6 Critical Questions to Ask Before You Get a Mortgage
Before you even pick up the phone to call a lender, give some thought to your financial situation and needs, both today and in the future. No lenders can provide the best mortgage for you without understanding your needs. And they’ll never understand your needs unless you can explain them clearly and specifically.
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What I’d suggest is that you sit down with your spouse and consider some of the following issues. Only then will you be able to answer the questions any responsible lender will ask in order to help you choose the right mortgage.
How long are you planning to live in this home?
How are your finances likely to change over the next few years?
Which are you more comfortable with: mortgage payments that always stay the same OR payments that rise and fall with the Prime rate?
How soon would you like to be mortgage-free?
When will your children be entering college or university?
When are you thinking of retiring?
OK, now that you have your needs and goals in mind, you’re ready to start making some calls. As I said, any responsible lender will ask you a lot of questions in order to narrow down the options and select the right mortgage for you and your family. But if you want to make sure you’re getting the very best deal available—after all, that’s exactly what you deserve—you have to ask some questions too.
Your mortgage can also help fund your child’s education. You can free up money for your yearly RESP contribution by taking advantage of many mortgage lenders’ ‘skip a payment’ feature. Or when the time comes, you can do an equity take out to cover tuition fees so you end up paying affordable mortgage rates instead of expensive consumer loan rates.
For more tips and ideas on how to use your mortgage strategically, talk to us today at 519-624-9222.