Getting Approved For A Mortgage Home Loan

Buying a first home is one of the most important milestones in anyone's life, but that milestone brings with it a new reality one that consists of a mortgage that needs to be approved, signed, and paid for over the next several years. And at some point in time, men and women decide they have found the ideal place to put down roots and to stop lining the pockets of their rental landlords. This is one of the biggest steps and one of the largest financial commitments they will make and it is normal to feel a bit of apprehension. That is why we are here to lend a helping hand and help you through the process of home ownership. With us, you can rest knowing that we are here for you and that you are free to call and voice any or all of your concerns that you may have and once we you do we can look at putting your concerns to rest, by discussing your issues with us — they will seem much less intimidating.

What Percentage Down Payment To Make?

The most mortgages require a down payment of some sort  But there are a few zero down options, and we can help you to explore them— the most common down payment is at least ten percent on your property's asking price.

One of the most important things you need to remember is that a larger down payment will result in more money saved in the long run as it reduces the amount of finance charges that you are required to pay. Another advantage of making a larger down payment of twenty percent or higher is that you will not be required to pay for mortgage insurance with the Canadian Mortgage and Housing Corporation (CMHC).  The current rate at this time for CMHC insurance is two and one-half percent of the purchase price and this is added to the total cost of your mortgage.  In essence, the more money you can pay down on your home, the more money you will be able to save.

The Mortgage Type And Interest Rates

You will want to shop around for a mortgage just as you would for any other major purchase. It’s highly unlikely you bought your last vehicle from the first place you visited. It is also imperative that you understand what type of mortgage you are looking at and that you always read the entire contract— especially the fine print. This will help you avoid making a large financial mistake.

To get started, you will want to take a look at all of the different types of mortgages, the terms, and all of the interest rates.  If you are a person who is good at budgeting and prefers a consistent monthly payment, a fixed rate mortgage is the right choice. If interest rates are at a favorable level, and you possess the budget that can deal with a different payment amount on a monthly basis, then a variable rate mortgage is the right choice for you. You will also need to learn about amortization terms and the effect those can have on interest rates.  We can help you to find all of the right answers for you.

We also cannot stress enough how important it is to make as large a down payment as you can reasonably afford. This may require you to trim the budget for other items for awhile, but you will save greatly in interest fees and your home will be paid off much more quickly. You can always splurge when you finish paying off your mortgage.

Buying At The Right Time

Often, as it is in many businesses, timing is critical in buying a home. You can get the best possible deal by doing a bit of shopping around for a mortgage. Investigate mortgage brokers and banks to find the very best possible rate. The majority of banks and mortgage brokers will honour a rate they have quoted you for a specified time, giving you the time you need to keep looking without sacrificing a deal you have already found.

It is well known that as soon as you drive a new car off of the dealer’s lot, it depreciates. Homes can as well, and this is especially true of a new property. And unlike a vehicle, where you can add things such as a high-end stereo system and it does not really affect the overall value of the car, some improvement on a home such as adding another room can make up for depreciation. A kitchen upgrade, adding another bathroom, and fixing up a basement can all add value to your home as well as make it more comfortable and livable.

When you retain our services as a REALTOR®, we set about to make your home buying experience a pleasant one. We will be there for you from the time you start your housing search until the time comes to hand you the keys to your new home. Contact us and we'll make this journey a smooth one.