What can you comfortably spend each month?
Before comparing mortgages, work out what you want left for everyday life. Allow for moving, repairs and unexpected expenses too. The most you could borrow may be more than you want to spend.
Compare the mortgage, not just the rate.
Ask for written quotes that let you compare fees, payment options and the cost of ending the mortgage early. The term is the contract period; amortization is the estimated time to repay the loan. Ask your lender how a fixed or variable rate, or a future move, would affect your mortgage.
Find out what you’ll pay, and when.
Get estimates for legal work, applicable taxes, appraisal, insurance and closing adjustments. Ask which amounts are due now, at closing and each month. Keep calculator estimates separate from a lender’s quote, and check any rebate eligibility with the right adviser before budgeting for it.
What does mortgage preapproval tell you?
Preapproval helps you plan, but it isn’t final mortgage approval. Ask your lender what still needs checking for the home you choose and what could change the amount. Keep Sue updated before deciding on an offer and its financing deadline.
Keep the paperwork organised and private.
Use your lender’s checklist and secure document channel. Find out who to contact and whether there are fees, respond to requests promptly and keep confirmations. If your job, borrowing or down payment changes, check with the lender before relying on an earlier figure.
Confirm the final arrangements before closing.
Ask your lawyer and lender what documents or funds are still needed and when. Verify transfer instructions by calling a trusted number. Leave room in your moving plan for a delay, and wait for confirmation that closing is complete and the keys can be released.
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