Over the past decade, mortgages have had their fair share of attention. As a first-time homebuyer, starting the process of obtaining one can be intimidating, but it doesn’t have to be. If you’re shopping for a new home, or maybe you’re looking to shift yours around for the purposes of investments, there are several ways to get your hands on a mortgage. For anyone looking to start their search for an Oakville condo or other home for sale, knowing where to start is easy: it’s about asking the experts.
Mortgage lenders tend to be the primary point of contact. These are called your A and B lenders and generally include institutions you already work with, such as:
● Insurance companies
● Credit unions
● Trust companies
● Loan companies
● Mortgage companies
All of these options will provide you with the mortgage you need to purchase a home. A few things to keep in mind here are that each institution will provide different interest rates and conditions for very similar services. It’s important, especially for your first foray into real estate, that you shop around and ensure that you’re getting the best option for your needs.
Mortgage brokers are a little different, as they do not directly supply you with the loan, but, instead, they seek out the lender for you. The benefits of this option include access to deals that are only offered through lenders, a wider array of services and products, and zero fees for their services.
If you’re shopping for Oakville real estate or for the neighbouring areas, be sure to do a quick internet search for brokers in your area as the rules vary from province to province, and sometimes between cities.
Types of Mortgages
Now that you know where to go for a mortgage, you can start considering what type of mortgage you might need. There are different types of mortgages with different types of conditions and requirements that can change whether you’re looking for houses for sale, for luxury condos, or for special types of properties. These can include:
● Conventional loans: The loans are from mortgage lender institutions, including banks.
● Fixed and adjustable rate loans: Each of these options has its benefit, with a fixed rate loan being safer in the long-run, and adjustable rates offering the chance to save more in some situations.
● Mortgage term-based loans: This option allows you to choose between several terms. If you want to pay over 10 years, your payments will be larger but your interest will be smaller, and vice versa for a 30-year option.
● Private mortgage loans: These loans are a little different, as it involves a contract between a borrower and lender in an unregulated industry. The perks can include shorter terms and interest-only payments (leaving the principal untouched), and they require different criteria to traditional lenders. The downside tends to be higher interest rates, but, either way, it can be a great option for many.
First-Time Homeowners: What You’ll Need and What Steps to Take
When it comes down to buying your first home, there is a four-step process to getting you ready to shop for your home.
1. Get your credit checked—and in check.
2. Get pre-approved for a mortgage by a lender. This will give you an initial idea of how much you have to work with.
3. Determine the best mortgage for your goals.
4. Decide on a mortgage lender or a mortgage broker.
As with any large purchase or one that requires credit, you will be required to show proof of income stability, your credit and debt history, and sometimes other elements from your financial statements. This is true whether you’re shopping for a home in Burlington or browsing around for Mississauga condos—with a large purchase comes a lot of responsibility, and a whole lot of excitement and fun!
Upgrade with Oakville Real Estate
If you’re ready to shop for your first home, a great place to start is with any of the Oakville houses for sale. This local hotspot is close to the country’s largest airport, a hop, skip, and a jump away from Toronto’s many attractions, and is secluded in a beautiful, upscale waterfront neighbourhood. If you’re looking to retire or downsize, Oakville condos are a great option too. If you decide on the area, reach out to our realtors at Alex Irish where we specialize in local real estate, from Mississauga to Burlington. And remember, no matter where you are in the process, if you have a real estate question, let us know. We’re here to help!