Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

Purchasing a house is one of life’s most exciting experiences. It is a major life change and one of the most important financial decisions you will ever make. However, a dream home can suddenly turn into a nightmare experience if you are not sure which steps to take. Finding the right home does not have to be a hassle and our “shopping for a mortgage in 4 easy steps” will show you what to do so that you can avoid major headaches.

First Step – Selecting the Right Loan

How long do you plan to live in your new house? If change is in the future (baby or possible job transfer), you might want to think short term, an adjustable rate mortgage will give you the lowest payments for a few years. However, if you plan to be in the new home for decades, go with a fixed rate interest loan. This way, your payment will not drastically increase without warning.

Second Step – Go with a Mortgage Professional

A mortgage broker can be one of your best friends when it comes to buying a home. Choose someone with knowledge and experience with mortgages, and check with more than one source before making up your mind. Select a person you can easily communicate with.

Third Step – Understand Your Loan Costs

Before you sign any loan papers make sure to go over all your costs and understand things like fees, points, and insurance. You’ll want to check with two sources:

* Good faith estimate – lists all closing costs including fees. Just remember, this is just an estimate, and some items may be subject to change.

* Truth in mortgage documents – this document tells you what your annual percentage rate will be and discloses important information about your loan terms. This is the best way to ensure you are not hit with some unexpected fees which increase your costs significantly.

Fourth Step – Know How Interest Rates Move

Loan interest rates are affected by the bond market. This information is vital to understanding your mortgage. Mortgages are sold, and when this happens, interest rates and bond rates are affected differently. When one goes up, the other goes down. This movement can be as often as two times a day. Your mortgage broker is the best person to talk to about how this works.

As you can see, it is as simple as 1-2-3-4. These four steps will help to simplify your home buying process and make life a little easier.


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