If you plan to finance your home in Collingwood, one of the first steps to take is to shop around for a mortgage lender. A home is often one of the largest investments you will make and you want to be smart about every aspect of this decision.
You never want to settle for the first lender who approves you for a home loan. These financial experts will often vary in the amount that they approve you for, the interest rates you qualify for, etc. By spending a little extra time shopping around, you may receive a much better deal and save a significant amount of money.
So, how do you shop around for a lender? How can you make this process a little less stressful?
Have Your Personal Information Ready
Each mortgage lender may require different pieces of information to determine if you qualify for a home loan. To streamline the process, have all information ready and easy to access. For example, some lenders may require employment verification, pay stubs, copies of personal identification, bank account data, asset information, etc.
If lenders do not ask for some of the information during the pre-approval process, they may at a later date. Having all documents and paperwork ready can prevent any unwanted delays.
Determine the Difference Between Lenders
There are many different types of lending institutions that offer home loans. While you may visit your typical bank, credit unions and mortgage companies should never be overlooked. Each type offers its own set of pros and cons and at some institutions, you may have an easier time qualifying. Do your research and learn the difference between each type in Collingwood and which would make the most sense for your financial situation.
Know Your Credit Score
Your credit score will play a critical role in the pre-approval process. This number is a compilation of your financial habits and behaviors. If your score is high, you can expect to receive a lower interest rate and you will have an easier time qualifying for a mortgage. Unfortunately, if your score is low, you may not qualify for a mortgage or a certain type of home loan. If you do, you can expect much higher interest rates.
By knowing your credit score, you will have a better understanding of the loan and interest rate you are approved for and why.
Do Your Own Research
As you shop around for lenders, take your time to research various lenders. Read online reviews to learn about other’s experiences with that particular individual and financial institution. You will want to be aware of how often closing dates are pushed or delayed, how well the lender is at communicating information, if the lender will waive any fees, etc.
The more you know about the lender, the more confident you will be in your final decision.
After you are pre-approved for a home loan, it is time to begin your house hunt in Collingwood. Give real estate agent Christine Smith a call and let’s help you find your dream home.