Are you a first time buyer interested in a mortgage? Here is a brief summary of the information you need to know to get the best rates, fast!.

First, you will want to go through a pre-approval process. A pre-approval process is a quick way to get an idea of how much money you can borrow and that will allow you to look for a home within a price range. The pre-approval process is a preliminary process and an approval process follows :

• Example 1: Jim ignores the pre-approval process and looks for a home in the $300,000 range. Then, when it comes time to get a mortgage, he discovers that he can only get a mortgage for $200,000 and will need to go house hunting all over again!

 • Example 2: Jane goes through the pre-approval process and discovers the price range of the home she will be able to afford. She finds her perfect home then continues with the approval process. This process saves her time and effort!

The way to help you get a great rate during the pre-approval is through a…

You should seriously consider using a mortgage broker to acquire your mortgage. Banks are just one kind of lender, so when you go to a bank, you get their set of rates and their option of mortgages. But when you go to a mortgage broker, they shop around for you and find the best rates and terms to meet your needs.

 • Consider this: If you want lots of choice at a restaurant, wouldn’t you go to a buffet? A mortgage broker gives you access to a buffet of lenders.

One of the important elements that a mortgage broker will go through with you is an application. And this application includes a… .

Your credit rating is a vital part of the mortgage process and can be obtained by a credit reporting agency. A good credit rating (usually above 600, on a scale of 0 to 1000) will help you to obtain a larger mortgage at a lower interest rate with more attractive terms. A mortgage is still possible to get with a rating below 600 but the rates and terms will be less attractive.

• Remember: Lenders earn interest as their “fee” for lending you money. If you are more of a risk, they want a higher fee.

Your mortgage broker can help you acquire and understand your credit rating. If it is good enough to get a mortgage, the mortgage approval will come quickly. If the credit rating is not good enough, the broker can offer some suggestions to help you improve your credit rating. .

After you have a pre-approval, it’s time to go house-hunting! When you find your dream home, you put in an offer and pay a deposit. Then contact the lender and the approval process begins!.

Apply online or contact Nirpreet Thind at 416-826-7741 for a free, no-obligation consultation.

Apply online today… get approved today! .