Aside from being the biggest financial decision you’re likely to ever make, mortgages are extremely complicated. There are enough choices, terms, fees, documents, rates, down payment options, etc. to make your head spin. And if you happen to make the wrong decision about even a tiny part of your mortgage, it could end up costing you thousands of dollars!
For instance, you might be tempted by a low rate that could actually cost you more down the road because it comes with restrictive pre-payment options and penalties. Similarly, you might qualify for today’s rate without thinking about how much higher that rate is likely to be when the mortgage renews in five years. Suddenly, you may not be able to make your payments!
Another common pitfall is forgetting to take closing costs into consideration. To cover these fees, you need to have saved at least 1.5% (1.5% is a guideline) of the price of the home. Then there are moving and redecoration costs that also have to be budgeted for.
The question to ask yourself is, “Do I really have the knowledge, skills, time and energy to handle this by myself?”
Fortunately, there’s a no-cost alternative that can make the whole process a lot easier and more affordable. By using an Alberta planner, you have a seasoned professional on your side to provide the information and guidance you need to make the most cost-effective decision. Your mortgage Alberta planner will analyze your needs, then help you choose the rate, term, amortization and down payment that are best for you and your family.
As your Alberta mortgage planner, I’m committed to helping home buyers become fully informed BEFORE they start shopping for a mortgage. To that end, I’d like to share with you my shopping around form, which lays out 4 critical questions to ask your mortgage provider (bank or broker). Once you’ve read the shopping around form, you’ll have all the tools you need to make an intelligent decision as to who to award the privilege of managing you mortgage.
