Most people need a loan to buy a property and knowing what you should have for it will help you get a home loan that is right for you. The process of buying a home can be overwhelming due to all the steps including where to buy a house, who should turn around, what loan should be taken and the terms involved. Working with a mortgage broker will make a big difference as their expertise will allow you to enjoy the experience.
Many people prefer to take their loan from a bank, however, this is not the only option available and you may find other lenders who can often offer lower rates. Going through a financial institution is the only option, so don’t feel like you have to go this route because you can choose to have a mortgage broker if you choose. If your financial situation is complicated and not exactly ideal, a mortgage broker will be able to help, while a bank may refuse your request. Mortgage brokers have many affiliations with different lenders and will go through the process to determine which loan is best for you. Take the time to look at both the bank and the broker to see which option is more meaningful to you.
Consider whether your financial situation may change as this will help you decide what type of loan to take. Adjustable-rate is a good option if you are expecting an increase in your income, a fixed rate is the way to go when you are experiencing instability at work and discomfort from your job. Think long and hard about this aspect, so that you can make the right choice based on your personal situation. You will also have the option to lock your mortgage rate for a certain period of time, which may cost you a little more at first; however, if the rate goes up it will keep you safe, which will save you money in the long run.
Don’t be afraid to negotiate, because while you can’t do much in terms of a loan, you can negotiate on other aspects. For example, you are able to forgive your employer an application fee or other fee that may reduce the cost of processing. Ask for a list of expenses and decide which one can be removed. Your lender will usually work with you in this regard, so don't be afraid to ask.
Colin Bruce will make sure your home buying experience is positive and can help with all your mortgage needs. Then whether you're a first-time homebuyer, need to refinance, or are interested in another mortgage, we can help, so if you're in the Edmonton area, call our office today!