How to Get the Right Mortgage for Your Needs
Whether you are financing your first home
or your fifth investment property
obtaining the right mortgage for your
specific situation is very important. Here are
some tips that will help you navigate your way through this process.
- Examine your personal financial situation. It is important to know up front how much money you can afford to spend on your monthly housing payment. You'll also need to know how much you can afford for a down payment. If you are purchasing an investment property, you need to plan for vacant periods. You should be able to make the payment on your investment property in addition to any other monthly obligations.
- Know your credit score. The most favorable mortgage rates are generally awarded to consumers with a credit score above 680. If your score falls below 680, it is possible that you will fall into the sub-prime market. If this scenario applies to you, contact us immediately. Let us help you obtain the best mortgage rates available.
- When talking with your mortgage lender, it is important to share with them some specific information. This includes: how long you plan to stay in the home you're purchasing if it is a primary residence; if you're purchasing a primary residence or an investment property; what you can give as a down payment; and whether you are able to make a full payment each month (including principal and interest) or if you are looking for a smaller interest-only payment.
- Once you've provided your lender with this information, they will make mortgage product recommendations to you. Be sure that you understand the options presented to you and don't be afraid to ask questions.
- Decide on the right mortgage product that you feel meets your needs and proceed with the application process.