There’s a brief moment of bliss between choosing to purchase a new home and the moment you realize all the steps that are required to get the keys. There’s no way to sugarcoat it - getting a mortgage requires some time and effort, although it doesn’t have to be complicated.
When we first hear from new clients looking for a mortgage, we ask questions. We dig deeper to make sure we can find the right fit. This works on our end, but today I thought we’d remove some of the stress of finding a mortgage through a little knowledge and a lot of empowerment.
You’ve got the power to guide the process, you just need to ask the right questions.
1. Should I Hire a Mortgage Broker or a Bank?
Sometimes people accuse us of being anti-bank, and that’s simply not true. The reality is that the bank works just fine for many people.
For those turned away by the bank, however, there are still options.
Even if you do qualify at the bank, it’s valuable to compare the rates a bank can give you with those you can get through a broker.
A mortgage broker might also be better suited to answer further financial questions such as:
- What length of term is best for me?
- How long do I want to sign for - 3 years? 4 years? 5?
- What’s the difference between fixed rates and variable?
In order to answer the ultimate question, you’ll need to ask plenty of smaller ones until you get a feel for the best fit.
2. What Do I Want to Buy?
Chances are you’ve imagined yourself in your new home at some point during the process. Well, what does that home look like? Is it a house in the suburbs? A downtown condo? Or a cozy townhouse close to work?
The reason we encourage people to keep the end goal in mind is it keeps you focused. It’s easier to find the answers to your questions when you know exactly how those answers will affect you. It’s not a complicated process, or at least it doesn’t have to be, but there’s no question that hunting for a mortgage will occupy your thoughts until you unpack the boxes in your new home.
3. What Will My Payments Look Like?
No matter what your situation is, it’s crucial to reconcile your payments with what you want to buy. Start at the end and work your way back.
Six months into your mortgage when everything has calmed down, what will you be able to afford comfortably? What works for you and your family? Buying a home is about freedom - the freedom to put money into something that’s truly yours and the freedom to enjoy it however you like.
If you bite off more than you can chew, that freedom can turn into a trap pretty quick.
Determine an appropriate payment, ask yourself what your life will look like in your new home, and then take care of all the details.
Oh, and buy the way, we’ve got answers if you’re looking. Drop us a line!