Shopping for a mortgage? Ask these questions first

At last week’s CREB Forecast, a look forward at Calgary’s real estate market was unveiled, and between all the perceived negativity in the media, there were two key trends that greatly benefit homebuyers: affordability and selection.

A recap:

• Homes will be more affordable. CREB predicts the annual benchmark price this year to drop to $438,652, that’s a drop of 3.4%.
• There will be more selection for buyers. With completions in the new housing sector coming onto the market this year, inventory levels will actually increase this year, which is helping to contribute to the lower home prices this year. But what this really means for buyers is that they have more options to choose from (more bang for your buck).

Before you even pick up the phone to call a lender, give some thought to your financial situation and needs, both short-term and long-term goals. No lenders can provide the best mortgage without first understanding your needs and goals. And they’ll never understand your needs unless you can explain them clearly and concisely.

What I’d suggest is that you sit down with your spouse and consider some of the following issues. Only then will you be able to answer the questions any responsible mortgage advisor will ask in order to help you choose the right mortgage.

So if you want to take advantage of the buyer’s market this year, make sure you ask yourself these questions before meeting with a mortgage broker.

• How long are you planning to live in this home?
• How are your finances likely to change over the next few years?
• Which are you more comfortable with: mortgage payments that always stay the same OR payments that rise and fall with the Prime rate?
• How soon would you like to be mortgage-free?
• When will your children be entering college or university?
• When are you thinking of retiring?

A mortgage will ask you a lot of questions in order to narrow down the options and select the right mortgage to compliment the strategy laid out for you and your family. But if you want to make sure you have the very best mortgage advisor who with see your goals to fruition, you should answer these basic questions too.

Want some further guidance? You can download my free e-book here, or feel free to contact me anytime.

Tags : calgary home buying, calgary homebuying, calgary mortgage, calgary mortgage broker, calgary real estate