Finance Mortgage 10 – Five tips for choosing a mortgage

Keeping track of the mortgage market can be a full-time job when you’re preparing to buy. As an experienced local real estate agent, I work with many clients who seek advice on the best approach for financing their purchase.

While it’s not my role to give financial guidance, I always suggest clients do their due diligence because mortgage products are tailored to personal circumstances. It’s not a “one size fits all” situation.

Below, I have listed some tips when considering your mortgage options. But make sure you speak to your personal financial advisor to find the right solution for your specific situation.

Your position – Understanding your financial situation is critical. Spend time assessing your income, savings, debt, and credit score. Work with your financial advisor or accountant if your situation is complex. Getting your math wrong can be expensive down the track.
The options – There is no shortage of options in the market. Explore various types of mortgages, such as fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans. Each one comes with their own set of rules. Shop around or find a mortgage broker who can provide you with options and explain the benefits of each one.
Repayments – Mortgage calculators will give you a great idea of how much money you can afford to borrow. The best ones will factor in property taxes, homeowners insurance, and private mortgage insurance (PMI), which is charged if you don’t have a deposit.
Reputation – You must be confident in the mortgage provider you select. Investigate their track record and reputation. Do not go with a lender because they offer the lowest interest rate. You want a competitive deal, but you’ll also need flexibility and good customer service.
Get ready – You have two approaches here. You can seek to be pre-qualified, which means you have an informal estimate of your borrowing limit from a lender, or you can seek pre-approval. This means you can make an offer with the confidence your lender will deliver the necessary finance.

By understanding your financial position, exploring various mortgage options, and selecting a reputable lender, you’ll be well-equipped to secure the best possible financing for your home purchase. Remember, while the tips provided can help you get started, it’s essential to consult with your personal financial advisor to tailor your mortgage strategy to your unique situation.