Buying a home is one of the biggest events in most people’s lives. It’s the largest financial investment most people ever get to make, and the emotional charge that comes with buying a home for your family to live in cannot be overstated. Given all that’s involved in home ownership, it isn’t surprising that the path to a home of your own is strewn with pitfalls. By preparing well in advance, and by taking certain precautions, you can make the process go forward with a minimum of delay and unnecessary expense.
Before you start the application process, there are things you can do to improve your lending profile. While individual mortgage lenders vary, most have similar requirements for borrowers. Your Relationship Manager at WQ Home Loans will ensure that the the requirements for your home loan are communicated to you clearly so you know what is provided for your own personal situation. They will help you with sounds advice to ensure your application has the best chance of being approved in a timely manner.
Once your documents have been gathered and you’ve set your heart on a home, it’s time to apply for financing. Your Personal Relationship Manager will work with you to develop a picture of your current finances and understand any special needs you bring to the transaction. Depending on your situation, you might be offered any one of a range of loans, including:
Fixed rate loan
This is a home loan with a single, unchanging interest rate. This rate can be somewhat higher than other types of loans, but it comes with the stability of a predictable monthly payment amount over the life of the loan.
Split rate
A split rate combines the strengths of fixed and variable mortgages into one loan. Typically, a split rate-or combination—loan amounts to a 50/50 split, with 50 percent of the principal to be paid back with an adjustable rate and the other 50 percent being offered at a fixed rate. The advantage of this plan is that it acts as a hedge against sometimes unpredictable interest-rate fluctuations by diversifying within a single loan.
Adjustable/Variable rate
These loans charge interest rates that can be altered over the life of the loan to reflect higher or lower risks. Some buyers prefer adjustable rates for their flexibility. This type of loan is also valuable for its typically low introductory rates.
Regardless of the type of loan you’re looking for, it’s always a good idea to work with experienced mortgage brokers throughout the process. Buying a home, especially for the first time, can be complicated and confusing. Partnering with an expert early in the process ensure that help with your questions is never more than a phone call away.
