When to Speak to a Mortgage Professional

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Are you getting ready to buy a home, or at least thinking about purchasing a property? If you are, then you know that at some point, you are going to need to speak with a mortgage professional in Edmonton. The big question for many is when they should start to consult the professional. The answer, in just about every case, is going to be that you should speak with them as early as possible in the process. There are some very good reasons for this, too.

Do Not Fall in Love With the Wrong House

One of the problems that many people have when they are looking for a house is that they find a property or several properties, that they love. They have their heart set on getting those homes, and then they talk with the mortgage professional and find out that they are not able to qualify for a loan that is large enough to afford those properties. This leaves many to feel depressed about their home buying journey.

Even before you start looking for a home, it is a good idea to speak with a mortgage professional. It means that you are not going to waste your time and energy on a property that you do not have a chance of affording.

The Mortgage Professionals Help You Prequalify

When you talk with the professionals, they will help you to determine just how much of a loan you are able to receive. You will have a prequalification amount that you can then use as a guideline when you are looking at properties. This will let you know just how much house you will be able to afford. It ensures you do not start looking at properties that simply are not going to work for your finances and saves you from some heartbreak.

There is another benefit to prequalifying. When you can tell the seller that you are prequalified for the home, it shows them that you are serious about getting into the property. They are going to be more willing to negotiate with you because they know you can get the loan that’s needed for the home. You will look better to the seller, which means that they might be more willing to work with you than a buyer who is not prequalified, even if the other buyer says that they will pay more.

One of the important things that you will want to remember when you are prequalifying for a loan is that just because you might be able to qualify for a large loan, it does not mean you have to spend that much. You only want to take out a loan that you are certain you can pay back, and that will not negatively affect your finances on a monthly basis.

Work With the Best Mortgage Professional

There are many companies offering help with mortgages today, but you need to make sure that you are working only with the professionals. Take the time to learn more about the company or individual you are considering working with. How long have they been working in the field and what type of experience are they offering? What types of services does the company provide? Learn more about their business and how they operate, as well as their reputation when you are choosing your mortgage professional.

The sooner you speak with a mortgage professional during the home buying process the easier it will be to know what you can afford. Get in touch with the pros now so you can find the home of your dreams as soon as possible.

A Simple Guide to Understanding Why Mortgage Rates Go Up or Down

You have probably noticed that the mortgage rates are not static. They are going to go up and down, which can be difficult to follow and understand. There are many different factors that can affect the rates, and those who are considering getting a mortgage are going to want to have a better idea of what types of things can cause shifts in the mortgage rates.

Economic Growth and Economic Indicators

The economy is the biggest factor that tends to cause changes in the mortgage rates. Growth in the economy can cause the interest rates to rise or fall. These rates are then mirrored by the mortgage lenders to make sure that they are able to stay profitable. When the economy is doing well, it means that the level of interest rates in the country is typically going to rise. When this happens, it means that the mortgage rates are generally going to rise, as well. Conversely, when there is trouble in the economy, it means that the mortgage rates are going to drop, just like the interest rates.

One of the main economic indicators that is used to determine what will happen with the rates is federal funds rate. Some of the other indicators that are used when determining what will happen with the mortgage rates include the producer price index and the consumer price index.

Supply

The policies in the government can cause fluctuations in the mortgage rates. If there are a large number of loans in a short period, the number of mortgage-backed securities can become higher than the demand. It can cause the interest rates to rise, and they are going to need to come down again to keep buyers interested.

The Federal Reserve is responsible for controlling interest rates and keeping inflation in check. They do this by adjusting the supply of money that is in the economy. If the economic growth, discussed earlier, creates too much inflation, there is a risk that the purchasing power is going to drop. To prevent this from happening, the Federal Reserve purchases Treasury Bonds. The added money from this influx can help to lower the interest rates.

Changes in the Real Estate Industry

You will find that the mortgage rates can be affected by happenings in the real estate industry, as well. When the demand for mortgage borrowing increases, based on an influx of new homes on the market, it can cause the mortgage rates to rise. When there is a weaker demand for new mortgages, it will typically cause the rates to fall.

The above include some of the largest factors that will affect the mortgage rates as they rise and fall. As you can see, there are many factors that can play a part in the mortgage rates. The lenders pay close attention to these factors, and this is something that you should pay attention to as a homebuyer, as well. It can become complicated to understand all of the ins and outs and just why the rates rose or dropped but having at least a basic understanding of the various things that can affect the rates will be helpful.

Naturally, when you are looking for a mortgage, you will want to make sure that you check the rates. If they are currently too high, it might be in your best interest to continue saving for a while and then get your loan when the rates drop a bit. You can – and should – speak with a mortgage professional to learn more about getting a mortgage.