I would be remiss in writing an article about how to choose the perfect mortgage broker without first discussing rates. The first question most people ask when shopping for a mortgage is what are your rates. Rates are very personal. A great deal of information is needed in order to quote factual rates. Loan-to-value, debt-to-income, credit scores are just a few of the many factors that will affect the rate available to you. Furthermore, looking at advertised rates in the paper, internet and rates advertised on the radio are designed for one thing and that is to get you to call. So what are you supposed to look for when choosing a mortgage broker?
Just because you can borrow a certain amount of money, doesn’t mean that you should borrow that amount of money. You’ll want to determine how much cash you’ll have to invest in your mortgage each and every month for the duration of the loan. Remember you’ll also need to pay property taxes and home owners insurance each year as well.
A finance company in Chicago was owned by H. G. Heller, which is a huge finance company owned by the Fuji Bank and, at that time, was the biggest bank in the world. The guy at Abacus quoted me right over the phone. He says, “I’ll follow this up with a fax and then I’ll ship documents to you. If you fill them out and ship them back immediately, I can have a commitment for you within 10 days.” I said, “Wow!” Now, if I’d been going through my mortgage brokers vancouver bc, that would have cost me a point-and a point on $3,200,000 is $32,000.
Luckily home mortgage companies are very competitive, and they want to do business with you and they do not mind competing for it, let them. On the internet there is a lot of companies represented, and it is fairly easy to track down a home mortgage.
A good rule of thumb is that your front end ratio should not exceed 28% of your gross monthly income and your back end ration should not exceed 36% of your gross monthly income.
Remember that he talked about how your new home would be such a great asset for you. Anything to get you thinking you could not possibly afford your new home without his help, and that it would be your greatest investment.
Of course, in order to make sure that your criteria will be met, you have to conduct a home inspection. Hire a professional to do the inspection in order to assure that things will work well and good.