It is fair to say that buying a home can be considered stressful. From choosing where you want to live, to finding the right home and putting in your offer, the entire process can tend to be time consuming.
Although such a process may seem overwhelming, much detail and attention is also needed in the progression of securing a mortgage to pay for your brand new home too. Just like house hunting, getting the best mortgage for your situation can take some time and patience.
The following tips will help guide you in saving time and reducing stress when putting your mortgage together.
Determine a Monthly Payment You can Afford.
This should be done even before you start house hunting. Calculate your monthly expenses and deduct them from your monthly income. The difference is approximately what you can afford for a monthly payment. It is critical to include all your expenses, including those you do not pay monthly such as house insurance, taxes and maintenance costs.
Choose the Type of Mortgage You Want. There are two basic types of mortgages: fixed rate and variable rate. With a fixed-rate mortgage, the mortgage’s interest rate is fixed for the term of the mortgage, so your monthly payment remains the same for the entire term, regardless of what happens to overall interest rates. A fixed-rate mortgage helps you to budget your finances due to you knowing exactly what your payment will be every month.
The monthly payments for a variable-rate mortgage will fluctuate throughout the term of the mortgage according to current interest rates. Variable-rate mortgages are beneficial when interest rates go down after you get your mortgage for the reason that your payments will go down too.
Do Some Mortgage Rate Shopping. Different financial institutions, including your bank or credit union, will offer different mortgage rates. While some of the rates might seem similar from one institution to the other, be sure to pay attention to even the slightest variance. With average prices for homes in Markham at an all-time high, even small shifts in rates can save you thousands of dollars over the term of your mortgage.
Get Pre-Approved for Your Mortgage. Being a high-demand community, buying a home in Markham can be very competitive. When you find a house you want to buy, closing the deal as soon as you can will be most beneficial. When you get pre-approved for a mortgage, you will be ready to go when the right deal comes along.
Talk to a Mortgage Broker – The best way to find the perfect mortgage for your new home is to talk to a mortgage broker. Mortgage Brokers have great knowledge of the mortgage markets and can assist you in finding the absolute lowest rates and the best type of mortgage that fits your budget and preferences.
If you’re looking for a home in Markham, Richmond Hill or York Region, and want to make sure you get the best mortgage for your budget, call us here at The Stephen Tar Team and we will be happy to answer any of your questions.