The content you are about to read was provided through funding donated by our sponsor: Housemaster Home Inspections of Edmonton, Edmonton-housemaster.ca.
You have made the decision to go out and look for a home of your own to purchase, but is it time to peruse the real estate listings already? Well, you can just for an idea of what you want to look at, but don't get your hopes up just yet. Before you start shopping for houses, you need to find out just what you can spend, and that means shopping for mortgages.
First time homebuyers are often surprised at the range of mortgages that are available to them. You'd almost need a management tool to manage all of the options out there. Many just assume that there is only one type of mortgage, and they rely on real estate professionals to point them in the right direction. However, you certainly wouldn't sign up with an agent and tell them you want a house and then let him or her sign the deal for you. When home shopping, you want to look at a range from homes, from downtown properties to suburban homes.
The same principle is true of mortgage shopping. You need to know the range of options you have before you decide on the mortgage that fits you best, and you need to do this before you go out looking for homes.
Why do you need to know your mortgage type before you look at homes? Well, the last thing you need is to spend days looking through condominiums, finally selecting the perfect one, only to find out that you don't qualify for the mortgage that would allow you to buy it. This happens to many first time homebuyers, and it is a frustrating experience to say the least.
If you are reading this article, then you are off on the right foot, as far as mortgage shopping goes. We have a lot of information on the types of mortgages available here, so take a look around and gather the information you need. This info is useful whether you're shopping in the local market or looking at real estate in another city or country. You will probably find that a specific type of mortgage appeals to you, and this is the one you want to query agents and brokers about.
Next, select an individual who can help set you up with a mortgage. Mortgage brokers generally have information on all different types of mortgages available, and can give you comprehensive lists from a large number of sources to get you into one of those houses for sale in real estate. Pay attention to not just the down payments and principal, but the interest clauses and the early payment penalties. The latter two items are where many people lose a lot of money when it comes to their mortgages.
The key to good mortgage shopping is sound math. Select the mortgage that will cost you the least amount of money in the long run. Those interest payments can really add up, often effectively doubling the price you pay for your home. Some good shopping can ensure that you pay far less than otherwise.