Congratulations on finding the Windsor property of your dreams! Now, the fun part! Paying for it! As if choosing a home isn’t difficult enough, now it’s time to find a home mortgage, which could be the biggest loan you may ever have. So it’s important to ask the right questions and find the loan that is best for you. By asking these questions to your mortgage broker and getting detailed, specific answers, you will save yourself from any confusion when you sign on the dotted line.
1. What loans do you offer and what are the pros and cons of each? It is important that you take into full consideration your current and future financial situation. While the most common loans are fixed and adjustable, there are a variety of other loans to consider.
2. How does an adjustable loan work? Your mortgage broker for your Windsor property will answer your questions regarding the current interest rates, and how the adjustment frequency is calculated.
3. What are my closing costs? This is always a huge concern for buyers, and rightly so. These costs add up and often provide a bit of a sticker shock to the buyer. Ask for a “good faith” estimate and see if they will guarantee it in writing.
4. How much of a down payment do I need to make? Needless to say, making a larger down payment on your Windsor propertywill reduce your loan payments and can often result in a lower interest rate. If your down payment is less than 20 percent, be sure and ask about CMHC Insurance (Canada Mortgage and Housing Corporation) premium that you are required to pay which will be added to your loan.
5. How long does it take before my loan is completed? The answer always varies regarding this question because there are several factors that can delay funding your loan: if bad credit comes up during the final credit score check, home appraisal or information on your application is missing. Talk to your bank or mortgage broker to see what the approximate time frame is and if there are any conditions to your approval, This is why it’s best to start the application process as soon as possible to avoid any problems. Also, do as much research when it comes to your Financing options. Remember, banks make money when you pay interest so it’s not favorable to them to show you how to save on interest.