Why are monthly payment calcualtions important?
With your monthly mortgage payments calculated, you’ll have a better understanding of what price range to shop in. It’s important to consider your other debt obligations and your income in the bigger picture. You’ll need to have some general information to put into the calculator like interest rate, amount of the loan, the down payment amount, and the length or term you are planning to borrow money for. Additional home ownership costs can include your property taxes, homeowners insurance and monthly utilities.
Is it a good idea to inquire about a mortgage first?
Yes, that’s if you’re planning for a smoother transaction! Save time by getting your financing in place before you look for a home. Meet with a mortgage broker to arrive at a comfortable price rang and ask questions about the loan process.
Pre-qualification or pre-approval, what is the difference?
Pre-qualification means you are potentially qualified for an amount, but that a verification process is still required by your financier. To potential seller, a pre-approval is more appealing. To get pre-approved, a detailed background and financial check is made, including tax returns, credit check & income history are required. You’ll then get a letter from the lender stating the amount you’re qualified for. Valid for a set period, this commitment by the bank is usually about 60 days.