Beginning to search for your dream home can be a lot more successful if you are already pre-approved for a mortgage. After all, it would be disappointing to look at a home only to discover you can't afford it. This is when it is important to take your time and shop around for the mortgage most suitable to your needs.
There are two main components to a mortgage; the principal and the interest. The principal is the amount you actually borrow, and the interest is what you are charged for borrowing it. The interest rate is always changing, and each institute has a different rate, so this is why it is important to look around, compare, and get the most for your money.
Features to Look For:
- Competitive interest rate: You may have the opportunity for a lower rate, but may lose the opportunity to get other features.
- Rate guarantee: This protects you from fluctuating interest rates until you have locked in.
- Payment options: Some institutes offer features with their mortgages such as double-up and skip, or principal payments on the mortgage anniversary date.
Most importantly, though, remember not to rush into any decisions. Although you may need to move fast in some cases, keep in mind that this decision will affect your finances for years to come.