You have a lot of options for mortgages. Interest rate is top of mind, but a good advisor can prove to you that there are other very important factors to consider in your mortgage contract.
Talk to a real person! Online tools simply don’t know enough about your situation.
Our mortgage podcast episode can help you learn a lot about the process and how to prepare. Use the player below or access on your preferred podcast platform. Search for Multiple Offers – A Real Estate Show.
You can start really early by ensuring that you build a strong credit score. It takes six months or more for the algorithm that creates your credit score to recognize preferred behaviour. These behaviours start simple and can get more complicated. The simple step: make your minimum payments on time. Never, ever miss that deadline. The second simple step is to always keep your oldest credit card. This proves long term credit consistency.
The more complicated steps include periodically carrying a balance on your credit card. Pay the minimum. Then pay the balance off quickly as not to pay too much interest. The idea is that paying a little interest is something lenders like. That’s how they make money!
When it’s time to apply for a mortgage your most important consideration is to get accurate advice. The accuracy of your pre-approval comes from the accuracy of your application. Choose an advisor you can trust and get them good information to work with.
How to choose a mortgage advisor:
You have two primary choices. One is to go on your own to one or more banks. The second is to let a mortgage broker consult with different lenders on your behalf and provide options beyond the big banks.
Our advice is to work with a mortgage broker. He or she will explain the risks of contracts from different lenders and balance that with a good interest rate. A bank representative is working to sell you on their contract and not highlight its flaws. The biggest risk we see in mortgage contracts is severability. We have witnessed the cost and complications of getting out of a mortgage agreement. A lot of consumers only realize when they want out of the contract what a bad contract it is. You never know when your housing plans will change and it’s good to have a reasonable means of terminating the agreement.
More questions? Send them in! Keep in mind you may learn a lot from the podcast episode.
And get in touch with us for advice on who to talk with.