Tips for Getting a Mortgage
Are you looking for a mortgage because you want to buy a home for the first time? If you talk to anyone who has bought a house or worked in the industry for years – the lawyers at Rosicki Rosicki & Associates, for example, a mortgage law firm – you will find that the vast majority if home buyers use mortgages as the way to get their new homes. Few have the cash on hand to buy them without a loan. However, buying with a mortgage is popular because it does save you the money that you would have been spending to rent a house, so paying interest is still a better financial deal than trying to save money while renting an apartment. It also gives you a place that really feels like home not to mention the fact that moving is a process that can get quite costly as well, especially if you can’t find cheap movers in Toronto. To get your mortgage quickly, make use of these tips.
1. Get your downpayment ready.
Do not talk to a mortgage company until you have the money for the downpayment. The amount that you put down depends on the type of mortgage and the price of the house, so it is different in all cases, but you do need to have this cash on hand before you start the process. If you have nothing saved up, it is very unlikely that you will get the loan.
2. Putting down a bigger percentage gives you a better chance to get the loan.
In many places, the smallest downpayment that you can make is 3.5 percent. When you apply for the mortgage, you have to tell the company what percentage you would be willing to pay. To make your bid look stronger, you may want to come in with 5 percent or even 7.5 percent. This shows that you have more money to put into it, reduces your monthly payment and makes the mortgage lender more likely to do business with you.
3. Provide your financial records.
You also want to provide the company with the financial records for how much money you made last year. This shows them how much you can make in the future. If you just got a new job that pays you significantly more, they may take a two-week pay stub and proof that you will get that much every two weeks from here on out, even if you made far less the year before, as shown on your tax statements.
4. Have an appraiser look at the house.
Before applying, it may be wise to have an appraiser look at the house along with an inspector. Together, they can spot any problems that need to be addressed and they can tell you what the house is really worth. Do not just take the seller’s word for it, as he or she can put it on the market for any price, regardless of the real value.
5. Understand what pre-approval really is.
When you get pre-approved, it just makes it possible for you to put in an offer. It does not mean that you are guaranteed to get that much; it simply means that the mortgage lender believe that it is likely. They do this quickly so that you can put in the offer before someone else buys the house. You need to know that it is still possible for the loan to fall through.
After you have the house of your dreams, make sure that everything else runs smoothly and efficiently, so be sure to start looking for movers. If you want to benefit from cheap movers Toronto services, then start your research online.