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How to Determine the Best Mortgage for Your Situation

by | Jul 2, 2015

How to Determine the Best Mortgage for Your Situation The most important step in determining the best mortgage for your situation is to have a personal budget in place.
Begin by having a complete understanding of your expenses. And, keep in mind, buying a home comes with several associated costs, including a down payment, closing expenses, ongoing maintenance, taxes and utilities.
Creating a budget allows you to re-evaluate your needs and wants. So start tracking your spending so you can figure out how to best save your hard-earned money. Simply list your household income and expenses, and then review your spending habits.
Next, look at your job stability. Are you in a current position you that might not have in a couple of years? Are you in an in-demand occupation? Are you self employed looking for a mortgage?
Also, know your payment and price limits. You can then determine if it’s best to go with a variable rate or a fixed rate.
And, finally, don’t forget to consider your amortization options. This is the number of years it will take for you to pay out your mortgage. Your broker will be able to expand on your options for you.
Determining the best loan is really about deciding on a personal budget and limit, and then finding a home and a mortgage that fits within that amount. Trying to do the reverse is a major mistake and a lot of stress.
Is There a “Best” Time to Buy a Home?
Generally speaking, the best time to buy a home is between November and February.
Fewer people shop for real estate over Christmas and winter. Prices tend to elevate a little bit in the spring and summer.
Usually, there are fewer house sales and mortgages happening from the middle of November to end of January. As a result, if someone lists a house for sale over Christmas, they will likely get fewer showings. So if you’re the sole prospect, you might get a good deal – unless the owner wants to sit on the property until spring.
When buying a home, consider these four factors:

  • Location: Are you close to the amenities you desire? How do you determine what is the best location for you? Once you decide, how do you learn about your neighborhood?
  • Size: Can you comfortably accommodate your family and your daily activities?
  • Special features: What additional items would add comfort, cost savings and fun to your home?
  • Lifestyle: Are you planning to add to your family or are your kids moving away soon?

And Don’t Forget This Critical Step …
You should get pre-approved for a mortgage before you begin shopping for a new home. That way you know financing is available and you can shop stress free. In addition, you also gain an advantage in your negotiation position against other home buyers who are not pre-approved.
Your mortgage broker can lock in an interest rate for you for anywhere from 60 – 120 days. By locking in an interest rate, you are guaranteed your mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. 60 days is usually enough time to find your home but should you need more, your broker can often get a bit of an extension.
However, if interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process and your shopping time.
In general, you’ll get a higher interest rate the longer your term is spread out on your mortgage.
To get your preapproval in 4 hours or less, call GLM Mortgage Group. We always return our calls within 90 minutes!

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