Know What You Can Afford:

Before you go shopping for a mortgage whether it be for second mortgages Canada or your first mortgage, be sure to review your monthly spending plan to estimate what you can afford to pay for a home, including the mortgage, property taxes, insurance, and any monthly maintenance and utility bills – Also do not forget to also save for possible emergencies. Plan ahead so that you will be able to afford your monthly expenses for several years. You may also want to check your credit report to make sure everything on file is accurate – Having a higher credit score may help you receive a lower interest rate on your mortgage.

Shop Around – Compare Loans from Lenders and Brokers:

As most of us know, shopping around for a mortgage can take up a lot of time, but if you do not, it can end up costing you hundreds if not thousands of dollars. You can either shop for a mortgage with a mortgage lender or a mortgage broker. Brokers usually arrange the mortgage loans with a lender rather than lending money directly – Which means the broker will sell you a loan from a lender. Neither lenders or brokers have to find the best loan for you – you need to find the best loan for you.

Understand Loan Prices/Fees:

In most cases, an individual will accept the very first loan they have been offered and do not realize they could possibly get a better loan. This could happen on any given day where lenders or brokers offer the same interest rates and fees to certain consumers for the exact same loan, even when the consumers have the exact same loan qualifications. Also make sure you keep in mind that lenders and brokers consider the profit they will receive if you agree to the terms of a loan with higher fees, higher points and higher interest rates. If you wish for an inexpensive loan, you should shop around for the best loans.

Know The Risks And Benefits:

Mortgages have multiple features – some can have fixed interest rates where others have adjustable rates, payment adjustments, some charge penalties where others have large payment dues. Be sure you ask your lender to calculate how much your monthly payments could be from now up to 5 to 10 years from now.

Get Advice From Trusted Sources:

A mortgage loan will be one of the most complex, most expensive financial commitments you will ever have to make and it is okay to ask for help when needed. You could always ask a trusted housing counselor or a real estate lawyer to review your documentation before signing for a loan.