subject: The Five Serious Errors New Home Buyers Have To Avoid When Applying For A Canadian Mortgage Loan [print this page] The 5 important mistakes you must avoid when applying for a Canadian mortgage
1. Not knowing how much money you can really put down
Step number one in searching for a home is figuring out how much
you can afford to spend. Find Canadian mortgage calculators here that can help with this estimation.
It's very important to know how
you can afford to pay in down payment and closing costs
before you apply for your mortgage. The more and more one is able to
put down the better rates and terms you're likely to get. Yet
the same time you also need to stay within your normal
state of living.
2. By not being aware of, or comprehending the entire mortgage process
What was the amount of mortgages you took last week? If you are like
many of us, probably not any. Unfortunately, lots of home seekers don't shop around
for a mortgage more than a few times in a lifetime.
Therefore, it is not a process we are very familiar with.
There are professional mortgage brokers you can deal with that has your best interest as a priority.
It is so important to work with a mortgage broker or consultant who can
provide great communication so that you get your questions properly answered.
3. Only able to work with a limited number of lenders
When it comes to investors, not all lenders have a full range of options. Maybe your lender is limited to just one or two investors and so they may not be able to offer you the type of mortgage you need?
And worse, what if you need to change your mortgage loan system AFTER you started the procedure?
Does your canadian mortgage broker has many
investors that will allow you to look these issues without having
to go through the whole operation again.
4. Buying an new car or purchasing a big item before you
make use of for a mortgage
A lot of people think that it is in their best interest to
wrap up large purchases before applying for their mortgage.
One of the key components in determining the amount of home
you can qualify for is your total debt. large purchases should
therefore be done after your home purchase has closed. In
fact, you will be in a much better position to assess your
needs after you purchase your home. So many things can go
wrong...
5. Over shopping your mortgage loan
When a new possible loaner needs information on you, he will
have your credit report pulled. The concern here, is that
every time your credit report is pulled, there is a
possibility that your credit score will decrease. If your
credit score decreases, your chances of getting the best
rate and terms are also decreasing. Mortgage experts
endorse that you choose a mortgage broker who has a good
number of investors and that you limit your shopping to that
broker.
It's significant to get all the facts before you enter into a contract a
mortgage loan. Find out what will be the total cost of your mortgage
loan, including at closing and for the life of the loan. Not
all mortgages are alike, as there are many subtle differences
which can save or cost you thousands of dollars. Get all the
facts and know what to anticipate.
DISCLAIMER: The data contained herein is deemed
exact and correct, but cannot be warranted against
changes subsequent to the time of it's issue. This
data is not betrothed or offered as legal, investment,
real estate, mortgage, insurance, tax, or other advice. The
author and the publisher assume no liability for the use (or
misuse) of the material contained in this publication or
related materials. This data is not warranted for any
particular or ordinary purpose whatsoever. Viewers of this
material assume any and all risks for any use of this
