Getting the best mortgage rates in the Calgary area depends on a number of factors ranging from the loan to the terms applied to the loan to the way you plan to pay the loan off. There are many things to consider and keep in mind as you secure a loan for your mortgage and ensuring you get the best mortgage rates Calgary can offer . You can help ensure you get a good mortgage loan and get approved for the loan by considering these following points:
Save Your Cash
Even when you are applying for a loan in Calgary you still need to have cash on hand. Walking in to ask for a loan with zero cash is an almost guaranteed way to get the application rejected. Mortgage lenders are very cautious and will usually require some sort of down payment to be made towards the loan amount. If you are taking a loan for $10,000 you will likely need to make a down payment of at least $1,000 to even be considered for the loan at a decent interest rate. However, down payments aren’t the only expense to be considered. Getting a mortgage also involves closing costs, home inspections, home appraisals, title searches, credit report fees, application fees, and other expenses.
Stay at Your Job
Staying gainfully employed is very critical to your success during the home buying process. Any changes to your income and job situation can cast a negative light on how lenders see you when you come in asking for a loan. Taking a lower-paying job or even worse quitting your job can really have a negative impact on your financial status and lenders must reevaluate your finances so they can reevaluate your ability to pay off the loan should they agree to lend the money to you.
Pay Down Debt
You don’t have to necessarily have your credit cards at a zero balance in order to qualify for a mortgage loan. However, the less you owe your creditors, the better. The amount of debt you are carrying can impact how much of a loan you can qualify for and what interest rates you are going to be able to secure. If your payments are high, the lenders at banks and credit unions in Calgary worry that you will not have sufficient income to cover all of your debts and that you will default on your payments and they will not get their money back.
Get Pre-Approved for a Mortgage
Getting pre-approved before looking at houses is a great choice to make as it can help your financially and emotionally. On one hand, you know right from the start the loan amount you can secure and can use that to negotiate prices and shop around for property in the Calgary area. And on the other hand, you avoid getting your hopes up about a home that you end up not being able to afford. It is easy to get pre-approved and it is a good step to take as you look for your new home.
Know What You Can Afford
You will need to consider more than just monthly mortgage payments. If you get approved for a loan with $800 a month payment, you need to consider if you can actually afford that much in mortgage each month. Look at your gas, food, day care, transportation, car insurance, home insurance, and all other expenses to see what you really can afford each month. Only then should you sign the paper for your Calgary based mortgage loan. Working with someone from MyMortgageBroker.com can help you get a better grasp on your limits and what criteria you need to be looking for as you shop around for the best mortgage rates that Calgary has to offer. Use your ace in the hole and put the years of training and hands on experience to use for you. Contact MyMortgageBroker.com today!