Spring Home Mortgage Financing Season Is Upon Us
“Not To Early To Start Thinking About Your Residential Mortgage Interest Rate Strategy”
Ok, according to the calendar, I am a bit a head of the game here in the first week of March, 2011 to be talking about the start of the spring season with respect to home buying and the resulting mortgage financing requirements.
But here in Ontario, its certainly starting to look like spring more and more each day and all indications are that its going to be a very active spring market for home buyers.
What we’re also hearing in the news from the major banks is that they are starting to softly tell us little by little that interest rates are going to be on the rise by the end of May, 2011, or at least that’s what they are expecting based on the economic reports that are coming out of both Canada and the U.S.
So if you’re in the market for a new home, now’s the time to start thinking about your residential home mortgage financing requirements as well.
Did you know that you can apply for a mortgage prior to making an offer? This allows you to get a pre approval of mortgage financing in advance for a certain financing scenario. While the pre approval may not be completely binding on the lender depending on the exact property you choose to acquire, the process lets you lock in your interest rate for a period of 120 days.
This gives you 4 months to see where interest rates are headed, provide you with protection against an interest rate increase, but still allow you to take advantage of any drops in rates can may occur for short periods of time. For instance, there is market speculation that the two and three year mortgage rates may dip down in the next while despite the fact that the variable mortgage rate is expected to be on the rise.
Being prepared for spring home shopping includes getting your mortgage financing options in order.
This can greatly reduce the stress that can come with a home purchasing scenario when time lines can be short.
Doing some up front mortgage work can also save you some money potentially over both the short and long term, which is almost always viewed to be a good thing by home buyers.
Depending on your situation, there can be several different types of mortgage programs to work through such as an insured mortgage loan for higher ratio mortgages, a self employed mortgage program for those that work for themselves, and a home equity mortgage for individuals that have no reportable income available.
The best place to start the process is to select an experienced mortgage broker that you can guide you through your options and help you get everything ready so that when the time comes to buy, the financing part has
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About the Author Joe Walsh
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