Before beginning the process toward getting a house mortgage, you should first find out if you qualify and for how much. By doing this, the sellers and real estate agents will know you are serious about buying a home and will pay you special attention. One of the preliminary ways to find out how much you qualify for is to use a house mortgage calculator. Canada has lots of calculators at your disposal.
How to Use a Mortgage Calculator
The calculator itself is actually very simple to use. It’ll ask you for some basic financial history and the size of your down payment. Some calculators will get more in depth, such as asking for liabilities and assets or your income. For the calculator, it doesn’t need to be exact; a rough estimate will do; however, the more precise you are with it, the more precise it will be with you.
Feel free to play around with the numbers a bit, in order to get a better idea as to what you can afford when you go to look for a house.
What Will the Calculator Tell Me?
Once you input your information, the mortgage calculator will come back with some figures. The very first one should be how much of a monthly payment you can reasonably expect to afford. After that, you’ll see the potential purchase price, interest rates, and other numbers that will be helpful toward you purchasing a home.
Most mortgage calculators will also give you an idea of any other fees to expect – ones that you may not have thought of before. For example, it will let you know if you need to worry about getting mortgage insurance, which is required if you have less than 20% of the price of a home for a down payment.
Am I Pre-Approved for the Price on the Calculator?
No. The mortgage calculator cannot pre-approve you, mostly because the calculator is taking you at your word as far as your financial history and other factors. To be officially pre-approved, you need to talk to a lender or a broker and actually submit all of your paperwork to be considered.
The mortgage calculator can, however, give you an idea of where to start when you look for a house. You can start searching for houses in that price range and see if you want to start the pre-approval process or if you feel like you should wait and save a little bit first. It’s a handy little tool that takes less than five minutes of your time.
If you’re interested in checking out a calculator for yourself, of if you have any other questions about house mortgages, be sure to visit www.mymortgagebroker.com. Steven Crews or his staff can help you every step of the way.