How to shop for a mortgage

If you’re buying a home, you probably need to secure a loan. However, it’s important to shop around for one with terms and conditions that meet your needs. Here’s what you should do if you’re looking for a mortgage.

Start looking early

It’s a good idea to begin shopping for your mortgage three months before you visit any properties. This will give you time to evaluate your options. You should make sure that the amount you borrow is within your budget, and that you’ll be able to pay it back even if the interest rate goes up.

Consider various lenders

In addition to banks, there are trust companies, credit unions and insurers that offer mortgages. The more loans you compare, the more likely it is you’ll find one that meets all your requirements.

Analyze the loan terms

You can save money by negotiating the interest rate on your mortgage. Keep in mind that the contract terms, amortization period, payment schedule, interest type and amount you borrow will affect your home loan payments. Therefore, it’s important to ask questions and ensure you fully understand the pros and cons of each option.

Are you having trouble making sense of getting a mortgage? If so, talk to a mortgage broker for personalized advice.