| 1. Get Pre-Approved
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Pre-approval is easy and can give you peace of mind when shopping for your home.
Pre-approval is more than a verbal approval. It is a written pre-approval and is as good as money in the bank. All you have to do is make an application for a loan and provide documentation of your income and savings. Your loan consultant will perform a credit check and may even assist you in addressing credit information. Once the above steps are done, you will receive a certificate guaranteeing you a mortgage! |
| 2. Know your monthly dollar amount |
When you discuss the mortgage pre-approval with your loan consultant, find out what level you qualify for and also asses for yourself what monthly dollar amount you feel comfortable committing to. Working with your loan consultant/lending institution in determining what your monthly amount will be and what value of home this translates into at today's rate, will save you time because you will be looking at homes that are in your price range...your comfort level. |
| 3. Type of Mortgage |
There are a number of questions you should ask yourself. The answer to these questions will help you determine the most appropriate mortgage for you.
How long do you think you will live in this home?
What direction are the interest rates going and how quickly?
Is your income expected to change? Up or Down and what impact would this have? |
| 4. Pre-payment Privileges and Payment Frequency Options |
More frequent payments, biweekly for example, can shave years off your mortgage. Structuring your payments more frequently will lessen the amount of interest you will pay over time and will increase the amount of equity you will build up.
Authorized pre-payment of a certain percentage or an increase in the amount you pay monthly, could shorten your payment term.
Ask your loan consultant to show you the impact of either of these options. |
| 5. Assumable or Portable Mortgage |
A portable mortgage is one that you can carry with you when you buy your next home.
An assumable mortgage is one that the buyer for your home can take over when you move to your next home.
These options have not been common lately and they are worth discussing with you loan consultant. |
| 6. Loan consultant |
Consider working only with a professional loan consultant who specializes in mortgages. They can make the process go faster and help you avoid costly delays. There is no cost or obligation to inquire. If you do not have a professional loan consultant, call or email me for recommendations. |