How to find the mortgage you want
“We’re ready to buy a house.”
I heard this from a friend recently. There’s a big difference between thinking that you’re ready to buy a home and actually being ready for a home mortgage. The idea of throwing a summer bash in your own home sounds very enticing. However, are you ready to make those mortgage payments? Do you have enough money coming in for the other home-related expenses?
Before you go looking for the best mortgage possible in Canada, you need to take care of a few things on your end. How can you get a mortgage mortgage that you want?
Save up enough money for a decent down payment
If you show up with very little capital, you might not get approved for that mortgage. With soaring house prices, you need to take your time to save up for a piece of property. You want at least 20% to 25% saved up to avoid paying mortgage insurance fees, and to ensure that you get approved.
Along with your down payment, you need to show the bank that you have assets so that they know you have something valuable.
Repair your credit
This is the most boring aspect of buying a home. When you apply for a mortgage, the lender looks at your credit. I recommend checking your score in advance so that you don’t end up with any unpleasant surprises.
You have to build your credit over time. If your credit sucks right now, you should to wait to get that mortgage. You might even have to start paying off that student debt and work on starting from scratch again, depending on how bad your credit is.
Hold down a steady job
Would you loan $100 to your buddy who can’t keep a job? Why would a bank want to loan you $400,000 if you haven’t even been at the same job for a year? The bank just wants to know that you’re going to make your payments. Things get very real when those mortgage payments start coming out of your account. That money better be there.
You need to show documentation that you have a job that provides you with a steady source of income. This also means that you have to get your documents together so that you don’t show up without the proper paperwork. You want to ensure that you have
everything in one place so that you look like you know what you’re doing. Don’t forget, too, that you will need to be able to afford homeowner’s insurance, since your lender will require that you be properly insured.
Good luck finding the best mortgage possible. Your home will likely be the biggest purchase of your life. Get the best rate possible so that you’re not stuck spending more money on interest than you anticipated.