Season Livingston
How many banks or mortgage lenders did you talk to before signing a mortgage? Did you get the terms you really wanted or just what the banks offered you?
Most people walk into their bank or credit union and try to get approved. If they do; that is great for them! If they don’t then they go to another bank and so on until they do get approved. Did you know that the major financial institutions are not the only options out there for low interest rate mortgages regardless if you have good credit or not?
Saugeen Shores has access to over 30 lenders that will compete for your business, each with different options like pre-payments and mortgage porting so you can take your mortgage with you to the next house.
There are so many different mortgage options that you probably could find one that suits your financial goals and lifestyle. Many of these lenders are even major banks that you are familiar with.
Everybody has heard or been told to “shop around for a mortgage” and that is the best piece of advise you can be given. When it comes to mortgage lenders they will compete for your business. You wouldn’t buy a car without negotiating, so why would you be any different with your home.
One of the biggest misconceptions is that the best mortgage rate you will receive will be from the institution you do your banking with and this simply isn’t always the case. But the only way you will find out for sure is to contact other lenders, visit other banks, meet with a mortgage agent and do some online research before you lock yourself in for a 5 year mortgage term.
Another less understood point about mortgages is that your credit rating is just as important as your annual income. Your credit rating looks at your income, your investments, how much you borrowed in loans, how much credit you have at your disposal and how responsible you are with paying it all back. Every new lender is reviewing your credit history. When you are looking for a mortgage your credit is under scrutiny from all lenders looking to approve you. That’s why many people opt for a mortgage broker compared to doing it themselves because a mortgage broker will review your credit once and shop that one credit bureau to the lenders they have access to; and with the reach that most brokers have they will find more options than you can.
Stay with me until next week when I go over the difference between prequalified and preapproved mortgages because you don’t want to get caught in a technicality and not get the home of your dreams.
