The mortgage process can seem complex and lengthy and, for especially first-time home buyers, could seem intimidating. However, the mortgage process can be smooth and timely, if you’re prepared from the start. Petal Hall, sales executive at The Jamaica National Group shared some tips to guide you along your journey.
Check on your financial health
- Budget, save and reduce your debt
Preparing for a mortgage means doing an assessment of your savings, debt and future obligations, which could affect how much you can afford. You may need to manage your expenses so that you can save more to finance your deposit and other mortgage-related costs, as well as reduce your debts to make room for future mortgage payments and other housing costs.
- Check your credit score
A check on your credit history is among the first thing lenders will do to determine whether you have a good financial footprint and repayment history. Therefore, you should check what’s on record about you. The better your financial footprint and history of repayment, the better your score and easier it will be to negotiate the rate you desire.
- Get pre-approved by a mortgage institution
The pre-approval process is about looking at your total financial health and this will tell the realtor or vendor what you can afford to pay for a mortgage. This process is free.
Start the process!
- Do your homework
A mortgage is a financial commitment that a homeowner often must live with for years, so it’s important to research loans, rates and brokers exhaustively before signing or committing to anything. You’ll want to shop around to find the financial institution that meets your needs.
Ms Hall advises that: “You need to ensure that the mortgage provider you choose is looking out for your best interest, and they will make the process easier, not more stressful. For instance, we will guide you every step of the way and we offer a variety of mortgage options. You will also have access to other products and services that you’ll need as a new homeowner, such as insurance, at good rates.”
- Get organised
Lenders tend to require a lot of documentation as part of the mortgage approval process, so it’s a good idea to gather everything before you’re ready to apply. When you get to that stage, you’ll be able to hand over all your paperwork to your loan officer at once, saving you time to focus on other important matters.
