Finding a Mortgage

As you prepare to buy that dream home, what is the first thing that comes to your mind? Iam sure it is regarding how to finance the purchase.
And if you are not in a position to finance it entirely yourself and have to resort to a mortgage option, it only makes the entire process more complicated.
How many times have you searched for that perfect mortgage lender? Newspapers and internet sites will give you countless options to choose from, but can you leave you utterly confused as to whom to go with.
In this position, what do you do? It is always a wonderful option to go around town and talk to different lending institutions about the different mortgage options that are on offer in the market.
If you do not enough time and energy to do this, it is also a good idea to engage a real estate broker to take care of this exercise.
If you can clearly spell out your terms and capabilities, he can do the bulk of hunting for you, so that at the end of the day, he brings only those options which fall into the bracket of your choice.
Check out the different rates of interests on offer and even down payment options that the banks insist on.
These can make a lot of difference to your budget.
Ask for the availability of additional features in the loan like top up of existing loan after a certain time period or switching of interest rate types between fixed and floating and related charges.
Tenure of repayment is also important.
A longer tenure can result in more interest being paid but gives you the option of a lower monthly payment.
It is vital that you make up your mind on this.
Another aspect is the additional charges applicable with regard to processing and pre-payment, and can influence your final choice.
A few factors like availability of electronic clearing systems, a legal team from the bank to help you clear regulatory approvals and appointment of a specific officer to take care of your needs are some of the value added features that tilt the choice in the direction of a specific bank or institution.
When you finally decide to stick with a specific bank, ensure that you scan all related papers before signing any documents as this is one relationship that can last for a long time and any lapses can make life miserable for either parties.
As you prepare to apply for the mortgage, make sure your credit report is in good state, as any defects can lead to adverse results, and even end up blocking the mortgage.
If you have a pre-qualification letter to back you, it can work wonders in getting the approval as early as possible.