One of the biggest financial transactions you’ll ever make in life is buying a home. It’s important to know every option available in order to fully maximize your investment.
After you’ve decided which financial institution will be handling your mortgage, it’s a good idea to set up a meeting with one of their mortgage advisors. He or she can help you determine the type of mortgage that best suits your personal needs, in addition to calculate how much money you can borrow.
You should take documents that reflect your income and the amount you spend on average each month with you. This information will more than likely be verified later through credit checks (when you officially apply for a mortgage loan), but having bank statements or wage slips with you will help the mortgage advisor determine how much you can comfortably borrow. You may not need the maximum amount you are able to borrow, but this figure is often helpful when looking at potential properties.
It’s also extremely helpful to fill out a monthly budget plan prior to the meeting. You may be fairly certain how much money you spend, in relation to the money you bring in, but a monthly budget can shed light on areas you may have overlooked or failed to factor into your equation. It’s important to consider the new mortgage payment amount, as well as any potential increases to your monthly bills, if upsizing, to calculate an appropriate amount you can afford.
A meeting with a mortgage advisor is also the perfect opportunity to learn more about the mortgage lending process and what types of deals may be available to you. It’s important to consider every factor to determine which type of mortgage is best for you. Take your time, ask a lot of questions, and decide when YOU feel comfortable.