Buying a home is a very emotional time in life, and we at Blink know that there are a number of decisions that cause large amounts of stress. One of the best ways to reduce stress associated with confusion is through education. We want our readers to be totally informed throughout the mortgage process so you are aware you are doing everything possible to get the best deal you can.
This is one of the major questions we kept asking that led to the creation of Blink. There is so much confusion related to loans and the home buying process, most of all it is not something that is taught in our school systems, even for those who choose to study business related post secondary programs!
Personal finance can be an extremely touchy subject mainly because it affects us all and can take a lifetime to master. At Blink we are major admirers of programs that teach financial literacy to students of all levels.
Though the idea of putting a down payment on a house is far from the minds of grade 11 students, credit card and student loan debts are topics that will very quickly become important.
When the time finally does come for young people to invest in real estate, if they enter the market carrying large amounts of debt they will certainly add even more stress to the already confusing experience.
Why would anyone want confused homebuyers? It seems so counterintuitive! Don’t informed purchasers make better decisions?
One of the major reasons banks like to keep homebuyers in the dark is so they can only show one posted rate, which is usually much higher than the rate offered by broker-only (monoline) lenders. We at Blink want to provide transparency to our customers and compare multiple different rates so customers can shop around while being well informed.
One of the most important things to keep in mind is that you are in a much better position to shop for a home, once you have already completed the get mortgage ready process. Getting pre-approved before shopping for a home has a number of benefits that will reduce the stress you may experience when buying a home.
By getting mortgage ready will provide a concrete idea of what your situation will be going forward with your mortgage. It is important to understand what you qualify for and how your financial situation impacts the home buying process. By getting mortgage ready before making an offer on a potential home, you eliminate the stress of not knowing whether or not you are living within your means.
Banks give what they call “pre-approval” and tell you to buy a house, but the process often does not include a thorough credit check which can lead to complications. Because banks do not thoroughly check their customers’ credit before pre-approval and choose instead to complete a hard credit check after an offer is submitted on a home, you may still be rejected.
This happens because banks do not want to put in the extra cost nor the man hours to properly service potential homeowners.
The practice of incomplete Pre-approvals is not in the interest of consumers and we at Blink believe it is important to get mortgage ready so as to remove the stress of surprises from an extremely emotionally taxing process.
Life is not a stable narrative with a cohesive beginning, middle, and end. Unexpected costs occur, changes to your living situation happen, and having a mortgaged property can be extremely challenging during these points in life. Even more stress inducing are breakage penalties on mortgages. Because a mortgage is a long term loan and everyone’s life is subject to rapid changes, it is vital to learn all the terms and conditions you agree to when buying your home.
The best way to know what terms and conditions are available is to compare your offers from multiple lenders and evaluate which loan suits you best. Blink Mortgage removes the need to rate shop by showing you comparisons of all the best rates you qualify for, once you move through the get mortgage ready process. Check out a sample report here and see what Blink Mortgage can do for you.