Applying for Your First Calgary Mortgage

Posted by on Tuesday, June 26th, 2012 at 10:53pm.

Once you have made a final decision that you're ready to invest in a home you may not know where to get started if this is your first Calgary mortgage. Mortgages can seem almost threatening if you've never had to work with one before since they are a long-term commitment involving a lot of money. Here are a few basic things you should know about mortgages. The more you learn about them, the less fear there will be.

Your local bank

If you have a bank that you have been dealing with for years it makes a lot of sense to approach them first for a mortgage. If you have good credit and have been keeping up with your banking commitments, you may have a slight edge by dealing with your own bank. Sometimes when the answer could go either way between an acceptance or a rejection, the bank will look into your personal records to make a final decision. If you have been a long-term customer and show that you can be trusted, you’ll often have a better chance of getting a loan with your bank.

Mortgage brokers

A mortgage broker will sit down with you and have a talk about the different types of mortgages available, the advantages and disadvantages to each and give you helpful suggestions. Once you have determined the best type of mortgage, according to your own personal circumstances, the broker will look through the various mortgages available to find you the best deal.

A broker has access to a lot of various sources of funding and may be able to pull together a mortgage for you that will end up saving you thousands of dollars down the road. Since a home loan involves so much interest over the years, even a slight improvement in the mortgage rate can translate into a lot of money saved down the road.

Direct lender

For the most part this refers to friends or family that are willing to loan you the money to buy your home. If this possibility ever arises you need to make sure that everything is worked out in the contract so that it can be referred to later on if need be. Many relationships have been broken over money deals and the best thing you can do to protect yourself against that is to put everything in writing.

Credit unions

Sometimes you can receive a better interest rate or mortgage terms by dealing with a credit union. You have to apply and qualify to join one, however, but it may be worth it if you can end up with the type of mortgage you want at a reduced rate.

Be careful when working with financial institutions that are based online. While most are legitimate, there are some that aren't. The best way to find out whether you're dealing with a legitimate source is to look for their address and phone number on the website. An operation that is on the up and up will have a physical address listed that you can verify on your own.

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