FIRST TIME HOME BUYER MORTGAGE
UNDERSTANDING WHERE TO START
Buying your first home can be stressful. Like nothing you’ve ever done before you can feel as though you’re in over your head. Many home owners pay far too much over the life of their mortgage by not getting the best interest rates that are available to them. The vast majority will go to their local financial institution, giving themselves just one option for their mortgage, by doing so, you are doing yourself a disservice to not have a broker exploring all the options for you. Getting yourself started on the right foot will lead you to a better financial situation both short term and through the entirety of your mortgage. The first step to doing so is finding the correct mortgage broker, with long lasting relationships with over 70 different lenders we will find you you’re best suited mortgage tailored to your financial needs.
MORTGAGE BASICS
First, what is a mortgage? In simpler terms, a mortgage is a loan used to purchase property. In order to pay it off, you’ll have to make regular payments to a lender (a bank, trust, or private lender) consisting of two parts: principal loan amount and interest. Your mortgage loan will start at a very large amount (the difference between your down payment and the cost of the property), with each payment you make, that amount will decrease over the length of your mortgage term.
The difference between a mortgage and a down payment. Simply put, if a mortgage is borrowed financing, your down payment is lump sum that goes towards the principle cost of the property. Down payments are important in two different ways. First, down payments will be deducted from the purchase price, resulting in a lower loan size needed to be borrowed from your mortgage lender. Second, lenders will often look at a higher down payment as a positive on your application and strengthen your chances of mortgage approval while likely getting better terms in regards to the amortization offered and the rate. The larger the down payment, the less “risk” your lender feels they will take on, and the more likely they are to finance your purchase.
The difference between a fixed term vs. a variable term mortgage. A fixed rate mortgage will keep your rate consistent throughout the term (i.e. 4.79% over a 5-year term), and a variable rate will fluctuate (up or down) according to prime lending rates set quarterly by the bank or lender.
KNOWING WHERE TO START
Knowing where to start is the first step, we can be well on our way to your mortgage approval by having you simply fill out our application in the link below. You can decide to do this alone or by contacting me and going through it together, which I often find to be a better option to gain an understanding of your situation as a whole. Once I have received the mortgage application I will go over it and respond via email or phone call. After the application is taken, I will then provide to you a mortgage option breakdown that will show you the various options you may have with different lenders and products. This will be the start to the home buying process.