Determine Your Mortgage Repayment Term

As part of shopping for mortgage loan options, you will need to determine your mortgage repayment term, which are commonly set at 15, 20 or 30 years. You will also need to choose a fixed or adjustable interest rate. Adjustable rate loans may provide lower initial rates, but can rise over time depending on market conditions. With a fixed rate loan, your rate will stay the same over the course of your mortgage loan.

Etobicoke ON Real Estate & Homes for Sale | RE/MAX West Realty Inc

Get Pre-Qualified or Pre-Approved for a Loan

The terms pre-qualified and pre-approved may be used interchangeably or inconsistently by various mortgage professionals. More important than what the mortgage professional calls it, is what the mortgage professional reviews in order to provide it to you. Getting either pre-qualified or pre-approved for a loan may give you a better estimate of a loan program you may qualify for if certain conditions are met and based on the level or review by the mortgage professional.

Obtaining either a pre-qualification or pre-approval tends to show homebuyers and their real estate agents that you are serious about buying a house, which may help make your offer more appealing. To get either pre-approved or pre-qualified, your mortgage professional will assess your credit history, current income and debt situation. Once completed, they can give you an estimate of how much you may be able to borrow, which is subject to certain conditions and final loan approval. Once you’ve been pre-qualified or pre-approved for a mortgage loan, you will know how much you can spend and you can begin the search for the perfect home!

Seek Final Loan Approval

After your offer has been accepted, you will submit financial documentation, such as pay stubs, tax returns and bank account statements to your mortgage professional to seek final loan approval. At this time, the mortgage professional can schedule an appraisal to ensure the home is valued at least at its selling price. You may also want or be required to obtain a property inspection to assess the condition of the home prior to purchase. Once the appraisal and inspection are complete and the final loan approval is obtained, it’s closing day — and the home is officially yours!

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