What are my mortgage options?
A mortgage is a written agreement between you and the lending institution.
It is used to create a lien on your condominium so funds can be provided (in
the form of a loan), to purchase the property. Before starting on your search
for a condominium, we recommend you do three things:
- Contact a mortgage broker - A mortgage broker can explain the different
mortgage options, assist you in getting the best deal, and secure the loan.
They can help if you have experienced difficulty in securing a loan in the
past. A mortgage broker takes your loan application, processes the paperwork,
and floats it to several mortgage bankers at one time to ensure you are getting
the best deal.
- Getting Pre-qualified - There is a difference between getting pre-qualified
and pre-approved. Pre-qualification is an easy and simple process allowing
you to confirm how much of a mortgage you can afford. It can usually be done
online or over the phone with a lending institution. Pre-qualification saves
you the time and frustration of searching for something you can't afford.
However it does not mean that you are approved for a loan.
- Getting Pre-approved – Pre-approval is actually a commitment from
a lender to loan you a specific amount of money to purchase real property.
It is critical in the condominium buying process that you get pre-approved
for a loan, Condosource can help you through this process. The majority of
realtors and sellers will not work with you unless you can prove you are pre-approved.
Pre-approval also improves your negotiating position and shortens the length
of time to close.
Following are different types of mortgages available
Fixed Rate
Adjustable Rate
Balloon
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