Things to Know Before Getting a Mortgage

What should I know before looking for a mortgage quote?

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.

Mortgages quotes are 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.

It is important for you to know what is more important—the interest rate or the closing cost. Both the interest rate and the cost factor (points/rebate) are important. You can bargain for a higher rate with a lower cost or a lower rate with a higher cost. 

While looking for a mortgage quote, 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.

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?

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.

There are many online sources for mortgage quotes from sites generated by organizations such as savings and loan associations and commercial banks.

When you start to shop for a mortgagee quote, 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 down payment.

Your challenge is to match a mortgage quote to your personal financial situation. 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 applying for a mortgage quote?

When applying for a mortgage quote, you should have some basic information such as:

  • What will the monthly payments be?
  • Are there any redemption penalties?
  • What will be the rate type—fixed, capped or discount?
  • 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?

If you'd like assistance finding the best mortgage quote for you, take a second to fill out a short questionnaire, and a SimplyFinance representative will contact you to introduce you to a mortgage broker that will search to find the best mortgage deal for you.

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