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Getting a mortgage is typically the most confusing part of buying a new home. To simplify the process and help you understand what your options are, I have included this mortgage guide. You can also feel free to contact me directly and I will help you understand the entire process and identify homes that fit within your budget. Get started here. Link - https://mountpleasanteast.ca/contact


Step 1: Applying For A Mortgage


Assessing your financial capability is the first step of the home buying process.

You have to determine what kind of down payment you can make, how much you have to borrow, and what you can afford moving forward.

To help with this process, I have provided you with a mortgage calculator which will give you an idea of what to expect for your financial future after purchasing a home in Davisville.

Alternatively, you can call me directly and I can help you find the right rates and plans to suit your financial reality. You can reach me here.



Step 2: Find The Right Mortgage For You


There are a number of different options when it comes to selecting a mortgage plan for your new home. I have listed the general categories below to help you decide which one best suits your needs and financial reality.

A) Fixed Rate Mortgage

A Fixed Rate mortgage usually has terms that can last from 1 year to 10 years. As the name suggests, the interest rate and monthly payments will remain the same for the specified term.

This type of loan should appeal to you if you:

  • Plan to live in the home for more than 5 years

  • Like the stability of a fixed interest payment

  • Think your income and spending will stay the same

  • Don’t like the risk of having a higher monthly payment

B) Adjustable Rate Mortgage

Adjustable Rate Mortgage (ARM) lasts for 3-5 years. But during these terms, the interest rate on the loan can go up or down which means monthly payments can increase or decrease.

This type of loan should appeal to you if you:

  • Plan to say in your home for less than 5 years

  • Don’t mind having your monthly payment increase or decrease

  • Are comfortable with risk of possible payment increases in the future

  • Think your income will probably increase in the future

C) Combination Rate Mortgage

A Combination Rate Mortgage combines fixed interest rates and adjustable interest rates.

This type of loan would appeal to you if you:

  • Want to manage interest rate risk

  • Choose to take advantage of both long and short term rates

  • Like the stability of a fixed interest payment

  • Don’t mind having monthly payment increase or decrease

D) Lines of Credit

Line of Credit is becoming an innovative way to finance your home purchase. You can take the amount you need from the credit limit that you were granted. You only pay interest on what you use and this money can be put towards things like home renovations, a child’s education, and debt consolidation.


Step 3: Submitting Your Mortgage For Approval


Submitting your mortgage information to your mortgage associate is the next step in qualifying for your new home’s mortgage. This may require different types of documentation which your agent will make clear to you once you begin the process. Approval will be submitted to you via email or fax.

Once approval has been granted, your mortgage associate should also review your commitment to the mortgage. Within 10 days, any additional documents necessary for the mortgage may be requested by the lender. Once this process is complete, you are ready to buy!


Step 4: Legal Process


After you have been approved for your mortgage, your mortgage associate will send  your paperwork to your lawyer for review. Your lawyer must sign all relevant documents to make the mortgage official.


Be sure to review any terms and conditions of the mortgage thoroughly, as this is likely to be one of the biggest purchases of your life. Also ensure that all information provided on the documents is accurate with no spelling mistakes as this can lead to problems down the road if not handled correctly.


Remember that there are also fees included when closing a mortgage deal so be sure to retain some of your money for that eventuality. Proof of insurance must also be provided as well as any supporting documentation which should be provided either by your mortgage associate or your lawyer. Finally, bring a bank draft check for the down payment and any closing costs - personal checks are not allowed.


Once all of these conditions have been met, your signature is required in front of a lawyer or a notary public to finalize the sale.


That’s it! Now you’re ready to enjoy your new dream home!