Buying a home is a significant decision. And although taking out a mortgage to finance your home purchase is generally considered “smart” debt, you need to carefully assess the options you have available.
One common mistake many homebuyers make is not shopping around for mortgage products. Usually, the first and easiest solution is to simply get a quote from your incumbent financial institution and go with it. However, with so many mortgage product providers to choose from, you never know where the best deal will come from. If we can shop around for a good deal on a car or everyday products we use, why wouldn’t we explore the different mortgage options available on the market?
Especially if you are a first-time buyer, educating yourself about different mortgage options and the approval process is crucial in making the home purchasing journey smooth sailing.
When it comes to mortgages, interest rates are not the only factor to consider. Also, remember about different terms, penalties, prepayment options, fees, etc.
My team and I will provide an extensive list of mortgage options, explain each in detail, and help you make the best mortgage choice based on your home ownership goals. We also work closely with your real estate agent and lawyer to ensure everything goes smoothly.
Your lender will typically hold your pre-approval interest rates for a certain number of days, typically between 90 and 120 days. Ideally, you’d want to close on a home before this holding period ends.
Important!
Never start looking at homes (or, even worse, make an offer) before getting pre-approved for a mortgage. Until you have a concrete number on paper, you won’t know for sure what types of homes you can truly afford. Consult in detail with your real estate agent about the areas and types of homes you can afford based on what you get approved for before actually going home shopping. Going into homes should be one of the last steps in the home purchase process.