As a first time home buyer in Port Coquitlam, you are probably really excited and ready to sign on the dotted line. However, before you agree to the final terms of a mortgage there are more than a few questions that you need to carefully consider.
These are the most important questions that you need to ask yourself as a first-time home buyer:
What Can You Afford It?
Before you even start the process of borrowing money to buy your first home, it is important that you know roughly how much you can afford. The amount that you can borrow and the amount that you can afford are not always one in the same. There are some instances where first-time home buyers qualify for a mortgage loan that actually exceeds what they can realistically afford. Working closely with a Port Coquitlam mortgage broker can help eliminate this problem and ensure that you get a mortgage that is affordable.
Do You Need to Get Pre-Approved?
Getting pre-approved for a loan is not the same thing as actually being approved for a loan. It can be a good idea to be pre-approved before you start looking at houses to purchase, but remember that you still have to obtain full approval. There is very little financial information that is used when pre-approval is given, so you still have a long way to go. Never mistake being pre-approved for a mortgage loan to mean that you have secured the loan in full.
Do You Know Your Credit Score?
As a first-time home buyer, there is no information more vital to you than your credit score. Your credit score is a huge determining factor in your ability to qualify for a mortgage loan and the type of interest rate that you obtain. A higher credit score is linked to lower interest rates. Getting a low interest rate on a mortgage loan is important, because the amount that you pay in interest over the life of the loan could be considerably less if the rate is even just slightly lower.
What Type of Mortgage is Best?
Mortgages can be pretty confusing no matter how many homes you buy, so when you are just starting out it is always a good idea to have a qualified and knowledgeable mortgage broker by your side. They can point you in the direction of the type of mortgage loan that meets your needs best.