Getting your first mortgage is a very memorable experience—and it is sure to teach you a lot of important lessons. But there is no need to wait for your first time mortgage because you can easily learn in advance. One of the most important lessons here is that you should be aware of all the important considerations regarding housing and mortgaging before you jump in so that you can factor these properly when making decisions.
To help you out, here are some of the things to keep in mind so that you will be able to face your first mortgage armed with all the information you need.
First, consider the type of house you need. This is not a purely aesthetic question, although that is a big consideration for anyone—we all want a beautiful house after all. But what you actually need is a more crucial factor here, especially if you are on a budget. Consider your present situation—family size, financial capacity, and so on—and what it calls for. As a corollary to this, consider the features you want in your house, like neighbourhood size, home layout, decorative features, tile work, accessibility, and so on.
The second consideration is the amount of mortgage you can actually have. It does not matter if you think you can afford a home worth north of $350,000 if a lender thinks otherwise. In determining this rate, factors like monthly income, employment stability, and current amount of debt will come into play.
Mortgage brokers in BC will be more than happy to help you out in understanding the mechanics of mortgages—so do not be afraid to ask for some help.
Aside from how much a lender can give you, the total amount of the home’s cost will also be an important question. This is primarily because long term, a loan might actually cost more than the total actual cost of the house—so for a first time mortgage, make sure to look into this. Aside from the total cost of the house, consider other relevant regular expenses. Check the cost of living in the area, the property tax rates, and so on.
Lastly, you would have to consider whom to turn to for help during your mortgage. There are many brokers in Toronto, but remember that they are not all made equal. However, more comprehensive guides and tips on looking for the best mortgage broker found in Toronto should be the subject of another article entirely. Basically, however, the key is to look for someone with a good reputation and you are sure you can trust.
While considerably still basic, these considerations should give you enough insights into how you should get your initial mortgage. It might seem common sense, but sadly it is not always common practice, so keep these considerations in mind.