Mortgage Tips For Home Buyers

home mortgage approvedHow you choose to structure your mortgage can save you thousands of dollars, so it’s important to get the right information before you start shopping for one. Whether it’s your first home or the last home you plan to buy, the details of your financing can ensure you’re not paying more than you need it. Here are a few mortage tips to consider before you plan your next move.

  1. Talk to your lender about being pre-approved before you start looking at homes.  Most will require that you complete a detailed credit application, and will provide a certificate that guarantees that your financing is approved. This can ensure that you are shopping within your price range and that you can make offers quickly so that you don’t miss out on time sensitive opportunities.
  2. Be well aware of your monthly budget so that you know what repayment schedule is going to work for your situation. A mortgate is a long term financial commitment and you want to make sure that your payments are a comfortable portion of your monthly income. As a homeowner you’ll need to budget for maintenance as well as the unexpected, so be sure to look beyond just your mortgage payment when deciding on affordability.
  3. Evaluate your long term goals to make sure you choose the kind of mortgate that suits your needs. You may want to think about how long you plan to own this particular home, the direction of interest rates, and the security of your current income.
  4. Understand the terms of your mortgage so that you know what prepayment priviledges are available. By making payments more frequently (weekly or bi-weekly) you can save a considerable amount of interest and pay off your mortgage sooner. Authorized prepayments of a certain percentage of your mortgage or making additional payments can also lower your interest costs. AS not all mortgage products offer these options, be sure to ask questions.
  5. Know what options are available. If a portable mortgage is available, it means that you can take it with you to purchase your next home, instead of paying discharge penalties on your current mortgage. Unless you’re upgrading to more expensive home, a portable mortgage lets you avoid the hassle of requalifying. Another option is having an assumable mortgage, which means it can be taken over by the person buying your home. This can be a desirable negotiating option when it comes time to sell and can mean no discharging fees.

We strongly recommend talking to a professional who specializes in mortgages because the right mortgage tips can make a significant difference to the cost of your mortgage, and the borrowing process. Our team has significant experience and a strong referral network to make sure you get the best mortgage product for your personal situation. Give us a call and let’s talk!