When it’s time to apply for a mortgage many people first head to the bank that they usually deal with. While this is always a good idea, it is not the only place you should be going. If you are thinking about buying a new large screen TV, you'll shop around for the best deals before making a purchase. It is the same with mortgages.
How to Apply For a Calgary Mortgage
One of the first things you need to do is to determine how much available money you will have to pay for the mortgage. This means you need to sit down and draw up a very detailed monthly budget. You will need to consider your rent (which can be used toward a mortgage payment), all household bills including phone, utilities, credit card payments, insurance, car payments, existing loans payments, and incidentals for entertainment, clothes and miscellaneous expenses.
Banks take a serious look at your credit history, especially looking for a poor payment history and bankruptcies, and your credit score. Don’t despair if your credit rating is not too stellar because there are some mortgage lenders who will still give you a break. You may have fewer choices in picking a mortgage lender, but you still have a chance of owning that dream home.
The best thing you do to find out where your credit rating stands is to get a credit report before you apply for a mortgage so there are no unexpected surprises. Mistakes are made and with the advent of identity theft you don’t want to get caught up in a nightmare that was not of your making. If there is something that doesn’t belong on your credit report, you must get the problem addressed right away and get everything straightened out before you apply.
You will also need to provide full verification of all employment and income sources when you submit your application for a mortgage. You need this information because it allows the mortgage lender the ability to determine your ability to repay and handle the mortgage payments.
Additionally, by comparing what percentage of your monthly expenses are relative to the money you’re bringing into the household, the lender will have a better idea of what terms and monthly payments you will be able to comfortably afford.
Once you are comfortable that you will be able to manage a mortgage then it’s a good time to go shopping for that new home. Once you’ve found that dream home there will be one final piece of paperwork that you will need to present to the lender with your application. This is a copy of the purchase contract for the home you wish to buy.
The purchase contract will clearly spell out the amount you are paying for the home and the amount of the down payment you intend to pay toward the purchase of the house. The balance would be the amount you will need for your mortgage.
Do your research before you begin your house hunting so you don’t waste your time. There is an abundance of material to advise people on how to apply for a mortgage and what is required. You can also use the services of a mortgage broker who help you find the best deal for your circumstances and it won’t cost you a thing. They have a lot of expertise and guide you successfully through the process.
Where Can You Get a Mortgage?
You could very well miss out on a better mortgage deal by eliminating all of your other options. Here are some of the other financial institutions where you can apply for a mortgage.
Get a Mortgage From a Bank
Are you aware that you can apply for a mortgage at any Calgary bank even if you don't regularly deal with the institution? The advantage of dealing with your own bank for your mortgage is they will have a record of your banking. If it has been kept in good order you may have a better shot at being approved for the mortgage you want. That does not mean, however, that you should not find out what the other banks in town are offering. You have a good chance of getting approved at a bank you have never dealt with before if you meet all the qualifications.
Get a Mortgage From a Credit Union
If you have never belonged to a credit union before, there's nothing stopping you from joining one now. You can look through the credit union websites when buying a home and see which ones you qualify to join. While you're on the sites you can see what they are offering in terms of a mortgage. Sometimes you can find an incredible deal for a home loan at a credit union.
Use a Mortgage Broker
A mortgage broker will do the shopping for you to find the best deal for the type of mortgage you are looking for. This will save you a lot of time and hassle and it’s pretty much guaranteed that you’ll find the best mortgage out there for your needs. If time is a problem or you have special circumstances that require more shopping around for a mortgage than usual, use a mortgage broker.
Is It Safe to Apply for a Mortgage on the Internet?
It can be convenient to do mortgage shopping from the comfort of home, but there’s a risk of your personal information being compromised if you trust the wrong sites. While some websites belong to reputable institutions that supply mortgages, that’s not always the case. The websites that you have to watch for are certain sites that aren't linked to one specific company. This type of site will farm out your personal details to mortgage companies for a fee.
Just by filling out one of these pages you'll be inundated with phone calls and special offers arriving in your mailbox and email inbox promising you the best mortgage deal. Once the spam starts it's hard to turn it off!
There are so many legitimate and reputable mortgage companies in the Calgary area that you should never fall for the advertisements that you may see on these sites that may tempt you to give out some of your personal details. Either fill out an application form on a mortgage site you trust or pick up the phone and call the broker or lender on your own. You'll end up getting the best mortgage without having to compromise your personal data.
What is Mortgage Pre-Approval?
When you first contact a real estate agent and ask for help finding a home, one of the first questions that will be asked is whether or not you have been pre-approved for a mortgage. If you are a first-time home buyer you may not have even heard of this term before.
A pre-approved mortgage is an assurance from a lending institution that you will be approved for a mortgage once you have found a home. There will be a limit on the amount of the mortgage, which will be clearly stated on the letter you receive indicating a pre-approval. With this in hand, you'll know your limits for the homes you’ll be able to look at according to their prices.
Anyone that has sold a home before knows that it's not only about receiving offers on the property but rather actually getting the deal closed that is of prime importance. A pre-approval letter for a mortgage from a home buyer takes a lot of the muss and fuss out of the closing procedure and keeps things much more simple. As a result, it's easier to negotiate on the home and work out a deal that satisfies all parties involved.
Shop at a Reputable Calgary Mortgage Lender to Buy Your New Home
Remember that a small mortgage deal can make a difference when you add up the savings you’ll get over the span of 25 years. When buying a home it is definitely worth your time and trouble to shop around for the best mortgage. Lenders are always on the lookout for qualified borrowers and there is still competition for mortgages happening in the financial world.