3 Tips on Negotiating Your First Mortgage
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So after putting in a lot of work, you're finally ready to become a home owner. You've raise enough cash for a down payment, paid off all your debts, toured open houses and found the perfect home. And now that your offer for the home has been accepted, you have about 60 days to close the deal, so you starting arranging for your mortgage. Lots of people start researching their mortgage options only a few weeks prior to closing, which is hardly ever sufficient. When it comes to mortgages, you will need as much information as possible in order to make an informed decision. Here's a good read about Home loan calculator, check it out!
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Here are a few things to keep in mind when negotiating your mortgage:
Prepare early
There are a number of things you will need to prepare for early. These include tax assessments from the past two years, an up-to-date credit score and a comprehensive accounting of your earnings. In addition to the down payment, you'll also need some cash to pay th closing fee, which should be about 2% of the closing price. Remember to also budget for utility deposits (as well as maintenance costs if you're buying a condo.) Learn more about Home loan calculator, go here.
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Take time researching your options
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As earlier mentioned, a lot of people do not set sufficient time to research on their mortgage options. To be able to get a good deal, you may want to get familiar with mortgage basic--find out how a variable-rate mortgage is different from a fixed-rate mortgage, and how an open and closed mortgage compare. So many people will automatically sign up for a five-year fixed-rate mortgage without researching on the terms offered by different lenders. This means they're unlikely to be aware of the better deals out there when taking the mortgage. Working with a broker helps, but keep in mind that brokers get paid by the bank they bring the business to, and not by you.
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Consider what works best for you
If you're getting promoted at work and have to move to another city, or you're just starting a family, you may need to upgrade sooner than you imagine. Unexpected events such as divorce or serious illnesses may mean having to pay a huge break fee--the penalty for abandoning the mortgage early. Most lenders won't make it easy for you when you want to leave your mortgage, so be sure to probe your lender about the break fee. Kindly visit this website https://www.britannica.com/topic/mortgage for more useful reference.