Ready to begin the search for your perfect piece of Comox Valley real estate? Before you dive into hours of scrolling through homes for sale in the area, make sure you’ve obtained a mortgage pre-approval, so you have a realistic budget on hand to base your search off of.

 

Beginning your mortgage pre-approval can be a relatively quick process – sometimes as simple as filling out a form online. The ease of the application may depend on your financial history and the details needed to determine whether you can afford a property you’re interested in, as well as the level of risk of lending money to you. I won’t go too deep into the process, as it’s best to chat with a trusted mortgage professional, so instead, I’ll offer you these questions that you can ask your mortgage professional to ensure you’re doing your due diligence in educating yourself.

 

Which lender is best for my financial situation?

A mortgage broker is a licensed professional who has access to a diverse pool of lenders to find you an advantageous mortgage product. This means they’ll be able to shop the current market for you and negotiate the best mortgage for your individual needs. Alternatively, mortgage lenders work with a specific bank or financial institution which may be a benefit to you if you’d like to work with a branch or location that you know and trust.

 

Should I secure a fixed or variable loan?

Historically, variable interest rate mortgages have been lower than fixed rates. But with us currently experiencing unprecedented times, you’ll want to thoroughly review all your rate options with your mortgage broker.

 

How much should my down payment be?

Contrary to popular belief, you don’t necessarily need 20% as a down payment. Your mortgage professional will help you determine the best plan of action for the down payment amount that makes the most sense for your financial circumstances. Be aware that if your down payment is less than 20%, you will be subject to Canadian Mortgage and Housing Corporation fees.

 

Do the mortgage services cost me anything?

Typically, there is no fee for you to use a mortgage broker, as the broker gets paid by the lender or financial institution who ends up providing you with the mortgage product you choose. However, you will still want to ask this question, just to make sure there is no other arrangement you would be responsible for paying.

 

Is there a penalty for pre-payment?

Sometimes there are “hidden” fees if you attempt to make additional payments on your mortgage, so 

make sure you read all the fine print and ask your mortgage professional any additional questions that you need clarity on. If there is a penalty or additional fees, determine how much the penalty will be, what the terms are for the prepayment, as well as whether you’ll be charged a penalty if you choose to refinanced your mortgage in the future.

 

Once your pre-approval is in hand, we can begin the exciting journey of finding you the home that checks all the boxes on your list of must-have features! Give me a call at 250.702.6493 or shoot over an email to bryce@brycehansenteam.com for us to get started together.