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Tips for Getting a Home Mortgage

  • June 22, 2020

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Tips for Getting a Home Mortgage

Buying your own home is an exciting endeavor. However, since it is something that people only do a couple of times in their lifetimes, it's not usually something that people are well-versed in. When you are looking at buying a house, you’re going to be inundated with jargon. Whether you’re hearing about stamp duty or why you should use a reverse mortgage calculator, it can all become quite confusing. Buying a house is going to be exciting, and the best way to ensure that you get all things mortgage-related correct is to get some advice. You can do this with a mortgage broker, or you can speak to the bank and see whether they have anyone in-house that can point you in the right direction. Either way, ensuring that you have the best tips to hand to get a home mortgage is the best thing to do for this life-changing purchase. Below are a few great tips that can make the mortgage process a little easier, whether you are buying your first or fourth house.

Find the Perfect Home

Contrary to popular belief, it's best to pick out a home you want to buy before you move on to any other steps in the home buying process (other than saving up the money to afford a down payment on the home). After all, there's little point in doing any paperwork or looking for a bank if you don't even know what house you want to buy. So, do your home search first!

Related to getting a home mortgage: 

Organize Your Paperwork

Before doing anything else, it's best to have all of your paperwork in order. What kind of paperwork do you need to take out a mortgage? Typically, you will need to have tax transcripts, proof of income (pay stubs or W2s), bank statements, and proof that you have previously been able to pay a mortgage or rent on time. Any lending institution you choose will likely require you to have all of these documents, if not more before they consider taking you on for a mortgage loan. These documents are what proves to the lending institution that you will be able to pay off your loan.

Pick a Lending Institution

Once you have all of your paperwork in order, it's time to look into what lending institution is right for your needs. Different banks, credit unions, etc., will likely all have different interest rates. Whenever possible, it's best to pick the institution that has the lowest interest rate. By doing this, you will end up paying less money in the long run.

So, how do you find a lending institution? One way is to look through the institutions in your home town, or otherwise nearby. Some lending institutions even specific in working in certain places, like Burke Financial in Ontario, Canada. Another way to find a lending institution is to do a simple Google search. Search for a bank and your zip code to find one near you.

Overall, the best way to choose a lending institution is to make sure that you are looking at the credentials of those you are considering. Part of this will be ensuring that the businesses in question follow along with all relevant regulations such as HMDA, to ensure that their lending practices are fair and appropriate. A company that makes use of a reputable HMDA scrub service is likely to be a good bet, so that is one of the major things to look out for. At every step of the way you should be trying to protect yourself by picking the right company.

Follow these steps in order to make your home buying process as easy as possible. It can sure save a lot of stress, time, and money in the long run. Good luck!