I’m getting married in a couple of months. Now we live in a rented condo and my mom is keep on telling me to buy a condo. It was her dream to buy a condo before my marriage. So I’m thinking about taking a mortgage for buying a house. I don’t know what all procedures are needed for taking up a mortgage and also don’t have an idea about any mortgage lenders. I asked my friend about it and he told me to hire a mortgage broker so that it would be easier to find a mortgage lender. Need to know more about mortgage brokers and how much will they charge?
This seems like a really bad reason to get a house. You really need to seriously think about why you actually want to own a home.
A broker can shop around and find you the best rate. They also have the ability to pile more money up front on your loan to reduce your rate.
At the same time though if you did your own background research on banks you could could save yourself money.
We went through our thought proccess when buying our home, you can read all about it here.
my mom is keep on telling me to buy a condo.
This seems like a terrible idea. If this is not what YOU guys want, don’t buy anything.
Renting is perfectly fine and never feel rush to jump into real estate. Owning a house is a BIG deal and it is not something you do just because your parents think it’s a good idea.
hire a mortgage broker
Yes, brokers usually have better rates than the banks. You shouldn’t pay for one. They are usually free to use and get a cut from the mortgage lender. When we were comparing, the local broker was at 2.60% and our bank was offering 2.84%.
I have to agree with the others. Do not buy a house/condo at the insistence of someone else…yes, even your mother! I am sure she has the best of intentions, but again, it was HER dream not yours. This is a great time to start researching the idea of buying a home, but not necessarily take the steps to buy. Asking questions is awesome and reading more about the process is a great start. If you want to know what not to do, feel free to read all about my mistakes in real estate here…
Good luck to you both and feel free to reach out at any time!
Here are some questions you should ask when checking out a mortgage broker:
- How big is the company?
- Are they registered with a professional association?
- Do they have any reviews?
- How can they be contacted?
- How detailed is company information on the website?
This article might be helpful to you https://www.mycheckweb.com/right-way-choosing-reverse-mortgage-lender/
Nothing wrong with renting. Don’t buy until you’re ready. Regarding mortgage brokers, their fees vary. If you find a good real estate agent to work with, usually they’ll be able to give you a few referrals. Shop around until you find someone you feel comfortable working with. Good luck!
Don’t do anything that is not good for you financially.
A good mortgage broker is FREE, they get paid by the lender they refer you to.