Get Your Mortgage in 5 Easy Steps – Here’s How
Are you planning to buy a home in the near future? Getting a mortgage can be intimidating for first time home buyers. It’s a necessary process if you want to own a home in Canada, but it doesn’t have to be as difficult as you think.
All you need to do is follow these steps:
Get your financial situation in order
If you are planning to buy a home in the near future, one of the first things you should do is work on getting your financials in order. This will mean different things to different people based on your specific financial situation.
Here are some things you can do to simplify the mortgage application process well before you are ready to buy:
- Start saving for your down payment
- Use an online mortgage calculator to get an idea of how much of a mortgage you will qualify for
- Create a personal budget and work out how much it will cost to own a home (property tax, insurance, energy bills, general home maintenance costs, etc.)
- If you have debt, try to pay off as much of your credit cards and other debt as possible
Find the right mortgage professional for you
In general, you have two mortgage options. You can go to the bank, or you can use a private lending brokerage (mortgage broker). Mortgage brokers offer you a number of advantages; in particular, they can get you quotes for mortgages from many different lenders. They are also mortgage experts and help you with all your mortgage needs, including helping you with the application process and answering your questions about how mortgages work.
Complete the mortgage application paperwork
Many future homeowners are intimidated by all the paperwork involved. Considering how much money you are asking to borrow, it’s a necessary step. A mortgage broker can help you with your application. You will need the following information to complete a mortgage application:
- Credit report
- Proof of income and employment verification (for all parties to be listed on the mortgage)
- Down payment amount
- Proof of down payment – bank statements
Approval/Pre-Approval
Most professionals recommended getting pre-approved for a mortgage. This is a free service that allows you to know how much money you can afford to borrow, based on your financial situation, credit rating, and application. This will help you narrow your home search and understand the types of homes that fit within your budget.
Choose Mortgage Terms
Once you’ve been approved/pre-approved for a mortgage, you will know how much money you have to purchase a home. Once you find your home and make an offer, you will also be required to choose your mortgage terms:
- Do you want a short term or long term mortgage?
- Do you want an open or closed mortgage?
- Do you want a fixed or variable rate mortgage?
- What amortization period makes sense for you?
Your mortgage broker can work with you to choose the right mortgage terms for you.
Learn more about your mortgage options with Matrix Mortgage Global. Contact our expert team of mortgage brokers today to start the mortgage process.