What should I know before applying for a mortgage?
First, calculate your budget. How much you can afford to pay every month? A mortgage quote will be available to you based on your income and ability to qualify.
When qualifying for a mortgage, you will find that mortgages quotes are usually based on 3.25 times the gross income of a single borrower. For joint borrowers, the maximum loan amount is likely to be 3.25 times the first income plus one times the second income, or 2.5 times the joint income.
While working toward qualifying for a mortgage, don?t just look for the lowest interest rate, but compare the terms and conditions of every mortgage policy from every lender that you can. Additional costs such as hiring a conveyancer and a surveyor, buying a Home Information Pack, and getting a house valuation are necessary but costly. Coupled with an often hefty arrangement fee, you may find that choosing a mortgage simply on its low initial mortgage rate is a false economy. Read through our article entitled 'Calculating the True Cost of your Mortgage' for a full list of additional fees.
As there is much competition in the mortgage market, feel free to ask for special incentives. Often times lenders will waive valuation fees or legal fees in order to attract borrowers to their product.
How do I get a mortgage quote and determine if I qualify?
Mortgage lenders provide quote packages with different names and different interest rates, up-front costs, and fine print terms, all of which are subject to change frequently. Gather as much information as you possibly can in order to help you make the best possible decision on which mortgage quote is right for you and what mortgage you qualify for.
When you start to investigate whether you qualify for a mortgage, you will find a number of factors may cause interest rates to vary, such as different lenders, the size of the mortgage, and the amount of the initial deposit that you can afford to put down.
Your challenge is to match a mortgage quote to your personal financial situation to help you qualify. You need to consider current market conditions, your attitude toward risk, and how long you plan to stay in the house.
What information do I need to have when determining if you qualify for a mortgage?
When qualifying for a mortgage, you should have some basic information such as:
- What will the monthly payments be?
- Are there any redemption penalties?
- Will there be an arrangement fee?
- Is the lender providing any incentives?
- Is there tie-in insurance?
- Is there a Mortgage Indemnity Guarantee (MIG) premium to pay?
- How will interest be charged?
- Is the mortgage flexible in terms of mortgage payments?
If you'd like assistance finding if you qualify for a mortgage, take a second to fill out a short mortgage form, and we will put you in touch with a qualified mortgage broker from the SimplyFinance network who will search to find a mortgage for which you can qualify.