The purchase of a home is one of the biggest decisions and significant financial investments you will make, and understanding each step of the mortgage process is key to ensuring this investment is right for you.
There is no substitute for being prepared. Educate yourself and get the facts you need to make the right mortgage decision and increase your home buying confidence. Different consumers are at different stages in their lives. They have different mortgage needs and there are many mortgage products to choose from. The best result will occur when you work with a mortgage professional who can offer sound, professional advice and a mortgage solution that matches your needs and circumstances. Above all, you need to be comfortable with your mortgage choice.
The site simplifies the process by providing you with the resources you need to find the right mortgage solution and the right mortgage professional for you.
When connecting with a mortgage professional to help with your purchase, there are a number of key questions you must ask to ensure you are a) dealing with the right professional and b) they are transparent about their business and dealings to ensure they are committed to you and getting you the best deal. Being informed and getting more information always protects you as a homebuyer.
Here are some of the questions you should ask:
A credit score is a summary of your credit history and how consistently you pay your financial obligations. It includes credit account information, employment and personal financial information.
Having good credit history and a good credit score are very important when purchasing a home. A good credit score may help you borrow the money you require to purchase your home. A poor credit score may determine whether you have to pay a higher interest rate. Basically, your credit score indicates how likely you are to repay future debts and can speed up or slow down your mortgage approval process.
More than one credit report bureau keeps records on you. Equifax and TransUnion are the two principal credit bureaus in Canada. Use the links below to obtain additional information on what a credit history and credit score are, why it's important to check your credit report, how to obtain a copy of your credit report and how you can improve your credit score if necessary.
It is important to obtain a pre-approval or a pre-qualification for the amount of money you can borrow from a lender and avoid looking at homes that may be out of your price range. The pre-approval process usually guarantees a rate for a period of 90 days while a pre-qualification will not provide a rate guarantee. In some cases, a lender may ask for a guarantor to provide additional security for the lender. A Guarantor is a party who signs the mortgage documents along with the borrower, but who does not have any interest in the ownership of the property.
Few people can come up with the entire amount of money required to pay for the cost of a home and require a loan to finance the purchase their home. The lender will require the property as security in order for the borrower to obtain the loan. The security of land is referred to as a mortgage. A mortgage loan allows individuals to buy property without paying the full value all at once. The mortgagor is the person borrowing money, the mortgagee is the lender of the money.
Here are some elements to consider when getting a mortgage: