When looking to purchase a home or land, getting a mortgage can seem complex or daunting, especially if you are a first-time buyer. Therefore, it is helpful to know what you can expect. In this week’s edition, we will explain everything you need to know about each of the four essential steps to a mortgage: Pre-Qualification, Search, Mortgage Application and Closing.
Get Your Pre-Qualification
You really need to figure out how much home or land you can afford first. This step lets you set realistic expectations for house hunting and choosing a mortgage loan. This step is important before kicking off the mortgage loan process.
A mortgage calculator is a very useful tool at this stage as it can show you the impact of different rates on potential monthly payments. Use TTMB’s online mortgage calculator to get an estimate of how much your monthly mortgage payment could be, as well as, to give you an idea of how much you could qualify for based on your income, age and debt. Learn more about our prequalification process when you read How to Pre-qualify.
Start your search within your price range to find a property
Most people start looking for properties or land long before they are pre-qualified and perhaps before they are even thinking of buying a home. But once you have followed the first step above, and have your pre-qualification, you are now ready to begin looking in earnest.
With estimating your own budget, you can now start looking at homes or land within your price range. Here are some tips on how to select a property that you want to ensure as your ‘best fit’ – Say Yes to the Address!
Apply for a Mortgage
Once you have identified the property, you are ready to apply for a mortgage,
We will need information from you to give you an offer. We may have some of this information already but we may need more or updated information.
It is a good idea to check your credit beforehand to see where you stand. Be prepared to explain any issues or missteps in your financial background.
Close on the Property
If your mortgage application is approved, it is now time for closing. At this stage, you will have some documents to review and sign. Once you have reviewed and everything looks to be in order, you will sign to accept the mortgage! Well done!
Check all of your documents carefully, make sure you understand the mortgage you are being given, and seek expert help if you are unsure about anything. Because you will be paying your mortgage for a long time, it makes perfect sense to get it right.
In the end…the process can be long and stressful, but make sure you do not rush it.
