Mortgage - Home Financing Made Easy

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Mortgage - Home Financing Made Easy
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Synopsis

1. Top Reasons to Consider Making Lump-Sum Mortgage
   Payments
2. Worried about Your Mortgage Rate? Know How to
   Save Thousands!
3. Interested in a Mortgage Preapproval? Do Not
   Forget Some Important Points for Success!
4. Finding it Difficult to Approve Your Mortgage?
   Learn What Lenders Consider Before Approving Your
   Application!

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Top Reasons to Consider Making Lump-Sum Mortgage
Payments

• You have to understand that your regular monthly
  installments are only going to tackle the
  interest and may do a little to lower the
  principal. The lump-sum contributions are going
  to cover the principal though. Therefore, it is a
  great idea to make larger contributions whenever
  possible to bring the principal down.
• By making lump-sum payments, you will end up
  saving a lot of money on the internet along with
  saving years on your amortization period the
  amount of time you require to completely clear
  your loan is the amortization period. By reducing
  this period, you will wind up paying less
  interest, which is going translate into big
  savings by the tie you pay off your loan
  completely.
• Expect large savings when making larger payments.
  For instance, you may end up saving 17,774 in
  interest if you pay 2,000 per year on your
  300,000 mortgage. You will also end up paying
  off your loan at least 6 years sooner that is
  when you have a mortgage at the rate of 2.99
  with a 25-year amortization.

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Worried about Your Mortgage Rate? Know How to
Save Thousands!

• Do not forget to check what prepayment privileges
  are available. It is true that with an increase
  in the interest rate, you will be paying more to
  meet the interest rate than settle the principal
  amount. Therefore, it is of immense importance to
  select a deal that offers prepayment privileges
  and allows you to make large lump-sum payments to
  pay your loan faster. For this, you may be better
  off working with non-bank lenders because they
  are likely to offer lower rates and throw more
  generous prepayment privileges your way. Just be
  sure to consider non-traditional lenders that
  come with a solid track record.
• Be sure to consider penalties when taking out a
  loan. You should know in advance exactly what you
  would go through if you ever need to break your
  mortgage. You may wind up breaking your mortgage
  for many reasons some do it after they get
  divorced, while others may have to do it after
  losing their jobs. You need to consider those
  unexpected circumstances because breaking a
  mortgage could cost you thousands in penalties.
  Therefore, you should practice care and read the
  fine print carefully. In Canada, you usually have
  to pay 3-month's interest upon breaking your
  mortgage that is when yours is a variable-rate
  mortgage. You may end up paying much more than
  that in case of a fixed rate mortgage you may
  have to pay a much larger amount calculated
  considering your current mortgage rates as well
  as your remaining mortgage balance. So, be sure
  to ask your lender to explain their terms and
  conditions related to mortgage penalties.

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Interested in a Mortgage Preapproval? Do Not
Forget Some Important Points for Success!

• You are likely to get a pre-approval without
  having to go through a lot of hassle if you come
  with all verifiable information, especially a
  letter that states your income. You do not have
  to worry about down payment verification if you
  can provide a proof of your income. If the lender
  thinks you have satisfactory income, they might
  be willing to offer a pre-approval with fewer
  conditions.
• Work with the mortgage broker and ask them to
  check your credit history and ensure that there
  is nothing that they would like to be changed. It
  is true that most lenders are not going to check
  your credit history at the time of pre-approving
  your mortgage but they will eventually do it at
  the time of final mortgage approval. Therefore,
  it makes sense to have it done as early in the
  process as possible. At this stage, you may also
  be able to get important advice from your broker
  to build your credit history, if of course, you
  do not have any. You can take a number of steps
  during the soft stages of buying a home to
  improve your credit score.
• Stay away from making any lavish purchases while
  looking for a mortgage. Many people do not
  realize that running up credit cards or making
  lavish purchases can have a direct impact on how
  much amount they can qualify for. Your lenders
  will feel much better when they know they are
  dealing with a financially responsible person.
  Similarly, it is going to hurt you if you change
  your job often in fact, it can affect how much
  money you can get if you change your job in 6-8
  months of buying a property.

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Finding it Difficult to Approve Your Mortgage?
Learn What Lenders Consider Before Approving Your
Application!

• Understand that lenders consider the ability to
  repay a mortgage in different ways. They check
  your unique circumstances and pay attention to
  your credit history to check if you have borrowed
  anything in the past and repaid it too.
  Interestingly, you are likely to get your
  application approved if you have taken a loan in
  the past and repaid it than never taking a loan
  in the past. They want to know that you know how
  to manage mortgage payments.
• At the same time, they are going to consider your
  capital. It means that they want to ensure that
  you have accumulated some assets in the past and
  that you have something to repay their loan if
  things do not go as planned. They are also going
  to be quite concerned about collateral. In case,
  you are looking for a mortgage, you will be
  offering your home as collateral.
• Experts believe that lenders will always consider
  your 'capacity' before they approve your
  application. Capacity, in this case, refers to
  'debt servicing'. It means that they will
  consider that your housing cost stays well below
  30 of your gross income. Along with capacity,
  they are also going to count in your character
  before finalizing a decision. They will consider
  the nature of your job and how well you have been
  managing things in your workplace. They are
  likely to consider your current residence and the
  duration of your stay in that location.

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The End

• For more details, please visit
• https//mortgagesolutionsgroup.ca/mortgage-pre-app
  roval/