What is a Pre-Approval? Getting pre-approved is an important first step whether you are considering your first purchase, transitioning into a new home, or even renewing an existing mortgage. A pre-approval means that a lender has stated in writing that you qualify for a mortgage based on your current income and credit history. It will specify a term, interest rate, and mortgage amount that you qualify for in advance of your home shopping. Pre-approvals are good for up to 120 days and will protect you from any interest rate increases that may occur at that time. Trust us when I say that getting…

What is a mortgage? A mortgage refers to the loan that is secured to real estate. It’s comprised of two parts: the principal, which refers to the amount initially borrowed; and the interest, which is what you pay the lender in exchange for the loan. Mortgage term and amortization Amortization refers to the total number of years it’ll take to pay off your mortgage. The term is the length of time you are entering into a specific agreement with a lender. The most common term length is 5 years, but many options are available. Conventional vs high-ratio mortgages When your down payment is 20% or…

If you are building a new home, it is important to speak with your builder to determine the type of financing that is required. It will generally be one of the following two options: Completion Mortgage This type of mortgage is approved with a lender before the construction of your home is complete. You will pay a deposit upfront to your builder; however, you will not make any mortgage payments until you take possession. As with any new home purchase, you will need to avoid doing anything that could change your financial position or your credit score prior to taking possession, such as…

Buying an investment property is rapidly becoming a preferred investing method. Real estate values usually rise as time passes and is considered a secure option. With a low risk – high return value, you and your family may be considering it as an additional source of income and a great way to build equity. When purchasing an investment property, there are several questions you need to ask yourself. Are you purchasing a fixer-upper as an investment? The condition of the property you want to finance matters, if it is in poor condition it could be hard to arrange mortgage financing. Are you…

As you approach the end of your mortgage term, be sure to contact me first before signing your lender’s renewal offer. There are no costs to switch your mortgage at renewal, so why not take the opportunity to find the best product for your needs. With my expert advise and access to many different lending options, I can compare the best products on the market to ensure your new mortgage fits with your financial goals.   Start Planning Early Contact me up to six months before your mortgage maturity date. My agents will meet with you to review your maturing mortgage and offer complimentary advice…

What is it? Refinancing a mortgage replaces your current mortgage with a new one, this includes a new term and interest rate. You can also renegotiate a longer amortization and access additional funds. This allows you as a homeowner to access as much as 80% of the appraised value of your home. Mortgage Design Group is here to guide you through the entire process. Some reasons you may consider a refinance are Reducing your interest rate to lower monthly payments. Access your home’s equity to help finance large projects or purchases. Increase the amortization to reduce payments. Consolidate high-interest credit cards or other consumer debt. What to consider When…