As part of the home buying process for most of us, a mortgage loan will need to be arranged in conjunction with the purchase of a particular home. For many purchasers, this task can feel somewhat overwhelming, as unfortunately it feels as if this is a “learn as you go” process, and we often don’t know where to even begin. During this and future articles, I will try to provide information that many of my past clients found valuable when moving through the process.

There are many different mortgage options available, fixed rate vs. variable rate, open vs. closed, home equity credit lines, construction mortgages etc., and there are subtle differences often in how a client will qualify for some mortgages depending on which route they choose. As with the relationship between a purchaser and a realtor, the decision on which lender to use is also an important one. Rate and terms are certainly a consideration, but knowledge and expertise will provide a comfortable transaction and leave a client knowing that all options were presented and that the lender acted professionally and in “their” best interest as well.

Getting started… I recommend to all purchasers to obtain a full pre-approval either in advance of or at the beginning of a serious home search. During this initial meeting I like to separate the discussion into two parts. First, the clients qualifying information (employment details, earnings, assets / liabilities, credit history etc) and secondly, mortgage options including maximum qualifying amount, monthly payments, and what different products are available to select from. This is beneficial as the qualifying amount of the loan will be one of the key criteria of the property search parameters. As well, there will be a few decisions to make regarding the mortgage, and obtaining information early in the process allows purchasers to properly evaluate their options without any time pressures.

If a proper pre-approval is completed it will answer many questions and provide the purchaser with a solid foundation from which to move forward with the house search and mortgage decisions.

Submitted by:  Bert Czombos -  TD Canada Trust Manager, Residential Mortgages Windsor, Essex County - Tel (519) 948-3553 - fax (519) 948-7950 bert.czombos@td.com