Before buying a home, shop around for the best mortgage lenders. Finding a mortgage lender involves more than just getting a good interest rate; you want to work with the best mortgage companies, staffed by professionals who will guide you through the process.
Locating a Calgary mortgage broker with a solid understanding of the local housing and mortgage market can be beneficial if you’re looking to purchase a property in the city. They can handle all rate negotiations to ensure you receive the best mortgage rate in Calgary.
The Calgary Real Estate market is looking increasingly healthy. And according to a recent report, it’s among the most affordable in the nation as well.
Below are tips for finding the best mortgage lenders.
Get your credit score in shape. The higher your credit score, the more bargaining power you’ll have. Credit is a big factor in the home buying process, and can sometimes be the cause behind either delaying, halting, or avoiding homeownership.
Don’t let credit be the issue that obstructs your dream of owning a home. A good credit score could mean big savings when you purchase, and it’s never too early to start preparing.
Many lenders require a debt-to-income ratio below 43 percent, though some loan programs now allow a maximum ratio up to 50 percent.
To keep your DTI ratio manageable, avoid taking on new loans or making large purchases on credit cards for at least three months (or more) before applying for a mortgage.
Pre-approval means the lender is confident you have the ability to make the necessary down payment and an income that can sufficiently cover your future mortgage payments.
At this stage, only one concern remains: the lender needs to make certain the property’s value offers sufficient collateral in relation to the loan amount. In other words, the home must be appraised for an amount more than or equal to the purchase price.
Buying a home is an adventure as you have to deal with lots of decisions in a limited time.
First, you figure out how much house you can afford. Later comes the mortgage. Knowing how to get the best mortgage rate starts with knowing the answers to these six questions:
- Get a fixed rate or ARM?
- Should I pay points?
- What are the closing costs?
- Any first-time homebuyer programs?
- Down payment size?
- How do I compare?
Don’t take any step without reading and understanding terms, and always examine the fine print on your loan documents. These will tell you the exact finance terms, who pays which closing costs, what items are and aren’t included with the home, whether there are a home inspection contingency, the closing date, and other important details.