Getting Your Mortgage

In this lesson we will explain the mortgage pre-approval process and what to look for when choosing a lender. Examine banks versus mortgage broker and provide some helpful tips

 Well,welcome to lesson two. Now you know how much you need down and how much to allow for closing costs.For example on a $200,000 purchase price 5% down would be $10,000 and closing costs of 3% would be $6,000 for a total of $16,000 required to purchase a $200,000 home.

Quick tip: An easy way to calculate your approx monthly pymts on a 25 year mortgage is $5 per $1000  eg: $200,000 would be $200x$5=$1,000 per month pymt (That's called principle and interest) then to calculate the taxes divide the annual taxes (say $2400) by 12=$200 then add to your monthly pymt $1000+$200=$1200 total monthly pymt(That's called principle,interest and taxes) NOTE: This is approx but close enough to go by when estimating how much house you can afford to buy.

Now let's talk mortgages. You need to get pre-approved before you start looking for a home for obvious reasons but most importantly the lender will hold your interest rate for anywhere from 60 to 120 days.What that means is your rate is held at say 3% and if before you close on a house the rate goes up to 4% the lender will still honor the 3% rate.If the rate drops to 3% you will get the 3% rate..That's a win win for you. 1% may not sound like much but 1% on a $200,000 mortgage is $2000 per year over a 5 year term that would be $10,000 .Better in your pocket than the lender's RIGHT ?? YOU BETTCHA !! Note: Rates vary based on your credit score. Any questions email

Now before you apply at any lender you need to make sure all your payments are up to date and any out standing issues on your credit bureau have been resolved.Do not and I repeat do not let any lender do a credit check until you are sure you want to deal with that lender.Each time you apply for credit you lower your credit score or beacon score. The higher your beacon score the easier it is to get a mortgage and the better interest rate you will get. Send us an email at and we will send you the links to check your own beacon score and credit at no cost and it won't hurt your score.

Banks versus Mortgage Broker

Banks only have their products and are usualy restricted by tight lending policies and lenders are salaried employees with no incentive to lend.If you do approach a bank try and deal with a mortgage specialist who makes a commission. Banks can do loan consolidations to help you qualify to buy a home.