5 Money Saving Musts Before House Hunting! Save Thousands $$$!

Kawartha Lakes Mums - Want To Save Thousands on Your Mortgage?

Savvy Money Saving Tips - House Hunting

By Dustin James DLC Featured Author

Before committing to home ownership and hefty mortgage payments, there are a few factors you will want to carefully consider.
Carefully evaluating these factors beforehand can save you thousands of dollars.

5 Money Saving Musts Before House Hunting

Money Saving Mortgage Tips 

Industry research has revealed several common mistakes many homebuyers make when shopping for a mortgage. Here are 5 things to consider:

1. Pre-Approval Tips.Always, always, always get pre-approved before looking for a home. A pre-approval can be completed in as little as 15 minutes, in person or over the phone, and will give you a more realistic view of what you can afford. One never wants to fall in love with their dream home, only to realize the bank won’t approve them for that amount! A mortgage broker can provide you with a free pre-approval and hold the best interest rate for 120 days, thereby protecting you from sudden interest rate changes.
2. Consider Long Term Goals.Take time to carefully ponder your future and long-term goals to determine your mortgage needs. There are a few questions you should ask yourself: How long do you anticipate staying in this home? How much can you comfortably afford to pay per month for your mortgage? Can you sustain the risk of interest rates changing? Answering these questions and discussing them in detail with your mortgage broker will assist you in getting the most appropriate mortgage for your future and your needs.
3. Evaluate Your Cash Flow. Sit down and carefully evaluate your financial situation and decide what monthly amount you are comfortable committing to. Though you will discuss this during your pre-approval, it is important to remember you may be approved for an amount that is higher or lower than the amount you are comfortable with. A Mortgage pre-approval is not designed to take into account your day-to-day expenses such as hydro, water, food and health, transportation, etc., so it is vitally important that you work these numbers out on your own.
4. Understand Mortgage Terms. Make sure you understand the terms, for example the prepayment privileges, payment options, and whether the mortgage is portable and transferable. Never make the mistake of assuming all mortgages are the same! Are you able to switch your payment frequency to weekly or bi-weekly down the road? How much are you able to prepay every year without penalties? Are you able to increase your payment amount? Understanding your options can shave years off your mortgage, assist you in avoiding steep penalties, and significantly lessen the amount of interest you will be charged over the term of your mortgage.
5. Choose a Specialist.Instead of choosing a generalist, chose a specialist. Considering dealing with a Mortgage Expert. Consider dealing only with a professional who specializes in mortgages and knows the mortgage products available to you inside and out. Their services are free unless private financing is required, and they are able to shop a large variety of major banks and lenders, saving you time, money and the hit that shopping around takes on your credit score. Mortgage brokerages receive preferred rates due to the volume they refer to lenders, and are able to offer better than the banks posted rates.

By simply and carefully evaluating these 5 factors, you will be able to make a more educated decision on the best mortgage and terms suited to your needs, as well as saving yourself frustration and thousands of dollars.

About Dustin James

Dustin James, regularly shares Savvy Money Saving Tips on Kawartha Lakes Mums. Dustin, a mortgage agent with Dominion Lending Centres, is committed to helping people in the Kawartha Lakes achieve their financial and real estate goals.
Specializing in residential, commercial financing, refinancing and debt consolidation for the past 7 years, Dustin is able to assist many clients that banks are unable to service, including those who are self-employed or those who have poor credit. If you have a property or personal situation that does not fit the bank’s lending criteria, a qualified mortgage agent is the answer.
Find out more about Dustin James on his profile page or visit his website dustinjames.ca You can also follow Dustin James G+

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