As one of your preferred Salmon Arm real estate agents, I am invested in helping you find the right property for you and your family. With spring finally underway, it’s the perfect time to get cracking with your real estate goals for this year. Especially, if you’re looking to save some time and money on your property investment! Please follow along as I go through my top tips surrounding all things mortgages.
Salmon Arm real estate agents know how to qualify for a mortgage
Getting approved for a mortgage is an essential step in your home buying journey. In order to do so, it’s important to be organized and gather the necessary information before approaching a lender. Not only will this add to your success rate, but it will also make the process a little less stressful.
Be familiar with your credit score
Getting to know your credit score is a key step in qualifying for a mortgage. Your credit score gives a snapshot of your financial situation. This helps lenders get an idea of your trustworthiness and reliability when it comes to paying dues on time. The more punctual you are about paying bills and loans, the higher your score will be. Ideally, you want to be somewhere around 660 or higher in order to have the most opportunity when it comes to getting a mortgage. To help boost your credit, check your score quarterly and do what you can to increase the value.
Compile the documents
Making a list of the required documents is a great way to start. Organization will save you much stress when it comes time to meet with a lender. These Documents usually range from: identification, proof of employment, proof of salary, proof you can pay the down payment, information about debts, financial obligations, and/or monthly payments. Be sure to locate these documents before meeting with a lender.
Aim to pay a larger down payment
In saving to pay a bigger down payment, you decrease the amount you need to borrow. This can greatly increase your chances of qualifying for a mortgage. And, decrease the amount of interest you’ll need to pay. In Canada, a down payment is dependent on the price of your home. If you choose to pay less than 20% down as a Canadian, you will need to buy loan insurance. All in all, saving as much as possible will pay off – see what I did there
Don’t quit your day job
Having full-time employment is the best way to showcase stability and ability to pay your mortgage. A steady income is a sure way to getting approved. Lenders want to know that in loaning you money they will be paid back in a timely manner. If you are not currently employed in a full-time position you may find it worth your while to consider obtaining one during the time of your application. This will increase your eligibility and therefore open opportunities for mortgages at a lower interest rate – possibly saving you thousands of dollars.
Determine your budget
Budgeting is the best way to discover what you can and can’t afford, as you look towards obtaining a mortgage. Evaluating your income and monthly expenses will help you get a picture of what your budget will look like moving forwards.
Determine what you can comfortably afford. Stretching your finances can be stressful. You have the best grasp on your monthly costs, so it’s crucial to factor them into what type of mortgage you can pay for. Having enough foresight can save you from spending more than you have. Assess your future plans, and be aware of what effect they could have on your financial situation.
Salmon Arm real estate agents will help you get your dream home
Qualifying for a mortgage can be a difficult and time consuming process – Salmon Arm real estate agents get that. I hope these tips helped make clear any confusion you may have had prior to reading. In sum, qualifying for a mortgage is all about being smart with your spending, staying organized, and being transparent with yourself and your budget. Contact me today to get a move on some awesome Salmon Arm real estate today!