abundance of mortgage calculators around, including my custom MDG App (Available on iOS and Android ) that can help you determine what you can afford and over what time period.
Your mortgage is bigger than you think. It is a crucial factor when determining your net worth. Yes, there is a lot at stake, but remember one thing – you can save thousands of dollars in interest alone.
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