Top Seven Things To Do Before Applying For A Mortgage
Buying a house is an exciting experience as it marks the beginning of a new chapter in your life. However, the process of purchasing a property requires more than choosing your dream place. When buying a house, you’ll also need to pick out a suitable mortgage to help you pay for your new home. But as obtaining a mortgage can be tricky, you’ll need to prepare yourself before you actually apply for one.
To help you thoroughly understand what’s required of you to secure an ideal mortgage and become a homeowner, Mortgage Intelligence has listed seven things to do before applying for a mortgage. Keep reading to know what they are.
1. Check your credit score
Inspect your credit score with your credit card company or online with TransUnion for free at Transunion.ca. This will give you an idea of what you are eligible for when looking at mortgages.
2. Save as much as you can
Before considering a mortgage, try to save as much money as you can for as big a down payment as you can afford. The larger your downpayment is, the lower your monthly payments will be. Moreover, a large downpayment helps you qualify for the best mortgage rates and potentially avoid mortgage insurance.
3. Don’t change jobs
When applying for a mortgage, try to avoid changing your job. This is essential to show lenders that you have a stable income and offer them confidence in your ability to repay them.
4. Pay off your existing debts
Before applying for a mortgage, try to pay down as much of your current debt as possible. This helps you qualify for the best mortgage rates.
5. Know what you can afford
Talk to a mortgage professional before applying for a mortgage and ask for help with pre-qualification. Once you’re pre-qualified, you’ll know your budget, and you can accordingly start making offers on properties.
6. Understand the terms
When you choose a mortgage, make sure that you understand all the terms of the mortgage, and even the penalties for breaking the mortgage early. By being aware of the terms and conditions, you can ensure that you select the right product for your needs.
7. Avoid taking on more debt
Don’t accumulate any debt after you obtain a mortgage and before the closing of the home. More debt will limit your spending capacity and put you in a tough position when it comes to paying off your debt.
For more information on the best steps to take when applying for a mortgage, reach out to Dianne McIntyre at Mortgage Intelligence. I am an experienced mortgage broker in Toronto, ON, and I am here to navigate you through the mortgage application process with ease. As an independent mortgage broker, I work on your behalf and help you obtain a suitable mortgage for your specific needs. Before looking for a mortgage, I ensure that I understand your requirements and accordingly find you a mortgage to suit you.