The #1 comment I get is -- I just want a simple mortgage !
Mortgages are far from simple mainly due to each mortgage being different because everyone has different circumstances. It is a big loan for a home, and Financial Institutions want to know they will get their money back. They are not interested in owning your home if a default should happen. It is more headaches for them.
1. So What Should You Do If You Want To Buy
Get your financial information in order.
- Make sure you have pay stubs, T4's, Assessment papers from your income tax
- Know what your savings are
- Got RRSP's - you may be able to use them for your down payment
- Know what you owe in credit cards, car payments, personal loans
2. Make an Appointment With a Mortgage Professional
A Mortgage Professional will help you get the needed information on financing a home for your circumstance. They cannot give you accurate advise without the accurate financial information. That is the main reason, they pull a credit score right away. It gives them the information needed on who you owe and how you have managed your credit in the past.
3.Your Credit and The Mortgage Professional Services
A home is a big investment. You will spend at least 15-25 years paying for your home. To predict if you are a good risk the Financial Institutions look at your ability to pay now and in the future, also by looking at your past in relation to your credit score and how you managed past credit.
Most people have had a rocky period when it comes to their past credit, due to unpaid cell phones, divorces, job loss, etc. That is just part of what happens in Life. The Financial Institutions understand that. That is why once you have had a hardship, you are able to build up your credit score once again.
Most clients I ask about their credit score, don't know what it is or how it applies to them. It is a huge mystery to most people. That is why it is so important to work with a mortgage professional, so they can guide you. If you go to a Bank, the conversation is yes or no. The mortgage professional on the other hand will advise you on what to do next. What can you do to get your home? A mortgage professional will let you know. The job of a mortgage professional in simple terms is to find you the best mortgage and to secure financing for your home.
4. What is Involved In Financing
-income -the ability to pay a monthly mortgage
-paperwork from the past 2 years-- Notice of Assessments, T4's, a record of savings or where the down payment will come from, bank statements, letter from your employer, credit report from your mortgage professional
-good credit score
5. Why Does It Say 5 Year Term/ 25 Year Amortization?
Is my mortgage paid off in 5 or 25 years?
A mortgage is usually long term so the correct answer would be 25 years. Because, the mortgage is so long in a time period, you have the ability to break it down into shorter terms to reflect the newer interest rates and the new options that have been put into place. A 5 year term is the most common term in a closed fixed mortgage.
Is That good?
It is nether good or bad. For right now the interest rates are low, when you renew in 5 years from now chances are you will be renewing at a higher interest rate. Although if you have had a mortgage previously and your mortgage is now coming due, you would be getting a lower interest rate then what you had previously. It is all about timing that no one can control.
For options that usually is better for you. We now have more liberal prepayment clauses then we did 5 years ago. It is always a good idea to talk to your mortgage professional about 3-6 months before your mortgage needs to be renewed. They will watch the market for you to time a better deal for renewing.
How Much Does A Mortgage Professional Cost?
The services of a mortgage professional is free. The financial institutions pay the mortgage professional when a mortgage is secured. So unless you have an extreme case, you will not pay for any of these great services. The mortgage professional will disclose to you at the start if they require payment for securing a mortgage for you.
When Buying a Home What Do I Pay For?
-Closing Costs-- lawyers, property transfer tax, home inspections
If needed-- home appraisal, well inspections, septic inspections
For closing cost a budget of 1.5% of the purchase price is usually enough to cover this expense.
Of course, if you should have a specific question please email or call me.
akroemer@mortgagegroup.com
1.250.650.4182
Mortgages are far from simple mainly due to each mortgage being different because everyone has different circumstances. It is a big loan for a home, and Financial Institutions want to know they will get their money back. They are not interested in owning your home if a default should happen. It is more headaches for them.
1. So What Should You Do If You Want To Buy
Get your financial information in order.
- Make sure you have pay stubs, T4's, Assessment papers from your income tax
- Know what your savings are
- Got RRSP's - you may be able to use them for your down payment
- Know what you owe in credit cards, car payments, personal loans
2. Make an Appointment With a Mortgage Professional
A Mortgage Professional will help you get the needed information on financing a home for your circumstance. They cannot give you accurate advise without the accurate financial information. That is the main reason, they pull a credit score right away. It gives them the information needed on who you owe and how you have managed your credit in the past.
3.Your Credit and The Mortgage Professional Services
A home is a big investment. You will spend at least 15-25 years paying for your home. To predict if you are a good risk the Financial Institutions look at your ability to pay now and in the future, also by looking at your past in relation to your credit score and how you managed past credit.
Most people have had a rocky period when it comes to their past credit, due to unpaid cell phones, divorces, job loss, etc. That is just part of what happens in Life. The Financial Institutions understand that. That is why once you have had a hardship, you are able to build up your credit score once again.
Most clients I ask about their credit score, don't know what it is or how it applies to them. It is a huge mystery to most people. That is why it is so important to work with a mortgage professional, so they can guide you. If you go to a Bank, the conversation is yes or no. The mortgage professional on the other hand will advise you on what to do next. What can you do to get your home? A mortgage professional will let you know. The job of a mortgage professional in simple terms is to find you the best mortgage and to secure financing for your home.
4. What is Involved In Financing
-income -the ability to pay a monthly mortgage
-paperwork from the past 2 years-- Notice of Assessments, T4's, a record of savings or where the down payment will come from, bank statements, letter from your employer, credit report from your mortgage professional
-good credit score
5. Why Does It Say 5 Year Term/ 25 Year Amortization?
Is my mortgage paid off in 5 or 25 years?
A mortgage is usually long term so the correct answer would be 25 years. Because, the mortgage is so long in a time period, you have the ability to break it down into shorter terms to reflect the newer interest rates and the new options that have been put into place. A 5 year term is the most common term in a closed fixed mortgage.
Is That good?
It is nether good or bad. For right now the interest rates are low, when you renew in 5 years from now chances are you will be renewing at a higher interest rate. Although if you have had a mortgage previously and your mortgage is now coming due, you would be getting a lower interest rate then what you had previously. It is all about timing that no one can control.
For options that usually is better for you. We now have more liberal prepayment clauses then we did 5 years ago. It is always a good idea to talk to your mortgage professional about 3-6 months before your mortgage needs to be renewed. They will watch the market for you to time a better deal for renewing.
How Much Does A Mortgage Professional Cost?
The services of a mortgage professional is free. The financial institutions pay the mortgage professional when a mortgage is secured. So unless you have an extreme case, you will not pay for any of these great services. The mortgage professional will disclose to you at the start if they require payment for securing a mortgage for you.
When Buying a Home What Do I Pay For?
-Closing Costs-- lawyers, property transfer tax, home inspections
If needed-- home appraisal, well inspections, septic inspections
For closing cost a budget of 1.5% of the purchase price is usually enough to cover this expense.
Of course, if you should have a specific question please email or call me.
akroemer@mortgagegroup.com
1.250.650.4182
