In this day and age, its all about immediacy… getting things done when you need them without a whole lot of wasted effort.
And typical of the times, when it comes to getting a mortgage in place, the average Canadian will tend to leave the process as long as possible, perhaps holding the belief that there is no real or potential benefit from planning ahead.
But when you consider the amount of money you’re going to shell out on a mortgage over time, even the smallest benefit incurred in the short run could add up considerably over time.
Let’s go over some specific reasons why planning further ahead can be beneficial when it comes to your future residential, commercial, or industrial mortgage.
First of all, there is knowledge. Taking the time to understand the different types of quotes interest rates, payment frequencies, amortization, repayment terms, mortgage insurance, etc. can help you make a more informed decision that will save money over time. None of these items are overly complex to understand, but collectively its still a lot of stuff to wade through.
Second, locking in an interest rate for at least 90 days provides you with more potential decision making flexibility with respect to rate when the day comes that the mortgage needs to be finalized. But this isn’t going to be much of an option if you’re not planning far enough out to take advantage of it.
Third, for certain types of applications like a construction mortgage, the process for applying, approving, and managing this type of mortgage can take some time to understand and apply knowledge. By being armed with what to expect and how to proceed prior to starting construction can make a cash saving difference when issues arise in the middle of your project.
Fourth, and perhaps most important is that the standard mortgage process always seems to take longer than anticipated. Stuff happens that causes delays or issues that need to be resolved before a closing can be completed. This can be a hairy time for the borrower if there is a time pressure involved in the closing process. Starting sooner can alleviate much or all of stress and help to get everything completed on time.
If you buy into this argument but are still not sure where to start, then the best first step is likely going to be selecting a mortgage broker (mortgage coach) to work with. The more time you give a good mortgage broker, the more likely they’re going to be able to deliver added value to you for no extra cost.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel