Shopping around for the best mortgage rates

Posted in Family

Shopping around for the best mortgage rates

One of the biggest decision you can make is buying a home. It is not necessarily the decision that needs consideration, but rather the money you have to invest in the house. Taking into consideration that many people barely pay the rent after coming back from the army, it does not come as a surprise that do not have cash to move into a house of their own. Thus, they are required to take out a loan. While obtaining a mortgage for Canadian soldiers is fairly easy thanks to the efforts of the government, they still have to shop around for mortgage interests.

Pay attention to the credit score

It is never a good idea to approach mortgage lenders without having an idea of your credit score. The credit score helps lenders determine if you are eligible for the loan and, of course, the rate you will be charged. For this reason it is better to get a copy of the credit report at least six months prior to shopping for a loan. While you will not be dismissed simply because you have a bad credit score, lenders are going to thoroughly analyze your financial situation, meaning recent history of bankruptcy or tax lien.

Get in touch with several lenders

Taking into consideration that there are various institutions that offer loans, such as mortgage companies or commercial banks, you have to shop around. You can either look online or compare the average rates and the information provided by the lender. The likelihood is that each lender will provide you with a quote so that you can find a deal suitable for your individual needs.  Ideally, you should find a mortgage lender early in the process to be able to find the home of your dreams. The reason for this is that the lender will get the process approved faster and in general it will take you less time.

The art of negotiating

Once you have a solid offer, you have to be able to negotiate for better terms. This means that you should ask the lender to tell you all the associated costs, which means interest rate and fees, and demand better terms than you have found in some other place.  Should you be happy with the offer, then you can make the agreement official.

Hire a broker

The major advantage of collaborating with an experienced mortgage broker is that you are not required to go through all this hassle on your own.  They have better knowledge of the lenders that are willing to offer you the discount you need, not to mention that they take care of all the paperwork and negotiate on your behalf. The result is time saved and efficiency of the lending process.