It is not simple to buy a home especially if you don’t have sufficient amount. Most of the people use the option of mortgage to buy home.

1. BASIC MORTGAGE TIPS FOR BEGINNERS

2.  It is not simple to buy a home especially if you don’t have
sufficient amount. Most of the people use the option of
mortgage to buy home. If you need mortgage, it is necessary
to look for best mortgage rates in the market. In order to
acquire perfect mortgage, you should know basic tips and
tricks of this process. You will find thousands of lenders and
firms in the market who can offer you mortgage. In order to
receive the best rate, it is necessary to shop around in the
market. When you meet with several lenders, you will know
their terms and conditions. Hence, you can compare the
packages offered by lenders in the market. The basic steps to
qualify for discounted and economical mortgage rates are
following.

3.  Credit score
 It is a very important factor that can affect the value of
your mortgage rates. It is reported that credit score is
inversely proportional to mortgage rates in the market.
Increase in the value of credit score can reduce the value
of mortgage rate. Similarly decrease in credit score will
raise the mortgage rates. Hence professional always
recommend keeping the credit score high to acquire best
deals in the form of discounted mortgage rates.

4.  Origination fee
 When you apply for mortgage, lender will ask you to pay
some origination fee. The value of origination fee may be
different because each lender has its own requirements.
Keep in your mind that this fee can affect and influence
your APR. The normal value of this origination fee is 1%
but it can increase and decrease. It is necessary to
negotiate with lender to reduce the value of origination
fee. You can meet with multiple lenders to acquire the
best conditions for you. Now the presence of internet has
made it simple to compare the mortgage rates and
origination fee online.

5.  Flight and move
 If you have made a particular deal with your lender and
mortgage rate drops during this time, you can use the
option of flight. It means, you can ask the lender to
reduce the value of interest rate according to current rate
in the market. This process will take some time in
negotiation but you can find fruitful response in return.
Your lender will not leave you because he wants your
business. If lender is not ready to reduce the mortgage,
you can move to another lender for this purpose.

6.  Lock in the rate
 You should request your lender to lock in the mortgage
rate for few months so that you can have peace of mind.
The rise and fall in the Canadian mortgage rates will not
affect your package in this condition. Once your
mortgage rate is locked in, it cannot increase or decrease
in future time. This package is offered by some particular
lenders. Hence you should ask about this package to
your lender in advance. You can also use the online
platform to do some research about it because lenders
also have their own websites.