You know that a mortgage is a type of loan used to purchase or maintain a home or land. You understand that usually the borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. Your research also goes on to say that the property then serves as collateral to secure the loan. A borrower must apply for a mortgage through their preferred lender and ensure that they meet several requirements.
Now that you have that baseline covered, you may have finally decided to get a mortgage. Yayyyy!
But, wait, are you actually mortgage-ready? If you are about to set off on your mortgage adventure, this quick mortgage readiness checklist may help you to prepare …

Is my Pre-Qualification complete?

Your first move that you must make is to determine how much house or land you can afford. For example, TTMB has a Pre-Qualification exercise which analyses your financial information to help you determine the amount of money you can borrow, your interest rate and your monthly payment. With TTMB, your pre-qualification process will usually provide you with a Pre-Qualification Certification at the end which tells you everything you need to know…in advance. Armed with your Pre-Qualification Certificate, your confidence will be on ten! You can move to the next…

Do I have all the documents required for my appointment with a lender?

A lender will want to satisfy itself that you are able to service your loan. The documents you need to prove this may vary, depending on whether you are a permanent or contract employee, or self-employed. Make sure you have:

•  Identification, usually two forms
• Utility Bills
• Proof of your income – copies of your most recent job letter(s) and pay slip(s), bank statements and any proof of income from other sources
• Proof of your expenses and debts – confirmation of your living expenses, any ongoing loan repayments, any other major expenses such as education, any bank and credit card statements or outstanding loan balances
• Details of any savings and other assets
• Information on the house or land

Armed with your documents, you are ready to face your lender…confidently.

Do I really understand Interest Rates clearly?

This is something that tricks us up. Remember, your mortgage interest rate is the percentage of your loan balance that you pay to borrow money from a lender to buy a home. Mortgage interest rates can be either fixed or variable dependent on the type or term of the loan. Mortgage interest rates affect the cost of borrowing money and the monthly payments of the loan. TTMB offers more stability to customers than the banks’ rates with 2% and 5% mortgage interest rates and now the introduction of a 4 ½ % mortgage rate for six years.
With this clarity, you are on to the last step…

Have I saved for fees such as closing costs, legal fees, stamp duties?

There are several upfront costs that you will have to take care of prior to closing your mortgage, like downpayment, closing costs such as legal fees, stamp duties, and homeowner’s insurance. Remember, your closing costs may range from 5% to 7% of the mortgage amount. TTMB can actually provide you with an estimate of these costs so make sure to cross reference the TTMB guide to all the legal documents you need with what you have to make sure you are ready.